Question

When a company has 2.6 years of burn rate left. Is it considered a bad company? Why?

Answer #1

**Answer-**

**The burn rate of 2.6 years is the median effective
remaining life where the companies solicit shareholders for fresh
reserves before the existing supply of available shares starts to
decrease.**

**When the company has 2.6 years of burn rate left it is
considered as a company which is running out of cash and it will
have to raise capital to sustain in the future through shareholders
and increase the reserves of the company.
The company can be considered bad company as the chances of revival
are difficult as the company may find difficult to convince the
shareholders to raise money.**

A 10-year, $1,000 par T-note with a coupon rate of 2.6%
(semi-annual payments) has 8 years left to maturity and a current
yield of 1.92%. What is the T-note's value?

A 10-year, $1,000 par T-note with a coupon rate of 2.6%
(semi-annual payments) has 8 years left to maturity and a current
yield of 1.92%. What is the T-note's value?

So
when a intrinsic value is considered under valued or over valued,
is it a bad thing that its under valued and its good if its over
valued? Like why do we have to calculate these values and what do
they mean?

When/How is a monopoly considered to be "good" or "bad" from and
consumer's perspective? The supplier's perspective?

Monty Company has recorded bad debt expense in the past at a
rate of 1.5% of accounts receivable, based on an aging analysis. In
2017, Monty decides to increase its estimate to 2%. If the new rate
had been used in prior years, cumulative bad debt expense would
have been $385,200 instead of $289,000. In 2017, bad debt expense
will be $121,200 instead of $95,720. If Monty’s tax rate is 29%,
what amount should it report as the cumulative effect...

Marigold Company has recorded bad debt expense in the past at a
rate of 1.5% of accounts receivable, based on an aging analysis. In
2020, Marigold decides to increase its estimate to 2%. If the new
rate had been used in prior years, cumulative bad debt expense
would have been $437,500 instead of $328,125. In 2020, bad debt
expense will be $123,200 instead of $92,400. If Marigold’s tax rate
is 30%, what amount should it report as the cumulative effect...

Sweet Company has recorded bad debt expense in the past at a
rate of 1.5% of accounts receivable, based on an aging analysis. In
2017, Sweet decides to increase its estimate to 2%. If the new rate
had been used in prior years, cumulative bad debt expense would
have been $399,500 instead of $291,800. In 2017, bad debt expense
will be $136,600 instead of $92,470. If Sweet’s tax rate is 30%,
what amount should it report as the cumulative effect...

assume a risk free rate of 2.6 percent a market risk rate of
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company is 1.4 times riskier than the overall market. The company
has no preferred stock. The company paid 3,500,000 in taxes last
year on pretax income of 10,000,000 what is the after tax cost of
debt? What is the WACC?

A bond has five years to maturity. It has an annual coupon of
2.6%. It has a comparable yield of 9.0%. Using the Excel - TVM
method (not the formula shortcut) the duration of this bond is
____. Show 2 decimals in your answer

A bond has 8% coupon rate (coupon paid semiannually) and
it has 8 years left to maturity. The face value is $1000. If the
yield to maturity is 10%, what is the bond price? (10
points)

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