The reason why the demand is extremely time-and-place dependent would be: <span>Because customers must be present for service to be delivered
</span>customers must be present for services businesses because Unlike merchandising business, service business focused on the enhance Customer's experience rather than focus on selling the product.
Answer:
b. controlling the money supply.
Explanation:
The main function of the federal reserve is to control the money supply. This is accomplished through expansionary or contractionary monetary policies, in which the Federal Reserve influences the amount of economy in the economy by controlling its supply. An open marketing policy, ie selling and buying securities, for example, is used to control the amount of currency in the economy.
Answer:
$6 million
Explanation:
If 25% of the firm is worth $1.5 million, then 100% of the firm will be worth $6 million (= $1.5 million x 4).
This is an all equity firm, which means it has no liabilities, and it is also a closely held corporation which makes it harder for a stockholder to sell his/her shares. Basically the fair value of the 1,000 shares is the money you can get from your fellow shareholders.
Answer:
(a) 9.9%
(b) 10.09%
The further explanation is given below.
Explanation:
The given values are:
Coupon payment
= $99
Price
= $1,000
(a)
The Yield to maturity (YTM) will be:
= 
where,
C = Coupon payment
P = Price
n = years to maturity
F = Face value
On putting the estimated values is the above formula, we get
⇒ 
⇒ 
⇒ 
%
(b)
Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.
= ![[99\times (1 + r)] + 1,099](https://tex.z-dn.net/?f=%5B99%5Ctimes%20%281%20%2B%20r%29%5D%20%2B%201%2C099)
Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:
Rate (r) Total proceeds Realized YTM (
)
7.9% 1205.8 9.8%
9.9% 1207.8 9.9%
11.9% 1209.8 9.99%
Now,
Overall proceeds realized YTM:
= 
= 
= 
= 
= 
= 
= 
%
