Answer:
Kari has employed the method of anchoring bias
Explanation:
Anchoring Bias is a bias where the person anchors his/her thinking based on a reference or starting point. For example, if we enter a store and see a shirt of $1000 and then a shirt for $100 we will perceive the second shirt as cheaper since we anchor our judgment based on the first shirt price we saw.
Answer:
Determine goals and objectives.
Explanation:
Emergency planning describes the different steps and procedures that should be carried out in a work environment to prevent accidents.
An emergency planning shows how commuted an organization is towards the safety of the employees. An emergency plan contains different measures that provides a level of safety for the workers and the facilities of the company.
The main objectives of emergency planning is to reduce the level of injuries and fatalities among the workers, and to also protect the working environment and community as a whole.
A good emergency planning process is very important to ensure the smooth running of the day to day activities in the company.
Answer:
Excessive aggregate demand in relation to an economy's production capacity.
Explanation:
- The demand and the pull is the upward movement in the prices that follows a shortage in supply. As per the economists, they describe it as the too many dollars that are followed by too few goods.
- Thus when the combined demand in the economy strongly is outweighed by the combined supply and thus the prices tend to go up. Hence the excessive increase of the demands pulls up the production capacity.
Answer:
d. 5.14%.
Explanation:
Calculation to determine the best estimate of the after-tax cost of debt.
First step
Based on the information given we would make use of rate formula in excel.
=rate(nper,pmt,-pv,fv)
Where,
nper= coupon every six months for 20 years = 40 coupon payments
Pmt =$1000*7.25%*6/12=$36.25
Pv = $875
Fv =$1000
Let plug in the formula
=rate(40,36.25,-875,1000)=4.28% semiannually
=4.28% *2=8.56% annually
Now let calculate the after tax cost of debt using this formula
After tax cost of debt=8.56%*(1-t)
Where,
t represent tax rate of 40%
Let plug in the formula
After tax cost of debt=8.56%*(1-0.4)
After tax cost of debt=5.14%
Therefore the best estimate of the after-tax cost of debt is 5.14%
The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.
<u>Explanation</u>:
- A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
- The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
- So the convexity of the bond is 61.810.
