Ocean crossed during the middle passage

West Corp. issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bond

Nataliya [291]

Answer:

YTM is 4.94%

Explanation:

The yield to maturity is the return on the bond throughout the bond's tenure and can be computed using rate function in excel as shown below.

=rate(nper,pmt,-pv,fv)

nper is the number of coupons the bond has left to pay(23 years*2)

pmt is the semiannual coupon of the bond=$1000*5.3%*6/12=26.5

pv is the curren price=$1000*105%=$1050

fv is the face value of the bond

=rate(46,26.5,-1050,1000)=2.47%

2.47% is the semiannual yield

annual yield=2.47% *2=4.94%

7 0

2 years ago

which describes the economic role of a worker? a buys goods and services b provides goods and services c is uninterested in good

maria [59]

Answer: b provides goods and services

Explanation: I m pretty positive this is the ans bye

3 0

2 years ago

The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of

Delvig [45]

Answer:

Holding period return = 14.49%, Standard Deviation = 11.08 approx

Explanation:

Eco Scenario Dividend Stock Price HPR Prob Expected HPR

Boom 3 60 26 0.33 8.58

Normal 1.2 58 18.4 0.33 6.072

Recession 0.75 49 (0.5) 0.33 (0.165)

Expected HPR 14.49%

Calculation Of Standard Deviation

(A) (B) (A) - (B)

$P_{1}$ $P_{0}$ $D_{1}$ Given return Exp return d p $p.d^{2}$

60 50 3 26 14.49 11.51 0.33 43.718

58 50 1.2 18.4 14.49 3.91 0.33 5.045

49 50 0.75 (0.5) 14.49 14.99 0.33 74.15

Total $p.d^{2}$ = 122.91

wherein, d = deviation

p = probability

Standard Deviation = $\sqrt{Total\ p.d^{2} }$ = $\sqrt{122.91}$ = 11.08

Working Note:

Holding period return = $\frac{P_{1}\ -\ P_{0} \ +\ D_{1} }{P_{0} }$

Boom = $\frac{60\ -\ 50 \ +\ 3 }{50 }$ = 26%

Similarly, for normal = $\frac{58\ -\ 50 \ +\ 1.2 }{50 }$ = 18.4%

Recession = $\frac{49\ -\ 50 \ +\ 0.75 }{50}$ = (0.5)%

figure in bracket indicates negative return

7 0

3 years ago

Andrew, a project manager in a multinational company, accepts a very challenging project from his client as he feels that the em

shepuryov [24]

Answer:

Theory Y

Explanation:

In theory Y, managers have a positive and optimistic view of their employees. They assume employees are happy to work and that workers are motivated by attaining objectives. In theory Y, employees can work towards organizational goals through self- direction and self-control.

Theory Y assumptions allow employees to participate in solving organization problems. The managers consider employees are creative, imaginative and innovative people. In theory Y, managers adopt a consultative style of management.

5 0

2 years ago

The emphasis on keeping customers for long periods of time is the central focus of ______ value and the reason firms focus on cu

Archy [21]

Answer:

Customer Lifetime Value

Explanation:

Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.

It is a predictor of how well you are doing to retain your existing customers.

Why is it important?

suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.

$12*5*15= 900$ $

Subtract the advertising cost

$900-10=890$ $ This is your customer lifetime value

Now imagine what would have happen if we had to sell these belts to 75 different customers?

The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.

$75*10=750$ $

$900-750=150$ $

This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.

3 0

2 years ago