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NEW QUESTION: 1
Which of the following will tend to have the lowest yield?
A. Certificate of deposit
B. Interbank deposit
C. Treasury bill
D. BA
Answer: C
NEW QUESTION: 2
An insurance claim type is defined as follows:
If the Review claim step is configured to set the status to Pending-Investigation, when is the status of the case set to Pending-Investigation?
A. When Investigate claimstep completes.
B. When the Process claimstage starts.
C. When the Review claimstep completes.
D. When the Review claimstep starts.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
Assume the following facts about Martin Corporation:
. The long-term debt was originally issued at par ($1,000/bond) and is currently trading at $1,250 per
bond.
. Martin Corporation can now issue debt at 150 basis points over U.S. treasury bonds.
. The current risk-free rate (U.S. treasury bonds) is 7 percent.
. Martin's common stock is currently selling at $32 per share.
. The expected market return is currently 15 percent.
. The beta value for Martin is 1.25.
. Martin's effective corporate income tax rate is 40 percent.
Based on these assumptions, what is the current net after-tax cost of debt for Martin Corporation?
A. 5.5 percent.
B. 8.5 percent.
C. 7.0 percent.
D. 5.1 percent.
Answer: D
Explanation:
Choice "c" is correct. 5.1 percent current net cost of debt.
The fact pattern states that debt can be currently secured at 150 basis points above the Treasury bond
rate. A basis point is equal to 1/100 of 1% (1% of 1%).
Applying the decimals it's:
1 50 basis points x 1/100 of 1% (or .0001)
this yields .015 or 1.5%
Add the additional basis points converted to percentage (1.5%) to the Treasury bond rate of 7% to arrive
at the pre-tax debt cost of 8.5%. Apply 1 - tax rate to arrive at the current net cost of debt as follows:
NEW QUESTION: 4
In Multi-Channel Funnel Reports, conversions and ecommerce transactions are attributed to the last campaign, search, or ad that referred the user.
A. False
B. True
Answer: A