To calculate the current yield of bonds.
We have the given par value of $1000, a market price of $750 and an interest rate of 6%.
Formula of current yield:
Yield = (interest rate * par value)/(market price) * 100%
= ((0.06 * $1000)/$750) * 100%
= ( $60/$750) * 100%
=0.08 * 100%
= 8%
Answer:
E. If the market risk premium increases by 1%, then the required return will increase by 1% for a stock that has a beta of 1.0.
Answer:
PART A
(1) To reduce wastages
(2) To increase profit margin
(3) To reduce cost of operations.
PART B
(1) NO,he is not included
(2) Because he is unable to work or be gainfully employed.
Explanation:
Layoff is a manpower management process through which Organisations down size their manpower strength or number in order to meet certain specified Objectives. Layoffs usually takes place in Organisations that are not meeting their Strategic objectives such profit making,cost reduction and Control etc.
Unemployment is a term used to describe the inability of a person or group of persons who are willing and have the capacity to work but could not secure gainful employment in an economy.
MR. SMITH DOES NOT HAVE THE CAPACITY TO WORK,HENCE HE CAN NOT BE INCLUDED IN THE UNEMPLOYMENT STATISTICS.
Answer:
V(t) = $ 1.5 billion for 2007
V(t) = $1.5 billion, 295 million. For 2012
Doubling time = t = 177.69 yrs
Explanation:
a).
V(t) = 1.5e^(0.039t)
For the first year 2007, t= 0
V(t) = 1.5e^(0.039*0)
V(t). = 1.5e^0
V(t) =. 1.5*1 = 1.5
V(t) = $ 1.5 billion for 2007
For 2012 that is 5 years after,t= 5
V(t) = 1.5e^(0.0039*5)
V(t) = 1.5e^ (0.0195)
V(t) = 1.5(1.019691367)
V(t) = 1.5295
V(t) = $1.5 billion, 295 million.
b). Doubling time is when the value of the export is 1.5 *2 =$ 3 billion
3 = 1.5e^(0.0039t)
3/1.5= e^(0.0039t)
2 = e^0.0039t
In 2 = 0.0039t
0.693= 0.0039t
t = 177.69 yrs