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Dovator [93]
3 years ago
10

Credit risk measures using the structural model: assume a company has the following characteristics.

Business
1 answer:
Alexeev081 [22]3 years ago
4 0

Answer:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59

Explanation:

a ) Probability of default of debt over the time to maturity is 12.92%

(b ) Expected loss: $39.53

(C ) Present value of expected loss is $45.59.

Values calculated as shown in my detailed step by step answer at the attachment.

please kindly refer to attachment.

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Village East expects to pay an annual dividend of $1.40 per share next year, and $1.68 per share for the following two years. Af
VashaNatasha [74]

Answer:

$15.15

Explanation:

Given:

  • D1 = $1.4
  • D2 = $1.68  
  • Growth = 3.4% = 0.034
  • Discount rate = 13.7 % = 0.137

As we know that:

  • P3= ($1.68 × (1+034)) / (0.137 - 0.034)= $16.86

So, P0:

= $1.40 / 1.137 + $1.68 / 1.1372 + ($1.68+ $16.86)/ 1.1373

= $15.15

Hope it will find you well.

8 0
3 years ago
According to McGregor’s ________, working is as natural an activity as resting or playing, and people will work hard to achieve
qwelly [4]

Answer: Theory Y

Explanation:

Theory Y is one of the human work motivation created by McGregor. The theory states that "workers that are motivated and enjoy their work will perform better without a direct reward system". This happens when managers value their employees and see them as assets.

7 0
4 years ago
A resource constraint can be exploited using CCPM methodology by: Determining the priority among projects for access to the drum
irina [24]

Answer:

Determining the priority among projects for access to the drum.

Explanation:

An Israeli physicist named, Eliyahu M. Goldratt developed the Critical Chain Project Management (CCPM) and introduced it in his book "Critical Chain" in 1997.

The CCPM is a project management methodology used by managers to better manage a project. The CCPM ensures that the project plan is feasible and immune from any uncertainty or statistical fluctuations.

In the CCPM activity network, there are no milestones and all non-critical activities are performed as late as possible.

A resource constraint can be exploited using Critical Chain Project Management (CCPM) methodology by determining the priority among projects for access to the drum (a system wide constraint).

CCPM adopts the use of drum buffers, so as to ensure extra safety is applied to a project immediately before using constrained resource.

3 0
3 years ago
What two elements do you need to know in order to gauge whether your post-college debt will be affordable?
icang [17]

The two elements we need to know in order to gauge whether your post-college debt will be affordable are given below.

  • Amount owed
  • Future income

Debt entails borrowing money directly, while equity means selling a stake in your company in the hopes of securing economic backing. Both have professional and cons, and many companies pick to use an aggregate of the two financing answers.

Debt approaches the quantity of money which needs to be repaid lower back and financing manner offering price range for use in commercial enterprise sports. A crucial characteristic in debt financing is the reality that you aren't losing ownership of the corporation.

Debt is something owed by way of one party to every other. Examples of debt include amounts owed on credit score cards, car loans, and mortgages.

Learn more about debts here brainly.com/question/1957305

#SPJ4

8 0
2 years ago
When sales increase by 13%, which of the following should also increase by 13% in a merchandizing company? (You may select more
schepotkina [342]

Answer:

Please see attachment

Explanation:

Please see attachment

5 0
3 years ago
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