Answer:
P = 9359.8
Explanation:
Given:
- YTM = 7.75% = 0.0775
- F = 1000
- Coupon rate = 7.0 percent => Coupon payment is: 1000*7% = 70
As we know that, the formula to find out YTM is:
YTM = [C + (F-P/n) ] / (F+ P) / 2
<=> 0.0775 = [ 70 + (1000 - P/14)] / (1000+P)/2
<=> 0.0775(1000+P) /2 = 70 + (1000 - P/14)
<=> 0.0775(1000+P) = 140 + 2(1000 - P/14)
<=> P = 9359.8
So the price of the $1,000 face value bond is 9359.8
Answer:
Leverage buyout
Explanation:
Leverage buyout refers to the acquisition of another company using debt as the main source of financing the deal. The acquiring company borrows from various sources and will often use the assets of the acquired company as collateral. In leverage buyout, the acquiring entity borrows up to 80 percent or more and finances the balance with its equity.
The use of debt enhances the rate of return of the acquiring firm. Greystone Group is using 5 million of its funds and borrowing 20 million. The debts represent 80 percent of the cost of acquisition. The acquiring entity can achieve a higher rate of return by using as little of its funds as possible.
Answer:
c. profit center
Explanation:
Based on the information provided within the question it can be said that the segment is most probably accounted for as a profit center. This is a specialty department formed inside an organization that deals with generating revenues and profits or losses. These departments are completely monitored and controlled since they are the main driving force of the company brand.
Answer:
$52,000 is the correct answer.
Explanation:
