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3 years ago

Education is a good investment for an individual if

Business

1 answer:

zepelin [54]3 years ago

7 0

Answer:

The correct answer is the option E: All of these answers are correct.

Explanation:

On the one hand, the discount rate is the name given to the interest rate charged to the commercial banks and also to other financial institutions for the loans they take from the Federal Reserve Bank of The United States.

On the other hand, the education is always a good investment for the individuals in the cases where the workers with higher levels of education tend to earn higher wages and that obviously stimulates the action of study for one's future and also in the cases where the discount rate is favourable to the person and that will happen when is above zero or the number it releases shows that the present value of the benefits are equal or higher than the present value of the costs of the investment.

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The exercise price of the options is $100 per share, all options are European and the stock does not pay any dividend. The call

Ber [7]

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + $\frac{100}{(1+r)^t}$ = S + P .....................1

here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1

C + $\frac{100}{(1+r)^t}$ = S + P

25 + $\frac{100}{(1+0.5)^2}$ = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

6 0

2 years ago

LO 7.2What operating budget exists for manufacturing but not for a retail company?

belka [17]

Answer:

Production Budget

Explanation:

Production Budget is usually substituted with Purchasing budget for a retail company.

The operating budget usually consist of the:

sales budget,

production budget,
manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted with Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they substitute the number of units to be purchased, to the number of units to be produced.

8 0

3 years ago

You are given the following information for Cleen Power Co. Assume the company’s tax rate is 40 percent. Debt: 5,000 6.6 percent

Misha Larkins [42]

Answer:

WACC = 8.84%

Explanation:

Face value= $ 1000 (assume)

Current price = 1000* 109% = 1090

semianual interest =1000 *.066*6/12 = 33

semiannual months = 20 *2 = 40

Yield to maturity of bonds = [semiannual interest +(face value -current price) /months]/[(face value+price)/2]

= [33 + (1000- 1090 )/40 ]/[(1000 +1090)/2]

= [33 + (-90/40) ] / [2090 /2]

= [33 - 2.25 ] /1045

= 30.75 /1045

= .0294 or 2.94% semiannually or (2.94*2) =5.88 % annually

After tax cost of debt = 5.88 (1- .40 ) = 3.528 %

Market value of bond = 1090 *5000 = $ 5450000

b)cost of equity =Rf +[beta*market premium ]

= 4.6 + [1.12 * 5]

= 4.6 + 5.6

= 10.20 %

market value of equity = 380000*56 =$ 21280000

Total market value of debt and equity =5450000 +21280000

= $ 26730000

weight of debt = 5450000/26730000 = .2039

weight of equity = 21280000 /26730000 = .7961

WACC = (after tax cost of debt *WD)+(cost of equity *We)

= (3.528 * .2039 )+(10.20 * .7961)

= .7194 + 8.1202

= 8.84%

7 0

3 years ago

A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new gro

katovenus [111]

Full question attached

Answer and Explanation:

Please find attached

7 0

3 years ago

Successful bridging requires a fundamental reformulation of the problem such that the parties are no longer squabbling over thei

VladimirAG [237]

The answer to the question will be true

5 0

3 years ago