Answer:
yield to maturity is 6.37%
Explanation:
Face value (FV): $10,000
Coupon rate: 4.5% -> counpon received semi-annually = $10,000 * 4.5%/2 = $225 (PMT)
Tenor: 8 years -> number of payments (NPer): 16
The price of bond today is $8,840 (PV)
We can use excel to calculate the rate as YTM (yeild to maturity)
= Rate(Nper,PMT,-PV,FV) = rate(16,225,-8840,10000)
= 3.19% (semi-annual)
-> annual rate or YTM = 6.37%
Answer:
Option D
Explanation:
Begin Mode
N = ?
i = 9.25 12 = 0.7708
Principal = $125,500
PMT = $1,350
FV = 0
161.7058
= 162 (nearest whole number)
To better meet corporate goals this year, Donna, a CEO, is encouraging her managers to focus on the major functions of management, which include <u>"Planning, organizing, leading, controlling".</u>
Management includes significantly more than simply instructing others. Before any of you conclude that you want to do your supervisor's activity, how about we investigate a greater amount of what a director does.
The real capacities that a manager finishes can be classified into four unique capacities known as "Planning, organizing, leading, controlling." For a few of us, we just observe the last two - driving and controlling - yet you should realize that for each administrative conduct you do see, there is an equivalent sum that you don't. Behind the manager's shut entryway, he or she spends a decent arrangement of his or her opportunity arranging and sorting out, with the goal that he or she can successfully do the elements of leading and controlling.
Answer:
1. Jackson = $350,000 and Pearce = $1,020,000
2. Pearce
Explanation:
The formula to compute the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure
But for this question, the formula would be
= Cash flow from operating activities - Cash investment in property & equipment
1. For Jackson, it would be
= $500,000 - $150,000
= $350,000
For Pearce, it would be
= $1,500,000 - $480,000
= $1,020,000
2. If we see and compare the free cash flow, the Pearce has better cash flow due to the high cash flow from operating activities
Answer:
The dream car will cost $70,875 in 6 years time
Explanation:
Here, we are interested in calculating the amount a car will cost if we know the annual appreciation rate of the cost and we decide to wait for some years to purchase the car in question.
To calculate the cost at that time, let’s we shall be using a modification of the compound interest formula.
The cost at that time will be;
C = I(1 + r)^t
Where C is the cost after six years which is unknown
I is the present cost which is $62,200
r is the appreciation percentage = 2.2% = 2.2/100 = 0.022
t is the time which is 6 years
Substituting these values in the modified equation, we have;
C = 62,200(1 + 0.022)^6
C = 62,200(1.022)^6
C = $70,875.44
To the nearest whole amount, it should be $70,875