Answer:
A - "15 y/o"
or
B - "19 y/o"
(There are two types of this question for just choose which one is on it)
Answer:
The stock price is 38.63
Explanation:
We use the gordon model to calculate the horizon value and with htat the value of the stock:
D1 = 2.60 x 1.04 = 2.704
rate of return 11% = 0.11
grow rate = 4% = 0.04
P0 = 38.62857143
The taxes should be ignored as the gordon model do not include them in the calculations
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer: Incremental innovation ( answer for both the blanks)
Explanation: In simple words, incremental innovation refers to the process under which small improvement are made to the current practices of business. Such improvements through innovation results in better products and services offerings.
Such small changes however occur in large volumes and can easily revolutionize any industry.
Answer:
Depreciation: $4,000.00
Variable costs : $914.81
Explanation:
The value of the car when new = $19,860.00
Values after two years =$11,860.00
Accumulated depreciation for two years
= $19,860.00 - $11,860.00
=$8,000.00
Assuming straight depreciation method, depreciation each of the two years
=$8,000.00/2
=$4,000.00
Variable costs are the cost that changes with usages. In this case, variable costs are gas and oil, lube, and miscellaneous.
Variable costs = $845.96 + $68.85
Variable costs = $914.81
