Answer:
The price of King Noodles' bonds is $970.66
Explanation:
Coupon payment = 1000 x 7.5% = $75 per year = 75/4 = 18.75 per quarter
Number of periods = n = 8 years x 4 quarter each year = 32 quarter
Yield to maturity = 8% per year = 8% / 4 = 2% per quarter
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = $18.75 x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$18.75 x [ ( 1 - ( 1 + 2% )^-32 ) / 2% ] + [ $1,000 / ( 1 + 2% )^32 ]
Price of the Bond = $18.75 x [ ( 1 - ( 1.02 )^-32 ) / 0.02 ] + [ $1,000 / ( 1.02 )^32 ]
Price of the Bond = $440.03 + $530.63
Price of the Bond = $970.66
Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment-This statement is False
Explanation:
Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment
The above statement is false, since it is a bad investment because after figuring out the stock's value you get $108.15, which is less than what you initially paid for it.
Answer:
This proposal will not work.
Explanation:
All taxes work the same way, it doesn't matter if they are payroll taxes or taxes on goods or services. In this case, labor is the service provided by the employees (suppliers) and the employer is the consumer. A tax increase will reduce the demand for labor, and therefore the equilibrium price of labor (wage) will also decrease. If wages decreases, then workers are not going to be better off, on the contrary they will be worse off. This tax increase will lower both the wage and the employment level.
Answer:
Re-intermediation
Explanation:
Re-intermediation is the method applied by most businesses in using the internet to bring together new customers for a business. The advent of technology can afford business owners the possibility of eliminating physical intermediaries in a business. For example, house agents help people who are seeking for new places to live in, find houses easily. Through the internet, however, landlords can directly advertise their vacant houses, thus eliminating the agent relationship which would have served as an intermediary.
So, when established manufacturers by-pass Amazon (which is an intermediary between buyers and sellers) by adding online services to their existing offerings, they have done a re-intermediation.
Answer:
25th house's Marginal cost is $250,000.
Explanation:
Given:
Total cost of 24 houses = $4,800,000
Total cost of 25 houses = $5,050,000
Marginal cost = ?
Computation of marginal cost:
Marginal cost = Change in total cost
Marginal cost = Total cost of 25 houses - Total cost of 24 houses
Marginal cost = $5,050,000 - $4,800,000
Marginal cost = $250,000
So, we say that 25th house's marginal cost will be $250,000 .
