Answer:
$2,365.02
Explanation:
For computing the price we have to applied the Present value formula i.e to be shown in the attachment
Given that,
Future value = 2,000
Rate of interest = 5.36% ÷ 2 = 2.68%
NPER = 14 years × 2 = 28 years
PMT = $2,000 × 7.230% ÷ 2 = $72.3
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the price of the bond is $2,365.02
The 14 years is taken from
= Year 2033 - year 2019
= 14 years
Answer:
c
Explanation:
because he got out 200 from his bank
The firm's debt-equity ratio is
.
Debt-equity ratio:
The debt-equity ratio serves as a gauge for how equally creditors and owners or shareholders contributed to the capital used by the company. The debt-equity ratio is the simple ratio of all long-term debt and equity capital in the company.
The phrase debt ratio refers to a financial ratio that assesses how much leverage a business has. The ratio of total debt to total assets, represented as a decimal or percentage, is known as the debt ratio. The percentage of a company's assets that are financed by debt is one way to understand it.
Debt-equity ratio = Equity multiplier ![$-1$](https://tex.z-dn.net/?f=%24-1%24)
As per Dupont analysis:
Return on equity = Profit margin ×Total assets turnover × Equity multiplier
Equity multiplier
Equity multiplier
(Approximately)
On substituting Equity multiplier
, we get
Debt-equity ratio ![$=1.269-1=0.269$](https://tex.z-dn.net/?f=%24%3D1.269-1%3D0.269%24)
Therefore, debt-equity ratio![$=26.9 \%$](https://tex.z-dn.net/?f=%24%3D26.9%20%5C%25%24)
Learn more about debt-equity ratio here brainly.com/question/11241200
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Answer:
Answer: To protect inner layers
Explanation:
Just took the test and it told me the correct answer
Answer:
c) Reject the project because the PI is .97
Explanation:
For recommendation, first we have to find out the profitability index which is shown below:
PI = Present value of Cash Inflows ÷ Initial Investment
= [($56,400 ÷ 1.155) + ($75,900 ÷ 1.1552)] ÷ $109,200
= [$48,831.17 + $56,895.49] ÷ $109,200
= $105,726.65 ÷ $109,200
= 0.97
Since as we can see that the profitability index is 0.97 and the required return is $1.06 so the project should be rejected