Answer:
The price of King Noodles' bonds is $970.66
Explanation:
Coupon payment = 1000 x 7.5% = $75 per year = 75/4 = 18.75 per quarter
Number of periods = n = 8 years x 4 quarter each year = 32 quarter
Yield to maturity = 8% per year = 8% / 4 = 2% per quarter
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = $18.75 x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$18.75 x [ ( 1 - ( 1 + 2% )^-32 ) / 2% ] + [ $1,000 / ( 1 + 2% )^32 ]
Price of the Bond = $18.75 x [ ( 1 - ( 1.02 )^-32 ) / 0.02 ] + [ $1,000 / ( 1.02 )^32 ]
Price of the Bond = $440.03 + $530.63
Price of the Bond = $970.66
Answer:
128,500 units
Explanation:
The computation of required to realize income from operations is shown below:-
Required sales in (units) = Target contribution margin ÷ contribution margin per unit
= (Fixed cost + target income from operations) ÷ (Selling price per unit - variable cost per unit)
= ($14,300,000 + 2,405,000) ÷ ($380 - $250)
= $16,705,000 ÷ $130
= 128,500 units
Answer:Substitution ---B
Explanation:
When goods are closely related together such that they both give similar purpose , they are called Substitute goods.
Therefore when any of the substitute goods prices rises, Consumers will go for the cheaper alternatives which will provide more value for thier money.
Here, the rise in the price of Pepsi caused consumers to shift to a cheaper alternative which is Coke. Other substitute goods that can have the Substitution effect include beef and chicken, butter and margarine etc
Answer:
increase in modernization by new investors.
Explanation:
When countries sell off state-owned enterprises and privatize them, it usually results in an increase in modernization by new investors. This is because, new but private investors will want to earn quickly their Investment back, and in so doing, will pump adequate capital into the business, so as to attract customers and enhance iamge of the company.
Note also that:
1. Decline in productivity throughout the private sector can not be caused by sales of geovenrment assets to private investors.
2. Acquisition of government ownend assets can not leads to lack of accommodation of outside investors.
3. Sales of government assets can not continuing to drain on future natural resources. As this will even lead to money being spent somewhere else or wisely saved for future and cogent use.
4. Change in political leadership can not be caused by sales of government assets to probate imvestor(s).
