Ideally, management should compare its budget to Actual <span>performance every month in order to determine if the company is performing as expected.
By doing this, the management could create some sort of financial control to prevent the company from bleeding out its budget without gaining a sustainable amount of profit</span>
Answer:
The answer is
A.
accepting mistakes and rectifying them
Explanation:
Answer:
C) Yes, because the direct rates differ in all markets
Explanation:
₤1 buys €1.50 in NY, Tokyo, and London -> ₤1 = €1.50
₤1 buys ¥150 in NY, Tokyo, and London -> ₤1 = ¥150
⇔ €1.50 = ¥150
⇔ ¥100 = €1.50/1,5 = €1
$1 buys ¥100 in NY, Tokyo, and London - > $1 = ¥100
Tt clearly that €1 is different with $1.0 (as Reuter quoted today, $1.00 = €0.9030), so there’re opportunity for two-point arbitrage
.
Answer:
A.) 6.63%
Explanation:
Using a Financial calculator, key in the following inputs to solve for YTM;
Face value of the bond ; FV = 1,000
Price of the bond; PV= 103.3% *1,000 = -1,033
Total duration or time to maturity of the bond; N = 14 years
Use annual coupon rate to find Coupon payment (PMT);
Coupon PMT = coupon rate * Face value
coupon rate = 7% OR 0.07 as a decimal
Coupon PMT = 0.07 *1,000 = 70
Next, with these inputs, press on buttons; CPT I/Y = 6.631%
Therefore, the Pre-tax cost of debt = 6.63%
