Answer: Decision tree
Explanation: A support tool that uses a tree like model for decision making by evaluating the possible consequences by taking into consideration chance event outcomes, resource cost and utility. Largely used in non parametric effective machine, it is a learning modelling technique for regression and classification problems.
Answer:
A Bond's current market value represented by
is the present value of a bond as on today. Present value of a bond is it's future cash flows in the form of coupon payments and principal repayment discounted at investor's expectation in the market also referred to as Yield to maturity(YTM).
Present value of a bond is given by the following equation,

where C= Annual coupon payments
YTM = Yield to maturity/ cost of debt/ market rate of return on similarly priced bonds
RV = Redemption value of bond
n = number of years to maturity
<u>a. A bond's coupon rate is higher than it's yield to maturity, then the bond will sell for more than face value.</u>
Hence, if the company pays more interest than what is paid in the market on similarly priced bonds, such bonds shall sell at more than their face value.
<u>b. If a bond's coupon rate is lower than it's yield to maturity, then the bond's price will increase over it's remaining maturity.</u>
Similarly, if a bond pays lower rate of interest than the market rate of interest on similarly priced bonds, the bond shall sell at lower than it's face value and the price will increase over the remaining life of such bonds.
Answer:
C. Strategic plan
Explanation:
Strategic planning involves developing a business strategy, method of implementing the business strategy and finally evaluating the business strategy in order to see if it has achieve its goal. It is characterized by strategy formulation, implementation and evaluation. In this case, Kia is contributing to the strategic plan by allocating company's resources to meet the long term goals of the company and defining long term activities, that is, developing a business strategy.
Answer:
Option B is correct.
<u>A horizontal line</u>
Explanation:
Then for m > 2 , the income offer curve would be a horizontal line.
Income offer curve define as the curve which depicts the optimal choice of two goods at different levels of income at constant price. It is otherwise known as "Income Expansion Path"
Answer:
$8000 (increased)
Explanation:
Given:
Current sales = $600,000
Variable cost = 80% of Sales = $600,000 x 80% = $480,000
Fixed cost = $130,000
Computation of current Operating Income :
= Current sales - Variable cost - Fixed cost
= $600,000 - $480,000 - $130,000
Net Income = -$10,000
Computation of Operating Income(After new sales) :
= New sales - New Variable cost - Fixed cost
= ($600,000 + $40,000) - 80% of ($600,000 + $40,000) - $130,000
= $640,000 - $512,000 - $130,000
Net income after new sales = - $2,000
Change in income = Net income after new sales - Net Income before new sales
= -$2,000 - (-$10,000)
= $8000 (increase)