Answer:
Explanation:
a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.
b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond
The return on one year bond is = 5.2%
The price of 4 year bond today
Price of 4 year bond today = 807.22
If yield curves is unchanged, the bond will have 3-year maturity and price will be
If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04
Return
Return = 5.8%
The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)
Answer:
c: increase in the bargaining power of suppliers of a critical input
Explanation:
Five Forces Framework by Porter's can be regarded as a method involving analysis of competition in a business. It's analysis dream through
industrial organization economics determine forces that are responsible for competitive intensity. The forces are;
✓potential new market entrants
✓number and power of a company's competitive rivals
✓ influence of suppliers, customers,on company's profitability.
It should be noted that Consolidation among fuel providers serving airport facilities is viewed in the five forces model of competition as a increase in the bargaining power of suppliers of a critical input.
Answer:
704076 $
Explanation:
Exact statement of the question is:
<em>May 3, 2007, Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2007, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)</em>
Solution:
Fro 3rd May to October 1st. 2017 there are 151 days
But 365 days = 1 year
==> 151 days = 151× 1/365 =0.414 years
But we use 1 year as one term
==> 1year = 1T
==> T = 0.414
R= 6.86
P= 685000
A=?
We use formula for the term:
A= P
Where A= ammount at the end of term
P= Loan amount
R= Rate of interest
T= No. of terms
Putting values in this formula;
==> A= 685000×
==> A= 685000 × 1.02784938489=704076 $
To complete the statement above, research indicates that the
efficiencies of managing through centralized control may be ‘greater’ when
operating the environments of divisions in multidivisional organizations are
relatively ‘stable and predictable’. It is because when there is a presence of
stable and predictable in operating the environments of division in
multidivisional organization, there will likely be a result of their managing
to be more effective because it is not destructive but stable.
Answer:
3
Explanation:
Price - earnings ratio refers to the ratio between the Market price and the Earning per share. The formula for price - earning ratio is as follows:
Given that,
Book value per share = 24.00
Market Value per share = 18.00
Earnings per share = 6.00
Par Value per share = 4.00
Dividend per share = 1.00
P/E ratio = Market price ÷ EPS
= 18 ÷ 6
= 3.0
Therefore, the price-earnings ratio would be 3.
