Answer:
12.41%
Explanation:
yield to call = {coupon + [(call value - market value)/n]} / [(call value - market value)/2]
0.05 = {150 + [(2,900 - market value)/8]} / [(2,900 - market value)/2]
0.05 x [(2,900 - market value)/2] = 150 + [(2,900 - market value)/8]
0.05 x (1,450 + 0.5MV) = 150 + 362.5 - 0.125MV
72.5 + 0.025MV = 512.5 - 0.125MV
0.15MV = 440
MV = 440 / 0.15 = $2,933.33
Claire's total returns = $150 (coupon) + ($2,960 - $2,933.33) = $176.67
Claire's return on investment = $176.67 / $2,933.33 = 6.02273%
effective annual yield = (1 + 6.02273%)² - 1 = 12.41%
Historical returns have generally been higher for stocks of small firms as (than) for stocks of large firms.
<h3>What is
stocks?</h3>
Stock in finance refers to the shares into which a corporation or company's ownership is divided. A single share of stock represents fractional ownership of the firm based on the total number of shares.
A stock is a type of instrument that implies the holder owns a share of the issuing firm and is typically traded on stock markets. Corporations issue stock in order to raise funds to run their enterprises. Stock is classified into two types: common and preferred.
Stocks are ownership stakes in a publicly traded corporation. When you purchase stock in a corporation, you become a part-owner of that company. If a corporation has 100,000 shares and you purchase 1,000 of them, you own 1% of the company.
To know more about stocks follow the link:
brainly.com/question/25818989
#SPJ4
Hello !
Answer :
The Fisher formula is expressed as 1+R = (1 + r) x (1+ h) where R is the nominal rate, r is the real rate, and h is the inflation rate.
<h3>
Explanation:</h3><h3>Part (a):</h3>
Solved part is attached as an image.
<h3>
Part (b):</h3>
Let us first determine the amount required of each item to produce 1 bracket.
From the attached diagram, we can see that to manufacture 1 bracket, quantity of each item needed is,
Base = 1
Spring = 2
Clamp = 1 + 4 = 5
Housing = 2
Handle = (1 * 1) + (4 * 1) = 5
Casting = (1 * 1) + (4 * 1) = 5
Bearing = 2 * 2 = 4
Shaft = 2 * 1 = 2
Hence, for 50 Brackets, quantity of each item required will be,
Base = 1 * 50 = 50
Spring = 2 * 50 = 100
Clamp = 5 * 50 = 250
Housing = 2 * 50 = 100
Handle = 5 * 50 = 250
Casting = 5 * 50 = 250
Bearing = 4 * 50 = 200
Shaft = 2 * 50 = 100
<em>NOTE: The above quantities give exclusive quantities required for each item. In actual practice, we won't have to purchase base, clamp & housing separately as the will be assembled from their components which are already procured.</em>
<h3>Part (c):</h3>
As 25 bases are already in stock, parts for them will not be needed. I will refer the quantities subtracted due to this by indicating (B). Similarly, quantities subtracted due to clamps will be indicated as (C).
Base = 50 - 25 = 25
Spring = 50
Clamp = 250 - 100 - 25(B) = 125
Housing = 100 - (2*25)(B) = 50
Handle = 1 * 125 = 125
Casting = 1 * 125 = 125
Bearing = 2 * 50 = 100
Shaft = 1 * 50 = 50
Answer:
the current total contribution margin = 100 x 60% x ($80 - $20) = $3,600 per day
scenario 1: $10 discount
$3,600 = 100 x ?% x ($70 - $20)
$3,600 = $5,000 x ?%
$3,600 / $5,000 = ?%
occupancy rate = 72%
scenario 2: 10% discount
$3,600 = 100 x ?% x ($72 - $20)
$3,600 = $5,200 x ?%
$3,600 / $5,200 = ?%
occupancy rate = 69.23%
