Buxbaum Corporation is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?

At the beginning of the year, Nothing More Corporation had a long-term debt balance of $38,679. During the year, the company repaid a long-term loan in the amount of $11,889. The company paid $4,805 in interest during the year, and opened a new long-term loan for $10,395. What was the cash flow to creditors during the year?

The inflation rate over the past year was 2.2 percent. If an investment had a real return of 7.4 percent, what was the nominal return on the investment?

Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $21,500 per month for the next 10 years with the first payment due today. If the APR is 8.64 percent compounded monthly, what is the value of the payments today?

At the beginning of the year, long-term debt of a firm is $282 and total debt is $326. At the end of the year, long-term debt is $256 and total debt is $336. The interest paid is $22. What is the amount of the cash flow to creditors?

At the beginning of the year, Vendors, Incorporated, had owners’ equity of $51,215. During the year, net income was $7,375 and the company paid dividends of $4,915. The company also repurchased $9,365 in equity. What was the cash flow to stockholders for the year?

Reyes has a dividend yield of 5.4 percent and a total return for the year of 4.8 percent. Which one of the following must be true?

A company is obligated to pay its creditors $6,505 at the end of the year. If the value of the company’s assets equals $6,367 at that time, what is the value of shareholders’ equity?

The bond has a coupon rate of 6.29 percent, it makes semiannual payments, and there are 5 months to the next coupon payment. The bond has a clean price of $995 and the par value is $1,000. What is the invoice price?

A company has total equity of $1,905, net working capital of $155, long-term debt of $900, and current liabilities of $930. What is the company’s net fixed assets?