Answer:
The correct answer is option D,held-to-maturity securities include corporate notes and bonds.
Explanation:
Held-to-maturity securities are normally debt instruments purchased with aim of keeping them till maturity so as to collect the principal amount invested as well as the related interests,since they are not held for short-term gains,they are not reported at fair values.
Securities held for short-term to be realized in short-term are reported at fair values
Answer:
The price of the stock today is $34.13
Explanation:
The price of the stock that grows at two different growth rates can be calculated using the two stage growth model of DDM. The DDM requires to discount back the dividends to calculate the price of the share today.
The price of the stock today is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
P0 = 1.8 * (1+0.08) / (1+0.11) + 1.8 * (1+0.08)^2 / (1+0.11)^2 +
1.8 * (1+0.08)^3 / (1+0.11)^3 + [ (1.8 * (1+0.08)^3 *(1+0.05) / (0.11-0.05)) / (1+0.11)^3]
P0 = $34.127 rounded off to $34.13
Answer:
$0
Explanation:
Common fixed expenses are expenses that cannot be traced to any specific division, business unit or store/office within a larger company. In this case, each division has its own manager and assistant manager, but their salaries can be traced to the corresponding division, therefore, they cannot be considered common fixed expenses. Examples of common fixed expenses are the CEO's salary (or any other upper management or board of directors), their assistants or certain administrative costs that are incurred by them.
Answer:
group 1 Markup = 0.333
group 2 Markup = 0.25
group 1 price = $79.98
group 2 price = $75
Explanation:
given data
Group 1 elasticity of demand = -4
Group 2 elasticity of demand = -5
marginal cost = $60
to find out
optimal markups and prices under third degree price discrimination
solution
we get here Under Markup pricing that is for group 1 and 2 is
Markup is = 
.....................1
so for group 1 Markup = 
group 1 Markup = 0.333
and
for group 2 Markup = 
group 2 Markup = 0.25
and
price will be
price = ( 1 + markup) × Marginal cost ...................2
group 1 price = ( 1 + 0.333 ) x 60
group 1 price = $79.98
and
group 2 price = ( 1 + 0.25 ) x 60
group 2 price = $75
