Suppose your company needs to raise $40.5 million and you want to issue 25-year bonds for this purpose. Assume the required return on your bond issue will be 5.5 percent, and you’re evaluating two issue alternatives: a 5.5 percent semiannual coupon bond and a zero coupon bond. Your company’s tax rate is 25 percent. a.
How many of the coupon bonds would you need to issue to raise the $40.5 million? How many of the zeroes would you need to issue?

When is going to be why would you put money into saving account

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers. b) may not accept the offer because it is considered lavish entertainment. c) must obtain written consent from batts brothers before accepting the offer.

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes