You predict these recently proposed extensions will be

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Reference no: EM132032518

1. How successful do you predict these recently proposed extensions will be? Why?

a. Mont-Blanc (famous for pens): fragrances and other accessories (watches, cufflinks, sunglasses and pocket knives)

b. Evian (famous for water): high-end spas

c. Starbucks (famous for coffee): film production and promotion

d. Trump (famous for hotels and casinos): vodka and mortgage services

2. Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9%, and coupons are paid semiannually. The bond is currently selling for $908.72 per $1,000 bond. What is the after-tax cost of debt if the tax rate is 35%?

A. 3.25%

B. 5.00%

C. 6.50%

D. 7.75%

E. 10.00%

Reference no: EM132032518

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