Answer:
The annual YTM will be = 0.063496 or 6.3496% rounded off to 6.35%
Explanation:
The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,
YTM = [ ( C + (F - P / n)) / (F + P / 2) ]
Where,
- C is the semi annual coupon payment in case of semi annual bond
- F is the Face value of the bond
- P is the current value of the bond
- n is the number of semi annual periods to maturity in case of the semi annual coupon bond
Assuming that the face value of the bond is $1000.
Coupon payment - semi annual= 1000 * 0.05825 * 6/12 = 29.125
Number of semi annual periods = 3 * 2 = 6
YTM - semi annual= [ (29.125 + (1000 - 985.63 / 6)) / (1000 + 985.63 / 2)
YTM - semi annual= 0.031748 or 3.1748% rounded off to 3.17%
The annual YTM will be = 0.031748 * 2 = 0.063496 or 6.3496% rounded off to 6.35%
Answer:
Mary and Ted need to determine the type of partnership business they plan to enter into, if it is a <em>General Partnership, Limited Partnership and Limited Liability Partnership.</em>
The type of partnership business will determine their individual liabilities, in the event the business folds up. Furthermore, In a bid for Mary and Ted to answer questions like,"What is the worst that could happen if we fail, they will need a partnership agreement, which states the terms of agreements of each partners.
Explanation:
Mary and Ted need to determine the type of partnership business they plan to enter into, if it is a <em>General Partnership, Limited Partnership and Limited Liability Partnership.</em>
The type of partnership business will determine their individual liabilities, in the event the business folds up. Furthermore, In a bid for Mary and Ted to answer questions like,"What is the worst that could happen if we fail, they will need a partnership agreement, which states the terms of agreements of each partners.
Answer:
The answer is C. The two primary reporting classifications of cash flows are inflows and outflows
Explanation:
Statement of Cash flows is prepared using cash basis i.e it recognizes outflow only when money goes out of the business and recognizes inflow only when money comes in. This is unlike accrual basis. So the primary reporting classifications are inflow and outflow.
Option A is incorrect because non cash transactions are reported in the statement. For example, depreciation under indirect method of preparing operating cash flow is a non cash transaction.
Option B is wrong because operating activities under cash flow statement are not the same as reported under income statement.
Option D is wrong because inflow and outflow are reported under all the three sections of statement of cash flow
Answer:
d. Evaluate segment attractiveness
Explanation:
The STP process helps to find your customers and decide the best way to target them. The step of the process that develops descriptions of the different segments is evaluate segment attractiveness as in this step the description of the segments along with market information and research results are generated to evaluate each segment.
Answer:
Option B. It is unrealistic
Explanation:
The reason is that the people have different likes which means we will never see 100 percent acceptance from the customers which might in the way of rejecting the offer of Gary. So the assumption that 50,000 cab drivers will purchase its product is truly optimistic which in other words is unrealistic assumption. So the option B is correct.
Option A is incorrect because the assumption is less qualitative as it doesn't relies on realistic assumption.
The cab drivers sales are relevant here but the sales assumption was unrealistic (Highly optimistic assumption) so the option C and D are incorrect.
Option E is also incorrect because the sales to cab drivers can be measure by initially directly selling 1000 cell phone to 1000 cab drivers which will give an actual idea of sales units expected, which means it is measurable.
