Answer:
current market price of the bond is $667
Explanation:
the formula to calculate yield to maturity (YTM) is:
YTM = [C + (F - P)/n] / [(F + P)/2]
-
F = face value
- P = market price
- n = number of years x 2 =
- C = coupon
we just start replacing and solve for P:
- YTM = 8%
- C = 50
- F = 1,000
- n = 20
8% = [50 + (1,000 - P)/20] / [(1,000 + P)/2]
8% x (1,000 + P)/2 = 50 + (1,000 - P)/20
8% x (500 + 0.5P) = 50 + 50 - 0.05P
40 + 0.04P = 100 - 0.05P
0.04P + 0.05P = 100 - 40 = 60
0.09P = 60
P = 60 / 0.09 = 667
Answer:
$26.52.
Explanation:
We use the MM Proposition I formula as follows:
VL = VU + (Tc * D) ....................................................... (1)
Where;
VL = Value of a levered firm, i.e. X = ?
VU = Value of an unlevered firm, i.e. Y = $24
Tc = Tax rate = 21%
D = value of debt = $12
Note: The US 2020 corporate tax rate is used as the tax rate since no tax rate is given in the question.
Substituting the values into equation (1), we have:
VL = $24 + (21% * $12) = $24 + $2.52 = $26.52.
Therefore, According to MM Proposition I, the stock price for Firm X is closest to $26.52.
This isn't really a business question, but generally vegetables would be a healthier choice for a pizza topping instead of meats and cheeses.
Answer:
interest group
Explanation:
Based on the information provided within the question it can be said that this is an example of an interest group. This term refers to group of individuals that share a common interest and because of it work in unison in order to influence the government so that they promote and protect that interest. Which in this scenario the group's main interest is on the food selection in the cafeteria, and are working together to influence the organizational entity to change it.
Answer: Cost focus strategy
Explanation:
The cost focus strategy is one of the type of business strategy in which the various types of companies or organizations are try to expand their marketing segments and also emphasizing the cost in the market.
The cost focus strategy is one of the important element and component of the generic marketing strategy in the market.
According to the given question, the ski safety selling the various types of products for the rescue purpose and it outlining the main objective and start selling on the basis of emergency at very high cost.
Therefore, Ski safety is basically pursing the cost focus strategy.