Answer:
5.925%
Explanation:
For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% = $80
NPER = 20 year - 1 year = 19 year
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 7.50%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.50% × ( 1 - 0.21)
= 5.925%
Designing a supply chain that meets customer requirements and aligns with strategy to be more effective to be more responsive.
What is supply chain?
A supply chain is a group of people and businesses responsible for producing a product and getting it to the consumer. The raw material producers are the first links in the chain, and the last is the van that delivers the finished product to the customer. The importance of supply chain management can be seen in the reduced costs and improved productivity that come from an optimised supply chain. Companies work to enhance their supply chains in order to lower costs and maintain competitiveness. Each step taken to deliver a finished good or service to the customer is considered to be part of the supply chain. The process may involve obtaining raw materials, transferring them to the production stage, and then transporting the finished goods to a distribution facility or a retail location where the consumer may pick them up.
To learn more about supply chain
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Answer:
the value of the stock is $13.21 per share
Explanation:
The computation of the value of the stock is shown below:
The Value of the stock is
= Constant annual dividend ÷ discount rate
= $1.75 ÷ 0.1325
= $13.21 Per share
Hence, the value of the stock is $13.21 per share
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Explanation:
a)We find the portfolio weights first. For a two security portfolio
x2 = 0.625 and x1 = 0.375
Then
rp = x1r1 + x2r2
rp = (0.375 ´ 0.06) + (0.625 ´ 0.14)
= 0.11
= 11.0%
Hence, he can improve the expected rate of return without any change in the risk of the portfolio.
b)
The expected return is:
rp = x1r1 + x2r2
rp = (0.5 *´ 0.09) + (0.5 ´* 0.14)
= 0.115 = 11.5%
sP2 = (0.5)^2(0.10)^2 + 2*(0.5)(0.5)(0.10)(0.16)(0.10) + (0.5)^2(0.16)^2
sP2 = 0.0097
sP = 0.985 = 9.85%
Hence, he can never perform better by investing equal amount in bond portfolio and index fund. The expected return increases to 11.5% and standard deviation decreases to 9.85%.
Most contracts come to an end once certain contractual obligations are met.
