Mountain Retreat and Resort is undergoing a major expansion. The expansion will be financed by
issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070
each.
The firm's flotation expense on the new bonds will be $50 per bond. The firm's marginal tax
rate is 35%. What is the relevant cost of the new bonds for capital budgeting purposes?
A) 5.14% B) 8.45% C) 5.69% D) 4.82%
C
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Planned shopping centers are concerned with retail balance in terms of one-stop shopping appeals and to ensure _____
a. visibility b. an adequate economic base c. a proper level of saturation d. an adequate traffic count
Which of the following statements is true?
I. Throughput is the total volume of production passing through a facility. II. Throughput is controlled by the total capacity of a system. III. Work centers feeding bottlenecks should be 100% utilized. A) I only is true. B) III only is true. C) II and III only are true. D) I and II only are true. E) II only is true.