Answer:
Note: <em>The complete question is attached as picture below</em>
1a. The one year spot rate can be calculated using the one year zero bond.
PV * (1 + S1) = FV
1 + S1 = 1000 / 900
S1 = 1.1111 - 1
S1 = 0.1111
S1 = 11.11%
1b. PV of the 2 year bond = $950
Annual coupon = 1000 * 5% = $50
950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2
950 = 50 / 1.1111 + 1,050 / (1 + S2)^2
1,050/ (1 + S2)^2 = 950 - 45 = 905
(1 + S2)^2 = 1050 / 905
1 + S2 = 1.160221/2
S2 = 7.714%
1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2
Price of the 2 year zero bond = 1,000 / 1.1602
Price of the 2 year zero bond = 861.9203586
Price of the 2 year zero bond = $861.92
I think it depends on how people think of you and how much money you get paid, but I would say being with others. Just because it said you were working as a team. I would not consider "a want" in this situation.
Answer:
The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)
Explanation:
There are 3 key elements of working capital. These are;
- Inventory
- Accounts payable
- Accounts receivable
Given;
increase in inventory = $8,000
increase in Accounts payable = $2,500
Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500
= -$5,500
Answer:
The correct answer is letter "B": Internal customers.
Explanation:
Internal customers are not necessarily employees or customers who work inside the organizations, but they usually do. These people have a certain relationship with the firm and one need from another so their jobs can be done. In the case of employees, they rely on others' roles so their responsibilities can be performed.
Answer:
We can use the present value of an annuity formula to determine the annual distribution. I'm assuming that your distributions will be made in a similar manner to an annuity due (the first payment happens when you retire).
annual distribution = principal balance / PV annuity factor
- principal balance = $2,000,000
- PV factor annuity due, 8%, 15 periods = 9.24424
annual distribution = $2,000,000 / 9.24424 = $216,350.94
if instead, the first distribution is received at the end of the first year of retirement, then the annual distribution will be:
annual distribution = principal balance / PV annuity factor
- principal balance = $2,000,000
- PV factor ordinary annuity, 8%, 15 periods = 8.55948
annual distribution = $2,000,000 / 8.55948 = $233,659.05
