Answer:
D) It is generally more expensive to obtain than primary data.
Explanation:
A) It may not exist.
Problem. Primary data may not yet be available due to its sensitivity of the primary data.
B) It may not be relevant
Problem. Published data may not be applicable to your region. For example published data for Asia might not be applicable to Africa.
C) It may not be impartial.
Problem. Primary data used to create the secondary data might not treated all rivals equally.
D) It is generally more expensive to obtain than primary data.
Not a problem. Secondary data is not expensive as compared to primary data.
E) It may not be current.
Problem. Primary data collected might be out of date thus can not be used recent decisions as many things would have changed.
The order of operations is necessary for simplifying numerical expressions because it ensures that the expression is simplified correctly through a series of steps proven to be efficient in simplification.
Answer:
Bond price= $1,210.4
Explanation:
Giving the following information:
Coupon rate= 0.079/2= 0.0395
YTM= 0.056/2= 0.028
Face value= $1,000
n= 13*2= 26
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond price= 39.5*{[1 - (1.028^-26)]/0.028} + [1,000 / 1.028^26]
Bond price= 722.67 + 487.73
Bond price= $1,210.4
Answer:
$18.33
Explanation:
The company just paid an annual dividend of $2.24
The dividend increase by 2.3% annually
= 2.3/100
= 0.023
The required return is 14.8%
= 14.8/100
= 0.148
Therefore the price that will be paid for one share of LBM stock can be calculated as follows
= 2.24 × (1+0.023)/(0.148-0.023)
= 2.24 × 1.023/0.125
= 2.29153/0.125
= $18.33
Hence $18.33 will be paid for one share of LBM stock
