Answer:
The YTM is 6.45%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 7% = $70
Selling price = P = $1,038.50
Number of payment = n = 9 years
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $70 + ( $1,000 - $1,038.5 ) / 9 ] / [ (1,000 + $1,038.5 ) / 2 ]
Yield to maturity = [ $70 - $4.28 ] / $1,019.25 = $65.72 /$1,019.25 = 0.0645 = 6.45%
When treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
Given that the treasury stock is purchased for an amount greater than its par.
We are required to find the effect of the purchase of treasury stock for an amount greater than its par on the total shareholders' equity.
Treasury stock is basically known as treasury shares or reacquired stock, and refers to previously outstanding stock that is bought back from stockholders by the issuing company. The result of issuing treasury stock is that the total number of outstanding shares on the open market decreases. Shares of a company are a part of total shareholders' equity and because shares are issued for security, it will decrease the total shareholders;equity.
Hence when treasury stock is purchased for an amount greater than its par then the total shareholders' equity decreases.
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Answer:
c
Explanation:
usually when ppl have to reserve things it's usually booked
The more firms get from obligation as opposed to issuing stocks, the more it can diminish the aggregate cost of capital in light of the fact that the enthusiasm from obligation is duty deductible which will help reduce the aggregate cost of capital. In any case, no firm can get from obligation everlastingly in light of the fact that, at one point in time, extra obligation financing will make the aggregate cost of capital increment rather than decline. So firms will get in view of their own enhanced capital structure to limit the aggregate cost of capital however much as could reasonably be expected. Also, in light of this upgraded capital structure, there is a point of confinement to how much a firm can keep getting from obligation.
The new manufacturing plant of BMW vehicles will be engaged in the process of mass production.
<h3>What is mass production?</h3>
The process of production, wherein a large proportion of goods or inventories are produced by a business organization to reduce the costs of production, is known as mass production.
Hence, option B states about mass production. Complete question has been added in the image for reference.
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