The landers corporation needs to raise $1.80 million of debt on a 20-year issue. if it places the bonds privately, the interest rate will be 10 percent. forty thousand dollars in out-of-pocket costs will be incurred. for a public issue, the interest rate will be 10 percent, and the underwriting spread will be 5 percent. there will be $90,000 in out-of-pocket costs. assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 20-year period, at which time it will be repaid. use appendix b and appendix d for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. for each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. assume the stated discount rate is 16 percent annually. use 8.00 percent semiannually throughout the analysis. (disregard taxes.) (assume the $1.80 million needed includes the underwriting costs. input your present value of future payments answers as negative values. do not round intermediate calculations and round your answers to 2 decimal places.)

The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivityb. attitude of governmental unitsc. location of marketsd. zoning regulationse. exchange rates