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NEW QUESTION: 1
According to the NASAA Model Rules, which of the following institutions would not be considered a
A. a savings institution that is insured by the FDIC
B. a foreign financial institution
C. a broker-dealer that is registered with the state
D. a bank that is insured by a private, state-sponsored insurance company
According to the NASAA Model Rules, a bank that is insured by a private, state-licensed
insurance company would not be considered a qualified custodian. Registered broker-dealers, foreign
financial institutions, and banks and savings institutions that are insured by the FDIC are on the list of
NEW QUESTION: 2
UV has raised $100,000 through the issue of two irredeemable financial instruments:
* 6% debentures with a current market value of $101.50 per $100 nominal value; and
* 8% preference shares with a current share price of $2.20 each.
The corporate income tax rate is 20%
What is the post tax cost of debt for each of these instruments?