1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Doss [256]
3 years ago
13

(Expected return calculation) "DEF" is a firm that is traded on NASDAQ. On 1/1/2014, the company issued 10,000 zero coupon bonds

. Each bond has a face value of $100 and matures on 1/1/2019. The bonds are the only debt of the company. A bond rating company estimated the total value of the DEF's assets on 1/1/2019 as follows:
Probability Value of DEF assets on 1/1/2019
0.2 2,000,000
0.3 1,750,000
0.4 1,200,000
0.1 1,000,000

Two years after the bond issue, on 1/1/2016, the bond rating agency reexamined the DEF Company and estimated the total value of the firm's assets as follows:

Probability Value of DEF assets on 1/1/2019
0.05 2,000,000
0.25 1,750,000
0.65 1,200,000
0.05 1.000.000
a. What will be the influence of the new probability distribution on the expected return on DEF bonds?
b. What will be the influence of the new estimation on the DEF stock price, assuming the cost of capital for the stock holders is 15%?
Business
1 answer:
ohaa [14]3 years ago
6 0

Answer: I not the best with math so I want to say 1,000,000

Explanation:

10,000 zero bonds at 100 face value would be about 1 million plus 15 percent is would be 150,000

You might be interested in
Why did Guardbark want people to not disturb the trees?
vichka [17]

Answer:

Why did the Guardbark want people to leave trees alone? ... He wanted the trees to be left alone because they give us oxygen and are the habitats of lots of diverse species.

I found this answer on google so I hope this helps.

3 0
3 years ago
Read 2 more answers
The focus of a(n) __________ strategy is high sales at low cost; the high sales are typically achieved by coming up with a produ
sp2606 [1]

Answer:

Mass marketing

Explanation:

Mass marketing -

It refers to as the marketing strategy , where the focus is on the complete market rather than some specific group , is referred to as mass marketing .

It is the reverse of niche marketing .

Mass marketing requires advertising method like , television , radio , newspaper , magazine etc.

As they tries to capture large area of consumers .

Hence , from the given information of the question ,

The correct answer is mass marketing .

5 0
3 years ago
Patricia is a team leader. When looking at an e-mail from one of her team members, Patricia noticed that the e-mail was sent at
zalisa [80]

The options in this question are missing; here are the options:

Which aspect of creating a positive organizational culture is Patricia utilizing?

A. Rewarding more than punishing

B. Building on organization strengths

C. Emphasizing individual growth

D. Building on employee strengths

E. Providing extrinsic rewards

The answer to this question is A. Rewarding more than punishing

Explanation:

One important factor in creating a positive organizational culture is to make employees feel appreciated and recognizing their efforts. This can be achieved through the rewarding more than punishing strategy, which implies focusing on positive actions and aspects rather than on negative aspects. Besides this, as part of the recognition of positive aspects employees or members of a team are rewarded, which includes verbal praise.

This strategy is used by Patricia because she has decided to focus on the effort the employee made by sending the e-mail at 9:30 p.m. because this showed the effort he was making and how much time he is dedicating to the job. Also, as part of recognizing the employee's effort, Patricia uses verbal praise, which a reward.

3 0
3 years ago
Jensen Cleaning Service uses the listed accounts. (Some of the accounts will be explained in Lesson 2-3.) Prepare two T accounts
Westkost [7]

Answer:

Cash Sales Transaction

Journal Entry

Dr.  Cash   100,000

Cr.   Sales  100,000

Cash received and sales has been recorded due to the nature of Cash and Income, Cash and Sales is entered as Debit and credit respectively.

* For Journal posting MS excel file is attached which has T account with above transaction posted in it.

Explanation:

Download xlsx
5 0
3 years ago
A firm characterized as a price-taker:
ololo11 [35]

Answer: Option E

Explanation: A perfectly competitive company is known as a price-taker, because the competition of competing firms causes them to embrace the prevailing market price of equilibrium.

If a company raises the price of its product by as much as a penny in a perfectly competitive structure,then it will lose all of its sales to other firms. In such structures the prices are determined by the marker forces of demand and supply.

Hence from the above we can conclude that the correct option is E.

3 0
4 years ago
Other questions:
  • In which business stage do you decide whether a business opportunity is a great fit for you personally
    8·2 answers
  • On January 2, 2020, Vaughn Manufacturing traded in an old delivery truck for a newer model. The exchange lacked commercial subst
    10·1 answer
  • Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 200 pounds per mont
    15·1 answer
  • A stock is expected to pay $ 1.55 per share every year indefinitely and the equity cost of capital for the company is 8.8​%. Wha
    9·1 answer
  • Campbell's soups maintain a low-level of advertising during the entire year, but it advertises heavily during the winter months
    6·1 answer
  • Business at Korey's Comics has been good, and Korey expects the same business next month. However, due to an increase in busines
    7·1 answer
  • Which of the following statements about restrictive covenants is TRUE?
    9·1 answer
  • A cylindrical candle that is 15 cm high has a diameter of 8 cm. Sketch
    8·1 answer
  • A corporation doing business in the state in which it is incorporated is considered to be a / an _____________ corporation. a. A
    6·1 answer
  • On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the availab
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!