Question

Please discuss corporate bond interest in terms of cost of capital
versus investor yields. Also, discuss municipal bond interest in
terms of investor yields.

N.B

please discuss substantially

Answer #1

Please discuss corporate bond interest in terms of cost of
capital versus investor yields. Also, discuss municipal bond
interest in terms of investor yields.

Explain corporate bond interest in terms of cost of capital
versus investor yields. Also, explain the municipal bond interest
in terms of investor yields.

Explain corporate bond interest in terms of cost of capital
versus investor yields. Also, explain the municipal bond interest
in terms of investor yields.

An investor in the 35 percent tax bracket may purchase a
corporate bond that is rated A and yields 6.0 percent. The investor
may also buy an A-rated municipal bond with a 3.9 percent yield.
Why may the corporate bond be preferred? (Assume that the terms of
the bonds are the same.)

An investor is attempting to decide between the purchase of a
tax-free municipal bond or a corporate bond. She is in the 32% tax
bracket (rate). A municipal bond yields 2.2% interest and a
corporate bond yields 3.1% interest. Which should she purchase?
Please state the reason.

A municipal bond pays interest rate of 4%. A corporate bond of
similar risk and maturity pays interest rate of 5%. An investor
with a marginal tax rate of 30% will
a. Choose the municipal bond
b. Choose the corporate bond
c. Be indifferent between the two bonds
d. Invest 50:50 in the two bonds
The following data pertain to Debry Company for 2017 and 2018.
The company reported net income of $120,000 during 2018.
Depreciation expense was $25,000. Calculate...

In terms of corporate finance, please explain the importance of
capital structure and give examples.

You can invest in either a corporate bond which
yield 4.85%, or a municipal bond (of equal risk) which yield
3.43%. Which investment should you
choose?
Ignore state income taxes:
A.
Your marginal personal tax rate is 35%
B. Your marginal personal tax rate is
14%
Please show your calculation for each investor
from (Muni to Corporate bond, and once again, from Corporate to
Muni bond equivalent interest rates). In other
words,
your calculations will cover two different
situations for parts...

Please discuss on the aspects of the bankruptcy process. Also,
discuss capital structure and how can a company's structure impact
its progress through the bankruptcy process
.

Please discuss how capital structure affect a firm's cost of
capital.

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