Answer:
Interest rate = 4%
Explanation:
Given:
Face value of bond = $5,000
Annual coupon payment = $200
Interest rate = ?
Computation of interest rate on bond:
Interest rate = (Annual coupon payment / Face value of bond ) × 100
Interest rate = ($200 / $5,000) × 100
Interest rate = (0.04) × 100
Interest rate = 4%
Therefore, annual interest rate on bond is 4%
It would be letter C - <span>To state the reason for the existence of a business.
</span>A mission statement<span> of a company defines what an organization is, why it exists, its reason for being. It is a sentence that states the company's function and the business's goals and philosophies. </span>
The idea that investors on average have earned a higher return from common stocks than from Treasury bills supports the view that: there is a relationship between risk and return.
<h3>Which investment kind normally yields the highest return?</h3>
Stocks have historically yielded investments with the highest average rate of return. However, stock is one of the riskiest investments because there are no assurances of earnings when you purchase shares.
<h3>What is the relationship between an investment's risk and projected return?</h3>
The return needed to entice investors to buy an asset is higher the riskier the investment is, and vice versa. It is clear from the link between risk and return that investors are risk averse; they need HIGHER rates of return to be persuaded to invest in riskier securities.
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Answer:
In order to find the value of a preferred stock we discount its future payments at the required yield on the stock. Because the preferred stock is perpetual in nature, meaning it pays the same amount forever, we can find it's value by dividing its dividend by its required yield. So in this case the dividend is 6.5 and the required yield is 14% so the value of the preferred stock is
6.5/0.14= $46.42
Explanation:
The questions that Maryann is having defines her price objective of the price setting process.
Mary is at the stage where she has to set the prices for her product. In order to do this she has to think about her intended market and also think of her cost of production.
Some of the pricing objectives that she has to think about here are:
- The price that her competitors have set in the market
- Her profit
- Price stability
- How to achieve market share
<u>Complete question:</u>
MaryAnn has just opened a new food-truck business selling homemade crepes. She is confident in the quality of her product and she must now decide on the right price. Should she attract new customers through lower prices or highlight the quality of her products through higher prices? These questions represent which step of the price-setting process?
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