The correct answer is Neutral stance
Answer:
New Bond Price = $875.6574005 rounded off to $875.66
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or interest rate will be,
<u>For 3 year bond:</u>
Coupon Payment (C) = 1000 * 0.05 = $50
Total periods (n) = 3
r or YTM = 0.10 or 10%
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.1)^-3) / 0.1] + 1000 / (1+0.10)^3
Bond Price = $875.6574005 rounded off to $875.66
Answer:
This customer is looking for long term growth, so common equities are an appropriate investment rather than long term bonds. Since the customer does not believe in active asset management, a passive approach is best - that is, an index fund that has very low ongoing fees.
Explanation:
hope this helps
Answer:
4.8
Explanation:
The formular to find the receivable turn over ratio is
= net credit sales/average.
account receivable
The values given are:
Net credit sales for the year=$252,000
Company account receivable balance at the beginning of the year= $48,000
Company account receivable balance at the end of the year= $58,000
To find the average account receivable we will sum both balance and divide by 2
= 48,000+58,000/2
= 106,000/2
= $53,000
Average account receivable is $53,000
Therefore, receivable turn over ratio is
= $252,000/$53,000
= 4.8
Thus, Beverage international's receivables turn over ratio is 4.8