Which of the following is not a liquid investment

Bond Features Maturity (years) 5 Face Value = $1,000Coupon Rate = 5.00%Coupon dates (Annual) Market interest rate today 5.00%Tim

german

Answer:

it should call back the bonds as it will save $8.25

Explanation:

Bond Price can be calculated using PV function. After 3 years,

N = 2, PMT = 5% x 1000 = 50, FV = 1000, I/Y = 2%

=> Compute PV = $1,058.25

Without the call option, the bond would be worth $1,058.25. But the firm can buy those bonds at $1,050.

Hence, it should call back the bonds as it will save $8.25

5 0

3 years ago

Why the companies need to extend their product life cycle?

just olya [345]

Answer:

because of the product and the correct one is the one of the product is not working properly

8 0

2 years ago

The Timken Company has announced a rights offer to raise $5.1 million. The company's stock currently sells for $34 per share, th

omeli [17]

Answer:

Right price =$33.50

Explanation:

The theoretical ex-right price is the weighted average price at which shares are expected to settle after a right-issue,

It is the weighted average price of value of shares of the before-right price and the right price

Ex-rights price

=(Before-right value of shares + Proceed from rights )/Total number of shares after rights issue

Number of rights issue units = amount to be raised /Right price per share

= $5.1 m/$30 = 170,000 units

Before - rights value = 1,207,000 × $34 = 41,038,000

Proceed from rights = 170,000 × $30 = 5,100,000

The ex-right price = (41,038,000 + 5,100,00)/(1,207,000 +170,000) units

Right price =$33.50

8 0

3 years ago

Bass new product forecasting model is used for estimating long term sales potential of a product True False

kobusy [5.1K]

Answer:

True

Explanation:

The Bass New forecasting model is a forecasting model that is commonly used to estimate the sales of a product at a certain in future and it is used for highly durable goods.

The bass new forecasting model wad developed by Frank Bass and it has a formula

f ( t ) = p + qF ( t )

1 - f ( t )

where:

f ( t ) is the change of the installed base fraction

F(t) is the installed base fraction

p is the coefficient of innovation

q is the coefficient of imitation

Cheers.

7 0

3 years ago

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Complia

olga nikolaevna [1]

Answer:

A) the law does not codify all ethical requirements.

Explanation:

Laws are meant to be generally and applicable to all individuals or organizations. It is absolutely impossible that laws could be made specifically for every single person, business, organization, and that it covers all their possible actions.

Imagine that there are over 32.5 million businesses in the US, that means that 32.5 million laws should be made. How many more laws regarding specific circumstances should there be?

Each company should try to have their own business ethics code, which should be followed specially by the upper management. It is a form of self-regulation, but it will all depend on the company to follow it.

7 0

3 years ago