Theresa davis is in the 30% personal tax bracket. she is planning to buy $5,000 of hca (taxable) bonds that offer a 11% interest rate. answer the following questions: 1) how much interest will ms. davis earn from the hca bonds? 2) mercy hospital (a not-for-profit corporation) issues tax exempt bonds at an interest rate of 8%. if ms. davis buys $5,000 of these bonds, how much interest will she earn?

Kinkead inc. forecasts that its free cash flow in the coming year, i. e., at t = 1, will be −$10 million, but its fcf at t = 2 will be $20 million. after year 2, fcf is expected to grow at a constant rate of 4% forever. if the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?

Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?

What is the difference between secure bonds and naked bonds?