Answer:
Company HD has a higher return on equity (ROE) than Company LD, and its risk as measured by the standard deviation of ROE is also higher than LD's.
Explanation:
b
Explanation:
From the lessee's perspective, in the earlier years of a lease, the use of the:
capital method will cause debt to increase, compared to the operating method.Therefore option b is correct. As in early years of lease operating method is far more beneficial then the capital method.
<span>$11,320 with its interest rate over the year will be $13659.84. If Francine paid $436 each month for a year he would have paid off $5232 in a year. His debt balance would still be remanding at $8427.84. Francine will have paid off a large amount of his payment plan with the company however he will still be required to spend 18 months or so to pay back what he owes as there was a a 20.67% interest sum added to his payment plan with the company.</span>
Based on the selling price, the coupon rate, and the period, the yield to maturity will be <u>7.2%. </u>
<h3>What is the yield to maturity?</h3>
This can be found using a financial calculator or Excel worksheet.
Face value = 95% x 1,000
= $950
Coupon amount = 1,000 x 6% / 2 semi annual periods per year
= $30
Period = 5 years x 2
= 10 semi annual periods
Yield to maturity is = 3.6%
Annual yield to maturity:
= 3.6% x 2
= 7.2%
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