User Account

All Pages

What is effective dividend rate that the utility is paying

Assignment Help Finance Basics
Reference no: EM13881794

The Ester Municipal Water Utility issued 20-year bonds in the amount of $53 million for several high-priority fl ood control improvement projects. The bonds carried a 5.38% dividend rate with the dividend payable annually. The U.S. economy was in a recession at that time, so as part of the federal stimulus program, the Utility gets a 35% reimbursement on the dividend it pays.

(a) What is the effective dividend rate that the Utility is paying on the bonds?

(b) What is the total dollar amount the Utility will save in dividends over the life of the bonds?

(c) What is the future worth in year 20 of the dividend savings, if the interest rate is 6% per year?

Reference no: EM13881794

Questions Cloud

What impact accumulated other comprehensive income : Explain what impact accumulated other comprehensive income (from unrealized securities gains or losses) has on bank regulatory capital.
An academic journal article in the sociological format : What is the proper way to cite an academic journal article in the sociological format?
Impact on macro economy : Prepare a 1300 words report on Dodd Frank Wall Street Reform and Consumer Protection Act make a review and opinion of its impact on Macro Economy.
How would you decide between the two models : Suppose you want to study the behavior of sales of a product, say, auto- mobiles over a number of years and suppose someone suggests you try the following models:Yt = β0 + β1 t ,Yt = α0 + α1 t + α2 t2 - How would you decide between the two models
What is effective dividend rate that the utility is paying : What is the effective dividend rate that the Utility is paying on the bonds? What is the total dollar amount the Utility will save in dividends over the life of the bonds?
A researcher decided to study student employment : A researcher decided to study student employment and study patterns at Montgomery college. The target group, Montgomery College students, would be known as : a- the population. b- a random sample. c- a stratified sample.
A paper on sociological imagination : 1) Describe the personal experience as an outsider might describe it. (hint: depending on what you choose and the perspective you choose, this may require a little research)
Find the applied linear transformation matrix : Solve the given system using A - column-space and output space and solve the given system using A-row-space and input space - A linear transformation is applied to the object on the left and we got the object on the right. Find the applied linear tr..
How to apply various electronic commerce mechanisms : Explain how to apply various electronic commerce mechanisms to support traditional marketing operations and create Web-based

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd