A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. What is interest expense for 2013, using straight-line amortization? a.
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A project has fixed costs of $5,000 per year, depreciation charges of $2,000 per year, revenue of $30,000 per year, and variable costs equal to 70% of revenues. What is the degree of operating leverage for this project
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