Answer:
Proofread for punctuation errors (it's a must!!), Jot down reasons that explain the bad news (I think), Organize your ideas (I think)
Explanation:
I think: Jotting down the reasoning helps/support the information (specifically) the bad news. Organizing your ideas helps to keep everything you write on track and ideas you want to mention always start from check-point A to check-point B and so forth.... (It's my thoughts of an answer)
Depending on the supply and demand of equity, a bond’s price can vary, thus the premium or discount price.
For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell equity. On the other hand, if the interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.
Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply by adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond.
The dividend discount model (DDM) is a procedure for valuing the price of a stock by using the predicted dividends and discounting them back to the present value. If the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.
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Answer:
= $2,748
Explanation:
Number of shares purchased = 400
Price per share (a year ago)= $24.15
Total price paid a year ago = 400*$24.15 = <em>$9,660 </em>
Annual dividend per share = $1.82
Total dividend earned = 400 * $1.82 =<em> </em><em>$728</em>
Price per share (today)= $29.20
Proceeds from sale of shares today = 400*$29.20 = <em>$11,680</em>
Next, find total dollar return;
<em>Total dollar return</em><em> = </em>Total dividend earned + Proceeds from sale of shares today - Total price paid a year ago
= <em>$728+ $11,680 - $9,660 </em>
<em>= $2,748</em>
Answer:
e. The company will take on too many high-risk projects and reject too many low-risk projects.
Explanation:
By using the WACC for discounting purposes in case of the higher risk projects the net present value would be greater in such cases and also the high discount rate is applied. It is easily accepted but at the same time it also rise the organization risk
Therefore in the given case, the option e is correct and the same is to be considered
Answer:
$14.42
Explanation:
Please kindly check attachment for the step by step solution of the given problem.
