A sort of financial product sold to investors is a corporate bond, which is issued by a business. The investor receives a predetermined amount of interest payments at either a fixed or variable interest rate in exchange for providing the firm with the money it requires.
The bond "reaches maturity" when it stops making payments and the initial investment is refunded.
The ability of the corporation to repay the bond often serves as its security, and this ability is based on its expectations for future revenues and profitability. Physical assets of the corporation may occasionally be utilized as collateral.
A state, municipality, or county may issue municipal bonds as a debt security to pay for capital projects like building roads, bridges, or schools. They can be compared to loans given to local governments by investors.
Municipal bonds are particularly appealing to those in higher income tax brackets because they are frequently exempt from federal taxes and the majority of state and local taxes (for residents).
To learn more about Corporate Bond and Municipal Bonds here
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I don’t know what are you asking, is this multiple choice. Please explain more
B. Decreases
if demand goes down, nobody is buying anything, so the need to produce/manufacture is down
Answer:
The value of the stock at start-up = $67.5
Explanation:
According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return
This principle can be applied as follows:
The value of stock today is the present value of the future return discounted at the required rate of return
The return can be computed as the ROE × Book value of share
Return = 15%× 30 =4.5
Price of stock today = D× (1+g)/r-g
D= current return, g- growth rate, r-required rate of return
DATA: D= 4.5, g= 5%, r= 12%
PV = 4.5× (1.05)/(0.12-0.05)
= 67.5
The value of the stock at start-up = $67.5
Because all people ( the public ) can fully enjoy this good/service without competing for it.
