Answer:
Expected value is 5.5
Explanation:
Expected value = sum of X*P(x)
= 1/4*2 + 1/4*4 + 1/4*6 + 1/4*10
= 0.5 + 1.0 + 1.5 + 2
.5
= 5.5
False. Phishing is usually considered emails that are sent that look genuine but are actually from scammers trying to obtain personal or financial information.
Answer:
$99.09
Explanation:
Calculation for What is Tricki's expected price when it begins trading ex-rights
Using this formula
Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]
Let plug in the formula
Expected price=$100-[($100-$90)÷(10+1)]
Expected price=$100-($10÷11)
Expected price=$100-$0.91
Expected price=$99.09
Therefore Tricki's expected price when it begins trading ex-rights will be $99.09
Answer:
After tax cost of debt is 4.85%
Explanation:
The starting to computing the after tax cost of debt is to calculate the yield to maturity on the bond .
The yield to maturity on the bond can be computed using the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the time to maturity of 30 years multiplied by 2 since the bond is paying interest on semi-annual basis
pmt is the semi-annual interest receivable by investor which 6.0%/2*$1000=$30
pv is the current market price :$1000*98% =$980 (100-2%),1% deducted for discount,1% for issue cost
fv is the face value of $1000
=rate(60,30,-980,1000)
rate=3.07%
The 3.07% is the semi-annual YTM, whereas the annual YTM 3.07%
*2=6.14%
After tax cost of debt=YTM*(1-0.21)
=6.14%*(1-0.21)
=4.85%
Answer:
d. Consumer price index
Explanation:
Consumer price index in any country consists of goods and services that are used in day to day activities by consumers e.g. daily food items, utilities, transportation etc. The index is used to measure the increase in weighted average prices of the constituents over a particular time.
Option A is price index for producers that measures the increase in price of goods and services that are typically used by different producers for their output.
Option B is an analysis that is used to assess the trends of any economy. This analysis is performed by government economists, officials and government to make informed decisions about future actions. Individuals have no use of the index.
Option C Gross domestic product (GDP) deflator is a price adjustment to GDP of current year to depict the actual growth in value of goods and services produced in a particular year. GDP deflator is a reduction of inflation rate from nominal rate of increase in GPD.
