Answer:
Yield to maturity is 3.94%
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 9% = $90/2 = $45 semiannually
Selling price = P = $1080
Number of payment = n = 10 years x 2 = 20
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]
Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%
Answer:
The value of the firm according to M&M Proposition I with taxes is $513,824.62
Explanation:
Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]
Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%
Value of firm = 62320 / 0.13 + 143500 x 0.24
Value of firm = 479,384.62 + 34,440
Value of firm = $513,824.62
Answer:
The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it
Explanation:
The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.
Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.
I think the correct answer from the choices listed above is option D. Having a low credit score can make it more difficult to obtain a car loan, open a new credit card and secure an apartment lease. <span>A </span>credit score<span> is a numerical expression based on a level analysis of a person's </span>credit<span> files, to represent the creditworthiness of the person. </span><span>Hope this answers the question. Have a nice day. </span>
Answer:
the weighted mean price per share is $38.76
Explanation:
The computation of the weighted mean price per share is given below:
= (200 shares × $37 per share + 270 shares × $36 per share + 490 shares × $41 per share) ÷ (200 shares + 270 shares + 490 shares)
= ($7,400 + $9,720 + $20,090) ÷ (960 shares)
= $37,210 ÷ 960 shares
= $38.76
Hence, the weighted mean price per share is $38.76
