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galben [10]
4 years ago
12

Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent probability of being priced

at $1,050 one year from today. The bond is also callable at any time at $1,010. What is the expected value of this bond in one year?
Business
1 answer:
AnnZ [28]4 years ago
8 0

Answer:

Explanation:

40% probability that bond will be priced at $950

60% probability that bond will be priced at $1050

Expected value of the bond in one year:

(Probability*Price of bond) + (Probability * Callable price bond)= (0.4*$950)+(0.60*$1010)=$986

So, expected value is $986

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Changes in net operating working capital should not be reflected in a capital budgeting cash flow analysis because capital budge
Ede4ka [16]

Answer:

The correct answer is False.

Explanation:

Net working capital, or "Working Capital" is simply the difference between current or current assets and current or short-term liabilities of a company.

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6 0
3 years ago
Which of the following statements is/are FALSE, all else the same?
xz_007 [3.2K]

Answer:

I. Present values increase as the discount rate increases.

and

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3 years ago
"Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Austria. Both subsidiaries frequently
OverLord2011 [107]

Answer:

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____ 16. a decrease in the price of domestically produced nuclear reactors will be reflected in
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