There is NO general rule for the percentage of debt to gdp that will make a government bond yields spike
Answer: Jordan's mobile communications device company is conducting an <em>industry analysis</em> as it considers <em>new strategies</em> for its five-year strategic plan. The analysis reveals that recent government deregulation has reduced the barriers to entry and <u>several start-ups are entering the industry.</u> The solution that could be a part of the the plan to counteract is to acquire the company's biggest supplier, bringing the capability of manufacturing critical component parts into the business structure.
Explanation: The <u>Strategic Plan</u><u> </u>of a company serves to establish the <em>objectives to be achieved and the methods</em> of action to achieve them .
It includes the meeting of the <em>team of directors</em> of the company and the ideas are written down so that the whole team finds out about the <em>strategy to follow </em>and the objectives, generally up to the following 5 years.
Some of the point to be clarify are for <em>example </em>:
- Opportunities
- Threats
- Economy
- Technology
- Size of the market
- Evolution of the market
Each company must see <u>the best option</u> in any case <u>to achieve </u>the goals that have been proposal on the strategic plan .
Is important to know the <em>kind of competitors and suppliers</em> that are in the market in order to face the difficulties on the most outstanding way that company has.
Answer:
For Loan A = 3.170%
For Loan B = 3.174%
Loan B has a higher effective annual rate.
Explanation:
The computation of effective annual rates for the loans is shown below:-
For Loan A
We will assume effective annual rate is a
Stated rate(r) = 3.125% compounded monthly
= Number of periods in an year n = 12
So,
(1 + a) = (1 + r ÷ n) × n
= a = (1+0.03125 ÷ 12) × 12 - 1
= 0.03170
or
= 3.170%
For Loan B
We will assume the effective annual rate is b
Stated rate (r) = 3.15% compounded semi annually
= Number of periods in an year n = 2
So
(1 + a) = (1 + r ÷ n) × n
= a = (1 + 0.0315 ÷ 2) × 2 - 1
= 0.03174
or
= 3.174%
From the above calculation we can see that Loan B, is greater than Loan A and has a higher effective annual rate.
Consumers often face a trade-ooff between Wants and Needs
