Answer:
3.37%
Explanation:
M = 100l/R.
M = 100 x $254,000 / $7,548,000 = 3.3651...
Rounding to the nearest hundredth, we get the net profit margin is 3.37%.
Answer:
E) incomplete market and product protocol.
Explanation:
Kimberly-Clark's Avert Virucidal failed in test marketing, because the researchers in charge of product development failed to clearly define how it would satisfy consumers' wants and needs. The idea itself wasn't bad, but the concept testing was poorly done. During concept testing, the marketing researchers must determine if the consumers understand the product's idea or not, and obviously that didn't happen. The product does satisfy consumers' needs and if the marketing process was properly done, they would have probably accepted the product.
Answer:
the project's MIRR is 13.84 %
Explanation:
MODIFIED INTERNAL RATE OF RETURN (MIRR)
-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.
-MIRR assumes a reinvestment rate at the end of the project
The First Step is to Calculate the Terminal Value at end of year 3.
Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)
= $450 x (1.09) ^ 2 + $450 x (1.09) ^ 1 + $450 x (1.09) ^ 0
= $534.65 + $490.50 + $450.00
= $1,475.15
The Next Step is to Calculate the MIRR using a Financial Calculator :
(-$1,000) CFj
0 CFj
0 CFj
$1,475.15 CFj
Shift IRR/Yr 13.84 %
Therefore, the project's MIRR is 13.84 %.
Answer: Option D
Explanation: In simple words, normal cash flows refers to those cash flows which have one initial investment at the beginning followed by a stream of inflows while in case of non normal cash flows the stream keeps changing from inflows to outflows.
Normal cash flows have only one IRR as there can only be single rate at which NPV will be zero while in case of Non normal there are two IRR due to uneven stream.
Thus, we can conclude that the correct option is D.
Answer: The bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Explanation:
1) In order to find out the number of bonds issued we need to divide 750,000 (Total ) by 1000(Face value of each bond).Total number of bonds issues therefore are 750.
2) A 12 percent convertible bond means that the bond pays a coupon of 120 ( 0.12 * 1000) every year.
3) Each bond is convertible into 25 shares , which means if one bond is converted into common stock, the bond holder can earn $1750. We calculate this number by multiplying the number of shares which is 25 into the current market price of the shares which is 70.
4) Also the company is offering an extra $500 per bond for converting it which means (500/25) an extra $20 per share.
5) So in total the bondholder by converting a bond and selling the shares he gets by converting it can earn $2250 per bond which they bought for a $1000 and gives them 120$ of interest every year.
6) SO to conclude the bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
