Answer:
5. 11.1%
Explanation:
the options for this question are missing:
- 5%
- 7.8%
- 10%
- 10.5%
- 11.1%
I prepared the following equation:
$100,000 = $45,000(1 + i)³ + x(1 + i)⁵
There is something that we must remember about zero coupon bonds, and that is that they are sold in thousands. This equation is complex, but there is an easier way to solve it. We can plug in the options to determine which % will result in a possible answer.
The answer is 11.1%, since the other options resulted in numbers which are not even close to a thousand.
$100,000 = $45,000(1.111)³ + x(1.111)⁵
$100,000 = $61,709.88 + 1.2763x
$38,290.12 = 1.2763x
x = $38,290.12 / 1.2763 = $30,000
Answer:
rs=14.68%
F=15%
re=16.56%
Explanation:
using the constant growth model:
where P0 is the current stock price
D1 is the dividend expected at the end of the 1st year
rs is cost of retained earnings.
Rearranging to make rs subject of the formula:
if Evanec issues new stock, they will only net $31.45 down from $37 per share due to floatation costs. The difference, ie $37-$31.45 = $5.55 is due to floation costs.
The percentage floatation costs (F) are 
alternatively, one can recognise that 
and F = 15%
Cost of new common stock re is calculated as follows:
<u>Answer: </u>True
<u>Explanation:</u>
To maintain the competitive advantage of the business the managers of international business adapt to local adaptation strategy. International markets have different languages and culture it is necessary to promote business in the local language to reach the target market accordingly.
The multinational companies have their offices, distribution and production in different countries but they maintain same set of policies and procedures which makes decision making quick and easier. Through this way they maintain the global consistency.
Answer: The pressure to succeed creates opportunities that reward unethical decisions.
Explanation: "bad barrels" has attempted to identify characteristics of organisations that make them particularly vulnerable to tolerating or even encouraging destructive behavior. Organizations can become "bad barrels" because the pressure to succeed creates opportunities that reward unethical decisions. Bad barrels explains misbehaviour in the workplace.
