He should go with his checking account because his savings is way more valuable
Is there a specific form you need it answered in or
Answer:
YTM = 8%
Explanation:
$100 per year up to 4 years means, each year, the FV = $100.
We know, Zero coupon bond = [Fair Value ÷ ]
As the 4-year annuity paying the different YTM in the previous three years, 4th year YTM will be -
Bond value = + + +
or, $334.57 = $94.3396 + $87.3439 + $79.3832 +
or, $334.57 - 261.0667 =
or, = ($100 ÷ $73.50)
or, 1 + YTM =
or, YTM = 1.08 - 1
YTM = 0.08 or 8%
Answer:
True
Explanation:
This is true and a pitfall because managers particularly those in investment businesses can take actions that benefit themselves or act based on self interests. This is because they are open to incentives and also have the know how so they can easily make changes. This is bad for real options analysis. It is an agency issue. These people act without even considering the interests of the organization or that of their employers.
Answer:
1. $28,000
2. $20,000
3. $18,000
4. $1,000
Explanation:
(1) Provided catering services for cash $28,000
It affects the cash balance negatively while affecting the retained earning balance positively.
(2) Purchase of land for cash $20,000
It affects the cash balance negatively while affecting the land balance positively.
(3) Payment of expenses $18,000
It affects the cash balance negatively while affecting the retained earning balance positively.
(4) Payment of cash dividends $1,000
It affects the cash balance negatively while affecting the retained earning balance positively.