True! companies examine the demographics of people in a population, then selectively pick out a demographic among the many for whom they want to target their products and services at
Answer:
The correct response is Option b (1.60%).
Explanation:
According to the question,
Initial investment,
= $50,000
Perpetual annual cash flows,
= $800
Now,
The interest rate will be:
= 
On substituting the given values, we get
= 
= 
i.e.,
= 
Answer:
5.4%
Explanation:
Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupon that is paid quarterly. The bond currently sells for $900.90, and the company’s tax rate is 40%. What is the component cost of debt for use in the WACC calculation
Face value of bond = coupon amount / interest rate
1000 = 80 / 8%
Therefore 900.9 = 80 / revised interest rate
multiply both sides by the 'revised interest rate
revised interest rate x 900.9 = 80
Hence, revised interest rate = 80 / 900.9 = 9%
Secondly if the company’s tax rate is 40%, the component cost of debt for use in the WACC calculation = kd (1 - t)
where:
kd = Cost of debt
t = tax rate
Therefore cost of debt for use in the WACC calculation = 9% (1-0.4) = 5.4%
Julie is focused on the control managerial function when she measures performance and corrects as necessary. There are five types of management functions and they are planning, organizing, directing, coordinating and control. In the control stage it allows managers to determine how much or how little control over the organization and their employees they wish to have.
Answer:
A. Take $1 million now.
Explanation:
A. If we take $1 million now the present value of the money is $1 million.
B. If we choose to take $1.2 million paid out over 3 years then present value will at 10% will be;
$300,000 + $300,000 / 1.2 + $300,000/ 1.44 + $300,000 / 1.728
$300,000 + $250,000 + $208,000+ $173,611 = $931,944
The present value of option B is less than present value of option A. We should select option A and take $1 million now.
