Answer:
a. $880.74
b. 13 years
Explanation:
a. Conversion ratio = Current Value of bond / Conversion price = 1,000 / 93.4 = 10.71
Conversion price of bond = 10.71 × 28.60 = $306.31
Coupon = Par value of bond * Coupon rate = $1,000 * 6.4% = $64
Present value of straight debt is calculated below:
Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]
= $64*11.93 + $117.46
= $763.28 + $117.46
= $880.74
.
Therefore, the minimum value of bond is $880.74
b. Conversion ratio = 10.71
Current stock price = $28.6
Suppose number of year the stock will take to reach above $1,140 is t.
Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t
$1,140 = $28.6 * 10.71 * (1.108)^t
(1.108)^t = 3.7218
t = 12.8145 year.
t = 13 years
Medium of exchange - you can buy stuff with it
store of value - you can save it up and buy stuff with it later
measure of value - you can say that your parent's how was worth $200K before the crisi.
Answer:
D. Customer-perceived value
Explanation:
Customer-perceived value -
It refers to the method of marketing , where the needs and wishes of the consumers are considered to be very important for the good and services to be successful , is referred to as customer - perceived value .
As when the company creates any product , the likes and dislike of the consumers are always given the priority , in order to get the best results .
Hence , from the given information of the question ,
The correct option is D. Customer-perceived value .
