Answer:
(a) Bond cost 2000000
Bond discount 10%
Bond years 10
Bond yield 4%
Interest (Jan-June) 100000
Less: Premium Amortisation (4000) (2000000*0.04)/10 *6/12
Interest expense 96000
(b) Bond cost 562500
Bond discount 9%
Bond years 10
Bond yield 10%
Interest (June 30-Oct 30) - ((1.10)^4/12) - 1=3.228%
Interest expense= 562500*3.228% =18157.5
Answer:
Expected return is 12.6%
Explanation:
Zero beta portfolio has no systematic risk. A zero beta portfolio has same expected rate of return as risk free rate. It does not effects with market change.
Using CAPM formula to calculate the expected return
Expected return = Risk free rate + Beta ( Market rate - risk free rate )
As we know
Expected return on zero beta portfolio = risk free rate
Expected return = 7% + 0.7 ( 15% - 7% )
Expected return = 7% + 0.7 ( 8% )
Expected return = 7% + 5.6%
Expected return = 12.6%
Answer:
1) $30
2) 2,014,000 shares
Explanation:
1). A 4 for 1 stock split means that for every one stock outstanding, there would be two stocks outstanding port the split. However, the value of the firm is not increased here. So, the value of firm won't change
Value of firm pre-split = Value of firm post-split
Therefore,
Number of shares pre-split * Share Price pre-split = Number of shares post-split * Share Price post-split
1 * $90 = 3 * Share price post-split
Solve for share price post slip:
Share price post-split = $90/3 = $30
2) Number of shares post stock dividend = Number of shares pre stock dividend * (1 + Dividend %)
Number of shares post stock dividend = 1,900,000 * (1 + 6%) = 2,014,000 shares
Answer:
The second answer
Explanation:
That would not help you do well in school
Answer:
Training - Benefit
Flexibility - Challenge
Culture - Benefit
Employee commitment - Benefit
Explanation:
Benefit is the term which is described as the outcome or the result of a decision or an action, which directly contribute to meeting or accomplishing the goals of the business.
Challenge is the term which is defined as something difficult or new, which needed the great determination as well as efforts.
So,
Training - It is a benefit, which help the business as employees will trained regarding something which help them in accomplishing the goals.
Culture - It is a benefit, as the business adapts themselves in different culture will benefit the in making profit.
Flexibility - It is challenge for the business, as undergoing the flexibility would be something that require efforts and determination.
Employee commitment- It is a benefit as the giving commitment to something and then follows it, would be a benefit for the person.