Answer:
Rapidly rising prices not only affect the price consumers pay, they also affect the cost businesses have to pay for materials and inventory. When replacement inventory costs more than the inventory you just sold, it can lead to inventory shortages.
Explanation:
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Answer:
1. What is the TYM? 7.64%
2. What is the YTC?: 7.36%
3. 3. If interest rates are expected to remain constant, what is the best estimate of the remaining life left for RTE Incs bonds? : 8 yrs
As the YTC is lower than YTM the company will purchase the bonds
4. If RTE issued new bonds today, what coupon rate must have to be issued at par? 7.64%
The bonds will need to be issued at market to be at par.
Explanation:
We solve for the YTM and YTC considering they are the sum of the coupon payment and maturity or call price which maches the current market price:
YTM
C 90.000
time 18
rate 0.076433667
PV $864.7491
Maturity 1,000.00
time 18.00
rate 0.076433667
PV 265.60
PV c $864.7491
PV m $265.6006
Total $1,130.3497
YTC
C 90.000
time 8
rate 0.073634141
PV $529.9297
Maturity 1,060.00
time 8.00
rate 0.073634141
PV 600.42
PV c $529.9297
PV m $600.4203
Total $1,130.3500
Capital goods tend to move in anticipation of the business cycle, turning up in anticipation of recovery and turning down at signs of economic weakness.
Answer:
c.Product customization
Explanation:
What is Product customization?
Its a type of strategy that companies implement to attarct more customers. It usually implies the modification of designs, uses and/or characteristics of their items to satisfy the customer’s needs or desires.
This policy has the benefit of giving the company the opportunity to stand out from the competitors by fine-tuning items and services. Therefore the company gains a bigger portion of market share
In this case, KFC, altered their global formula in order to gain more acceptance in the Japanese market
Answer:
The balloon payment for this loan would be $581,213.92. This can be calculated by taking the original loan amount of $1,000,000, multiplied by the interest rate of 9%, then multiplied by the difference in the amortization period (20 years) and the loan term (7 years). This equals $540,000. Finally, add the original loan amount to the interest amount, resulting in $1,540,000. This is the total amount due at the end of the loan term, or the balloon payment.
Explanation: