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- May I ask for a solution and explanation to the problem for a better understanding. Thank you! 9. Using carrot corp., what is the debt-to-equity ratio? a. 30.77 : 1 b. 31.60 : 1 c. 30.50 : 1 d. 31.20 : 1please anser and explainIncluding the new proposed term loan, what is Nuts n' Seeds Incorporated's 20Y0 total liabilities to equity ratio if you: 1) treated the shareholder loan as equity rather than as a liability, and 2) tested the operating line as fully drawn? (see attached balance sheet) A. 1.10 B. 1.25 C. 1.15 D. 1.20Explain why y0u disagree 0r agree with the f0ll0wing statements. The answer sh0uld n0t be m0re than 3 sentences (with reference of google links) Step 1 Define Treasusy BondS & Corporate Bonds Step 2 Difference between annuity due and ordinary annuity Step 3 Treasury b0nds are riskier than c0rp0rate b0nds. All 0ther things held c0nstant; the future value 0f an 0rdinary annuity is always having a higher future value than annuity due. All 0ther things held c0nstant, the price 0r interest rate risk 0f sh0rt-term b0nd is always l0wer than l0ng-term b0nd
- Loans are collateralized to:a increase returnsb increase liquidityc reduce concentration riskd all of the above Contingency liquidity support includes:a sale of short term securitiesb repo agreementsc secured line of credit from another financial institutiond sale of equityVi (H X.) 25) A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a A) fixed-payment loan. C) simple loan. B) coupon bond. D) discount bond. 25) Prla bonitob at bloky enig (7.8) The interest rate investors expect on a new bond issue can be determined by computing the for the company's Alternatively, it is possible on newly to determine the cost of new debt financing by finding the issued bond with similar (7.9) The firm's overall measure of the cost of capital is the cost of debt is the The dollar cost of equity is overall firm average cost of capital is the cost of equity plus the cost of debt, divided by The dollar (7.10) Interest (is / is not) a tax-deductible expense, and dividends paid to stockholders (are / are not). The payment of interest reduces the firm's taxes by after-tax cost of debt in dollars equals The after-tax cost of debt in percentage terms is WACC = dito The The
- 21. Which of the following is a source of short-term financing? Group of answer choices Issue Long Term Bonds Issue New Stock Factoring Accounts Receivable____ occurs when a firm calls a relatively high interest rate issue and replaces it with a lower interest rate issue. a. Bond refunding b. A call feature c. A sinking fund d. Indenture refinancingCompared to junior unsecured debt, subordinated debt exhibits __________ credit risk, __________ yield, and __________ recovery rate. A. lower / lower / higher B. higher / higher / lower C. higher / lower / lower D. lower / higher / lower
- (i) ‘Debt finance is less expensive than equity finance’ Explain (ii) Explain the following: Debenture Convertible bonds Mezzanine debt Syndicated loans1. Explain what a unsecured debt, subordinated debt, senior debt is? -is there risk in buying an unsecured debt and subsequently having the corp issue a senior debt? - Which types of debt of these would have the lowest interest rate, the highest?H5. Which of the following is the name of the semiannual payment of $20 that you receive on a bond you own? a. Face Value b. Discount c. Yield d. Call Premium e. Coupon Explain with details and also explain wrong options