Answer:
YTM is 9.625%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Face value = F = $1,000
Coupon payment = $1,000 x 8% = $80/2 = $40 semiannually
Selling price = P = $876.40
Number of payment = n = 12 years x 2 = 24
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $40 + ( 1000 - 876.4 ) / 24 ] / [ (1,000 + 876.4 ) / 2 ]
Yield to maturity = 9.625%
Answer:
$90,500
Explanation:
The computation of initial cash outlay is shown below:-
initial cash outlay = New machine cost + Increase in working capital - After tax salvage value
= $145,000 + $12,000 - (($75,000 - ($75,000 - $50,000) × 0.34
= $145,000 + $12,000 - $66,500
= $90,500
Therefore for computing the initial cash outlay we simply applied the above formula.
Answer:Explained below
Explanation:
Auditor is one who conducts audit.Auditors are professionals who evaluate the reports of companies to safeguard the rationality and legality of their financial records. They can also take action in consulting role to recommend possible risks .
The primary Purpose could be Classification and Understandability & Valuation and Allocation of resources or assets
Answer:
The answer is computer scientist
Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value = 
=
= 29.69 ≈ $29.70
