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3 years ago

Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability

1 answer:

3 0

Company’s profitability is important for a business to survive and remain strong in giving the benefits that shareholder or investors expect. Profitability ratios help measure a company's ability to generate income and profits based on its invested capital. In addition, most analysts and decision makers used these ratios as an <span>indicator of certain aspects of a company's performance.</span>

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Consider two bonds, a 3-year bond paying an annual coupon of 5% and a 10-year bond also with an annual coupon of 5%. Both curren

Schach [20]

Answer:

Bond Price = $875.6574005 rounded off to $875.66

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1,000 * 0.05 = $50

Total periods (n) = 3

r or YTM = 0.10

The formula to calculate the price of the bonds today is attached.

Bond Price = 50 * [( 1 - (1+0.10)^-3) / 0.10] + 1000 / (1+0.10)^3

Bond Price = $875.6574005 rounded off to $875.66

8 0

3 years ago

A manufacturing plant located by a busy highway uses and stores highly volatile explosives. The owner of the plant has imposed s

EastWind [94]

Answer: No, because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.

Explanation:

Based on the information given in the question, the driver will not prevail. This is because the damage to the windshield did not result from the abnormally dangerous aspect of the plant’s activity.

In this case, the owner of the plant has imposed strict safety measures to prevent an explosion at the plant and the damage of the windshield of the car was due to heavy windstorm and not from the plants activities.

8 0

3 years ago

A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm’s production process more efficient which

Alexeev081 [22]

Answer :

The equivalent annual annuity of GSU-3300 = 6,520.30

Explanation :

The computation of the equivalent annual annuity of the GSU -3,300 is shown below:

As per the data given in the question,

For GSU-3300, Cash flow =$25,010

Time = 8 years

Cost = $99,984

For UGA-3300, Cash flow = $28,975

Time = 9 years

Cost $123,069

Based on this,

The equivalent annual annuity of GSU-3300 is

= -$99,984 × 9.63% ÷ {1 -1 ÷ (1 + 9.63%)^8} + $25,010

= 6,520.299

= 6,520.30

7 0

3 years ago

The valuation of a common stock today primarily depends on:A, the number of shares outstanding and the number of its shareholder

vlada-n [284]

Answer:D

Explanation:The answer is D because the value of a common stock depends on the amount the stock was purchased for and the amount it was sold for.

3 0

3 years ago

A group of microbiology students has been working on a semester-long project that will determine 50 percent of the students' cou

Setler [38]

This scenario is an example of GROUP THINKING.
Group thinking refers to the psychological phenomenon which normally occur withing a team or a group of people as a result of desire for harmony and conformity within the group. In the process of conforming to the group, irrational decisions are usually made.

3 0

3 years ago