Answer:
Bond Price = $580.2640476 rounded off to $580.26
Explanation:
A zero coupon bond is a kind of bond that does not pay interest to the bond holder like other bonds. Instead it is offered at a discount price and pays the par value at maturity. The discount price is calculated using a certain rate which can also be called the implied interest rate on this zero coupon bond. The formula to calculate the price of the zero coupon bond is,
Bond Price = Par Value / (1 + r)^t
Where,
- r is the interest rate or the discount rate
- t is the number of periods to maturity
Bond Price = 1000 / (1+0.115)^5
Bond Price = $580.2640476 rounded off to $580.26
When a company sponsors motor sports and other action-oriented events, it is utilizing the <span>events and experiences</span> mode of communication from the marketing communication mix.
When a company is sponsoring an event they are marketing themselves by being part of the event. They commonly have banners, tables, flyers and commercials that get their brand out by making it knowing they are sponsoring or going to be apart of an event.
Answer:
e. $6,000 preferred; $0 common.
Explanation:
The Preference Stock holders hold first preference during payment of dividends followed by the Common Stockholders.
Note also that Cumulative Preference Stock can have their dividends accumulated and paid in the latter years when funds become available.
Amount of Preference Stock dividend is fixed and calculated as follows:
9,450 shares × $10 × 5% = $ 4,725
2015
Cash dividends = $0
Preference Stock dividend Paid = $0
Preference Stock dividend Arrears = $ 4,725
No Common Stock Dividend
2016
Cash dividends = $6,000
Preference Stock dividend Paid = $6,000
Preference Stock dividend Arrears = $ 3,450
No Common Stock Dividend
Risk is the major factor to consider when deciding the funding, when funds are provided it is a risk that whether the funds will be received or not.
<h3>What is Risk?</h3>
Risk is the threat of being unable to receive the funds back, this is the highest level of risk, there are many small risks too, but the highest level is losing the money.
There could be a small portion of loss of money or sometimes the debtor completely defaults so not a single penny is retrieved.
Funding is a choice and the debtor should be chose according to the risk appetite of the investor or lender on money.
There are investors who are risk averse are not willing to take the risk and fine with the less amount of returns and there are risk takers, who want high returns in return of high risk of defaulting.
Learn more about Risk at brainly.com/question/27331968#SPJ1
Answer:
40%
Explanation:
The index of openness measures how much a country is exposed to international trade. It is calculated by this formula:
Index of Openness= (Exports(X)+Imports (M))/GDP
Index of Openness= (2 billion+2 billion )/10 billion
Index of Openness= 0,4*100=40%
