Answer: Option <u>" C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. "</u> is generally true of all bonds.
Explanation: The negotiation of bonds in the open market can lead to a negative return on the bonds if the price of the bonds is negotiated with a sufficient premium. Remember that bond prices change inversely with the yield of a bond, the higher the price of a bond, the lower the yield. At some point, the price of a bond may increase enough to imply a negative return for the buyer.
The answer is beneficial. A small research displays that allowing a fever run its course may decrease the span and relentlessness of such sicknesses like colds and flu. As for the worry among parents that fevers can have damaging effects, these occurrences are very occasional. The brain has an interior controlling mechanism that stops fevers caused by contaminants from receiving higher than 105 or 106 degrees.
Answer:
$65.37
Explanation:
Calculation for how much are you willing to pay today to purchase one share of the company's stock
Using this formula
P/0 = D0 ( 1 + g ) / R-g
Let plug in the formula
P/0 = $2.60 (1 + .056) / .098 - .056
P/0 = $2.60 (1 .056)/0.042
P/0=$2.7456/0.042
P/0=$65.37
Therefore how much are you willing to pay today to purchase one share of the company's stock will be $65.37
Answer:
A) $560 million
Explanation:
First lets calculate the NPV of the cash stream by this investment,
PV Cash stream = Cash flow/ (r-g), where r = avg cost of capital and g = growth of the cash stream.
PV = 50 / (0.09 - 0.04) = $1000 million
We assume that external finance issuance costs are payable as a part of initial outlay of the project and so,
Total initial outlay = 420 + 20 = $440 million
NPV of the project then,
NPV = 1000 - 440 = $560 million
Hope that helps.
Refrained from making commitments to its partners and ensured that they do the same.
A strategic alliance is supposed to be two or more companies working together to achieve a common goal while still maintaining their independent company identity, but if they fail to manage that relationship then the should refrain from making promises or goals they cannot keep.
