Human capital increase throughout a career because related jobs develop skills for a specific field of work. Humans can develop skills and gain knowledge through the field of work and improve these skills, if they have the passion to develop it.
so c
Answer:
8.99%
Explanation:
For this question we use the PMT function that is presented on the excel spreadsheet. Kindly find it below:
Given that,
Present value = $975
Future value = $1,000
Rate of interest = 9.25% ÷ 2 = 4.625%
NPER = 25 years × 2 = 50 years
The formula is shown below:
= PMT(Rate,NPER,-PV,FV,type)
The present value come in negative
So, after solving this, the PMT is $44.96
Now the annual PMT is
= $44.96 × 2
= $89.92
So, the coupon interest rate is
= $89.92 ÷ $1,000
= 8.99%
Answer:
D. lowers the discount rate but not if it auctions more credit
Explanation:
Discount rate adjustment and Federal Reserve's auction have the following effects on reserves.
Discount rate adjustment: a <em>higher discount rate</em> will encourage investment in the US economy, thus leading to <em>increased reserves</em> as investment inflows increase.
On the other hand, a <em>lower discount rate</em> encourages investment outflow into other jurisdictions with higher yields, <em>thus reducing reserves</em>.
Auction: <em>auctioning more credit</em> will result in the movement of investment flows into the Federal Reserve (<em>an increase in reserves</em>) as investors invest in auctions. Vice versa.
Therefore, a mix of lower discount rate and not auctioning more credit will result in lower reserves.
Answer:
Value of Operations Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 10%. The company's weighted average cost of capital is 18%. What is the terminal, or horizon, value of operations
Terminal value = $1,783,333.33
Explanation:
Terminal value = FCF3/(WACC � g2)
FCF3 = FCF2 x 1.07 = $100,000 x 1.07 ? $107,000
= $107,000/(.13 - .07)
Terminal value = $1,783,333.33
Answer:
$12,000 and $6,000
Explanation:
For computing the dividend, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate × number of years
= 1,000 shares × $100 × 6% × 2 years
= $12,000
Out of $18,000, the $12,000 will be paid to preferred stockholders and the remaining $6,000 will be paid to common stockholders
