Explanation:
1. A bond's face or maturity value is generally $1,000 and represents the amount borrowed from the bond's first purchaser.
2. A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants.
3. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a singing fund provision.
4. A bond's call provision gives the issuer the right to call, or redeem, a bond at specific time and under specific conditions.
<h3>Two advantages of budgeting;</h3>
i. Manage your money effectively.
ii. Monitor performance.
<h3 /><h3 /><h3>Two disadvantages of budgeting;</h3>
i. Time required.
ii. Gaming the system.
iii. Blame of outcomes.
Answer:
Price of share= $112.496
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return.
So we will discount the steams of dividend using the required rate of 16.0% as follows
Year Present Value
1 2.95× 1.28× 1.16^(-1)= 3.178
2 2.95× 1.28^2 × 1.16^(-2)= 3.591
3 2.95× 1.28^3 × 1.16^(-3)= 3.963
Year 4 and beyond
Present Value in year 3 =(2.95× 1.28^3× 1.064)/(0.28-0.064)= 68.568
Present value in year 0 = 68.56813227
× 1.16^(-3)= 43.92
Price of share =3.1788 + 3.591 + 3.963 +43.928
= 112.496
Price of share= $112.496
Answer: Arial. 12 and black
Explanation: It is the most professional and clear to read. It is very important to use fonts, sizes, and colors people can clearly read.