Answer:
Correct option is (c)
Explanation:
Given:
YTM (yield to maturity) (Rate) = 12%
Coupon rate = 11%
Face value = $1,000,000
Coupon payment (pmt) = 0.11 × 1,000,000 = $110,000
Time period (nper) = 10 years
Selling price of the bond is the present value of the bond which can be computed using spreadsheet function =PV(rate,nper,pmt,FV)
=PV(0.12,10,110000,1000000)
Present value of bond is $943,498 which is close to option (c)
Advantage, vertical integration is like controlling all your distributors for your business and all your company’s who make your product.
Answer:
1. Asset turnover times.
=1.31 times
2. Return on assets. = 7.9%
3. Return on common stockholders’ equity =10.5%
Explanation:
Asset turnover
Asset turnover indicates how efficient a business in the use of asset to generate sales. The higher the number of times the better.
Asst turnover = Turnover /Total asset
= 757,500/577,100
=1.31 times
Return on Asset
Return on asset is measure of the percentage of asset earned as income. The higher the better
Return on assets = Net income/Assets
= 45,500/577,100× 100
= 7.9%
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<em>Return on Equity</em>
This measures the proportion of equity investment earned as net income. The higher the better
Return on Equity = Net income/Equity
Return on commons stockholders
= 45,500/433,400 × 100
=10.5%
Answer: 9.86%
Explanation:
Nominal rate of return given the above values can be calculated as:
= (Price - Purchase price + Coupon payment) / Purchase price
= (1,007 - 953 + 40) / 953
= 9.86%
<em>Coupon = Coupon rate * face value of bond which should be $1,000</em>
<em>= 4% * 1,000</em>
<em>= $40</em>
Answer:
<em>Rewards they want</em>
Explanation:
<em>Expectancy theory</em><em> is about the selection or failure of mental processes. This describes the choices made by an individual's processes. </em>
Expectancy theory is a theory of motivation first introduced by Victor Vroom of the Yale School of Management in the study of organizational behavior.
This theory highlights the need for companies to directly relate incentives to success and to ensure that the rewards given are the rewards that the recipients expected and desired.
