54 586
Assignments Done
98,3%
Successfully Done
In November 2017
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Finance Question for Cameron

Question #30780
This Companyies only source of debt funding is by use of perpetual note. This note is currently pried at $55. The note pays quarterly interest on a $100 face value. Assume a constant nominal rate of 4% (in practice the rate changes over time). The total number of notes on issue equal 50000.

q1. Calculate the cost of debt for this company. (round to 4 decimal places)

The first part of this question asked for the cost of equity which is 9.69%.
Expert's answer
The cost of debt can't be calculated, because condition of the problem seems to be incorrect. If one note pays quarterly interest on a $100 face value, it means that dividends what we will get cover the price of note $ 55 almost two times. Therefore we wouldn't have any debt.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question