Answer:
As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67
Explanation:
The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,
coupon payment = 5000 * 0.067 *1/2 = $167.5
Semiannual YTM = 7.8 *0.5 = 3.9%
Semi annual periods to maturity = 8 * 2 = 16 periods
Old Price = 167.5 * [( 1 - (1 + 0.039)^-16 + 5000 / (1+0.039)^16
Old Price = $4677.19
New semiannual YTM = 8.1% / 2 = 4.05%
New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16
New Price = $4593.67
Answer: A sales lead is identified via marketing and advertising, referrals, social media, networking and outreach, product trials, or consultations. A lead does not become a prospect until they've been qualified to determine their level of interest and fit as a potential customer.
Explanation:
Answer:
Begin and end your presentation with motivating context
Explanation:
Just as the hourglass is shaped with a large top, narrow middle and a large bottom. Presentations should start on a general and motivational context.
The middle of the presentation should focus on some details and procedures on how to achieve set goals and objectives of the topic. This is where practical steps are given to the audience.
The end of the presentation should again be a motivational context again. The audience is made to see the big picture of the situation.
Answer:
a. Increase in inventory - <u>an operating activity subtraction from net income</u>
This is an operating activity as it has to do with the day to day business of the company and its operations. It is a subtraction from Net income because an increase in inventory means that more cash was spent to buy the inventory.
b. Issuance of common stock - <u>a financing activity</u>
Financing activities are those that have to do with raising capital for the business so when stock is issued and Equity is raised, it is a financing activity.
c. Decrease in accrued liabilities - <u>an operating activity subtraction from net income</u>
Liabilities are also in relation to the firm's operations so they are operating activities. This will be a subtraction from Net income because cash was used to pay off liabilities which is what reduced them.
d. Net income - <u>operating activity addition to net income</u>
Net income is derived from the operations of the business so is an Operating activity. It will increase net income evidently.
e. Decrease in prepaid expense - <u>operating activity addition to net income</u>
Prepaid expense is in relation to expenses which is an operating activity. It will be an addition to net income because as an asset, it reducing means that cash was not paid to acquire it.
Answer:
Alternatives Airport at X Airport at Y
Buy land at X 6 -14
Buy land at Y -21 12
Buy land at X and Y -15 -2
Do nothing 0 0
probability 0.55 0.45
Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3
Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15
Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15
Payoff for doing nothing = 0
The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.
