Answer: $868
Explanation:
Given the following :
Maturity (years) - - - - - - 1 - - 2 - - - 3 - - - 4
Spot rate (EAR) - - - - 1.4% - 2.8% - 3.6% - - 4.5%
What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?
Face value / ( 1 + spot rate)^p+1
Where P = year
=1000/(1+3.6%)^4
1000 / ( 1 + 0.036)^4
1000/(1.036)^4
1000/1.151964303616
=$868.08245
<span>This is the termination step in the "stages of change" model. This step is the final stage, in which the person is assured in the fact that the unhealthy behavior will not relapse. This typically only occurs after having integrated healthy behaviors into one's routine for at least 6 months without a relapse.</span>
Answer:
WACC without taxes = 6.84% (rounding up to two decimals)
WACC with a tax rate of 21%= 6.27% (rounding up two decimals)
Explanation:
To calculate WACC we need to know the weight's for equity adn debt:
Equity: 24,000,000 x 13 = 312,000,000
Debt 368,000,000
Value: 680,000,000
Debt weight's 368M/680M = 0.458823529
Equity weight's 312M/680M =0.541176471
Now we have he weights can calculate the WACC
Ke 0.09
Equity weight 0.458823529
Kd 0.05
Debt Weight 0.541176471
t 0 (as this is a pretax, tax is zero)
WACC 6.83529%
then, for b we are asked for a 21% tax rate, everything else remains unchanged:
if t = 21% then:
t 0.21
WACC 6.26706%
Answer:
Robin Corporation has a basis of $300,000 in the land.
Explanation:
Options are <em>"a. Erica does not recognize gain. b. Erica recognizes gain of $400,000. c. Robin Corporation has a basis of $100,000 in the land. d. Robin Corporation has a basis of $300,000 in the land. e. None of the above."</em>
<em />
Erica has a recognized gain of $200,000 which is the amount made payable to her through her receipt of the securities in Robin Corporation. The basis of the land to Robin would be equals to the basis Erica has in the land, $100,000 plus gain recognized by Erica $200,000 or $300,000.
Common between optimization using total value and optimization using marginal analysis is:
Both techniques require the conversion of all costs and benefits into a common unit of measurement.
What is the principle of optimization at the margin?
The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off.
Optimization using total value:
calculates the change in net benefits when switching from one. alternative to another.
optimization using marginal analysis:
calculates the net benefits of. different alternatives.
Total Value analysis :
has a wide range of applications. The analysis can be used to assess an organization's key impacts, or provide more detailed information such as an assessment of the life cycle impacts of a product.
marginal analysis:
is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.
Learn more about optimization:
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