Based on the information about the debt obligations, to avoid the winner's curse, your bid should not be larger than $3 million. Therefore, it's false.
<h3>What are debt obligations?</h3>
It should be noted that debt obligations simply means the debt securities that are issued by companies in regards to money borrowed.
The firms that fail to meet their debt obligations are immediately auctioned off to the highest bidder in Sweden. In such a case, the current managers are often the high bidders for the company.
In such situations, to avoid the winner's curse, your bid should not be larger than $3 million. This is because it's the approximate intrinsic value.
In conclusion, based on the information about the debt obligations, her correct option is false.
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Answer:
Net income $79,000
Explanation:
The net income of the Charlie's Chocolates shall be determined using the below mentioned calculations:
Revenue= $123,000
Less: Expenses= ($84,000)
Add: Dividend income= $40,000
Net income= $79,000
Answer: The machine costs 1,480,000 and has a life of 6 years with no salvage value. Which means that the depreciation cost of the machine each year is 1,480,000/6=246,666 and $52,000 operational cost which brings the annual cost to $298,666
But because the machines required rate of return is 16% we have to add in this as a cost as well so that annual cost will be
$298,666*1.16=$346,452
Explanation:
False. You don’t have to change it
Answer:
Instructions are below.
Explanation:
Giving the following information:
Investment= $4,500
Interest rate= 11.45%
For both options, we will use the following formula:
FV= PV*(1+i)^n
a. Number of years= 43
FV= 4,500*(1.1145^43)
FV= $476,053.37
b. Number of years= 33
FV= 4,500*(1.1145^33)
FV= $161,010.77
