Answer:
$1,197.94
Explanation:
For determining the current dollar price we have to applied the present value formula which is to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 5.7% ÷ 2 = 2.85%
NPER = (13 years - 1 years) × 2 = 24 years
PMT = $1,000 × 8% ÷2 = $40
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After applying the above formula, the current dollar price of the bond is $1,197.94
Answer:
Reducing principal at a faster pace increases the overall interest paid on a loan.
Explanation:
When a loan is being repaid a repayment schedule is used. Repayment schedule contains proportion of principal and interest to be paid by the borrower.
In a scenario where principal to be paid reduces at a faster rate, the interest must also reduce. Interest is a function of the principal. The higher the remaining principal the higher interest rate and vice versa.
So the statement - Reducing principal at a faster pace increases the overall interest paid on a loan, is false. Rather interest to be paid will reduce.
They mean "The Olive branch and arrows denote the power of peace & war which is exclusively vested in Congress."
Answer:
Strategic management
Explanation:
Definition:
Strategic management is the identification, selection and implementation of an organisations long term goal and its objectives. It takes into account the concerns and existence of all stakeholders.
Three components of strategic management:
- Strategic Analysis - takes into account factors affecting the internal and the external environment of the business.
- Strategic Choice - involves the formulation, evaluation and selection of strategic options.
- Strategic implementation - involves implementing and monitoring the strategies selected by the business.
Answer:
$48,000
Explanation:
The working capital is the business asset that is used for day to day operation. It can be calculated as follows,
Working capital = Current assets - Current liabilities
So,
Working capital = $396,000 - $348,000 = $48,000
It can be verified with the following equation
Fixed assets + Working Capital = Shareholder Equity + Long term Liabilities
Which is,
Fixed assets + Working Capital = $512,000 + $48,000 = $560,000
Shareholder Equity + Long term Liabilities = $298,000 + $262,000 = $560,000
Hope that helps.
