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ruslelena [56]
4 years ago
12

A bond's current market value is equal to the present value of the coupon payments plus the present value of the face amount.a.

Trueb. False
Business
1 answer:
blondinia [14]4 years ago
3 0

Answer:

The present value of a bond equals present value of annual coupon and present value of the face value of the bond. The correct answer is A.

Explanation:

In this case, we will obtain the present value of annual coupon by discounting the coupon at the present value of annuity factor for the bond duration. We will also obtain the present value of the face value of the bond by discounting the face value at the present value factor for the bond maturity.

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Microsoft presently pays no dividend. You anticipate Microsoft will pay an annual dividend of $0.60 per share two years from tod
Scorpion4ik [409]

Answer:

The value of this stock today should be $6.22

Explanation:

The company will start paying dividends 2 years from today that is at t=2. The dividends received 2 years from today can be denoted as D2. The constant growth model of DDM will be used to calculate the price of this stock at t=2 as the growth rate in dividends is constant forever.

The price at t=2 will then be discounted back to its present value today to calculate the price of this stock today.

The price of this stock at t=2 will be,

P2 = D2 * (1+g) / (r - g)

P2 = 0.6 * (1+0.04)  /  (0.12 - 0.04)

P2 = $7.8

The value of this stock today should be,

P0 = 7.8 / (1+0.12)^2

P0 = $6.218 ROUNDED OFF TO $6.22

7 0
4 years ago
Read 2 more answers
A macro factor underlying the trend toward greater globalization is:
gavmur [86]

Answer: Option (D) is correct.

Explanation:

A macro factor underlying the trend toward greater globalization is the decline in trade barriers since the end of world war II. One stage toward the pattern of globalization is that expelling the hindrances of exchanging merchandise and different things since the world war II for example since 1950s. Additionally another factor for globalization is changes in innovation.

6 0
3 years ago
Twitter allows companies to reach consumers with ________.
ratelena [41]
Twitter allows companies<span> to promote their products in short messages known as tweets limited to 140 characters, therefore, the answer that would best complete the given statement above would be option B. </span>Twitter allows companies to reach consumers with s<span>hort, personal messages. Hope this answers the question.</span>
5 0
4 years ago
Read 2 more answers
When companies try to entice customers to make purchases by offering special incentives or excitement-building programs, includi
stealth61 [152]

Answer:

<em>Sales Promotion</em>

Explanation:

The method of order to persuade a potential client to purchase the product is sales promotion.

Sales promotion is meant to be used as a short-term tool to boost sales – as a means of creating long-term customer loyalty, it is rarely acceptable.

Many offers for sales are intended for customers.

5 0
3 years ago
The net current asset investment (ncai) is defined as the change in current assets minus the change in sum of the accounts payab
-Dominant- [34]

The net current asset investment (NCAI) is defined as the change in current assets minus the change in the sum of the accounts payable and accruals. - True.

Net current assets refer to the difference between the aggregate amount of all current assets and the Aggregate amount of current liabilities. It is also known as working capital or shareholder's equity. It is regarded as an important parameter for determining an organization's financial health on a balance sheet.

The net current assets are the tangible assets which encompass cash, inventory, and receivable, which denotes the money owed to a company. There is a positive working capital ratio when the net current assets are sufficient enough to pay the current liabilities. The opposite of this situation represents a negative working capital ratio.

Learn more about current assets: brainly.com/question/10322678

#SPJ4

7 0
2 years ago
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