Answer:
7 years to matures the bond
Explanation:
F=face value=1000
P=market price=bond price=394.47
r=yield to maturity=6.87%=semi annually, yearly =6.87*2=13.74 %
T= years of maturity=?
Formula= YTD= ( Face value/Bond price)∧1/T-1
.1374=(1000/394.47)∧1/T-1
1+0.1374=2.535∧1/T
1.1374=2.535∧1/T
1.1374=[(1.1374∧7)]∧1/T
1=7/T
T=7 years.
Answer:
Answer for the question :
""The Athletic Department of Leland University is considering whether to hold an extensive campaign next year to raise funds for a new athletic field. The response to the campaigın depends heavily upon the success of the football team this fall. In the past, the football team has had winning seasons 60 percent of the time. If the football team has a winning season (W) this fall, then many of the alumnae and alumni will contribute and the cam- paign will raise $3 milion. If the team has a losing season (L), few will contribute and the campaign will lose $2 million. If no campaign is undertaken, no costs are incurred. On September 1, just before the football season begins, the Athletic Department needs to make its decision about whether to hold the campaign next year.
(a) Develop a decision analysis formulation of this problem by identifying the alternative actions, the states of nature, and the payoff table.
(b) According to Bayes’ decision rule, should the campaign be undertaken?
(c) What is EVPI? "
is explained in the attachment.
Explanation:
Answer:
Yes the company must recognise the effects of this ruling.
Explanation:
As provided the law suit was initiated in the year 20x2, because of the activity happened in April 20x2.
Accordingly, company was already prepared for a liability of $100,000.
Whenever an event that occurs after the balance sheet is a mere confirmation to what was expected on balance sheet date, or is in alignment with things on record on the balance sheet date, it shall be provided in the balance sheet of that year.
In the given case the law suit was pending on the balance sheet date and was recorded as a liability then, now after the declaration by the judge, the additional liability of $20,000 shall be provided in the financial books of year 20x2.
Answer:
are all lagging measures of performance
Explanation:
Return on investment, residual income, and economic value added are all lagging measures of performance.
When it comes to divisional performance measures, Return on investment (ROI), residual income (RI), and economic value added (EVA) are all lagging measures of performance they link objectives with performance and present a common basis on which all divisional or branch managers in a decentralized organization, are measured.
A lagging indicator of performance is any measurable or observable variable (performance), that changes after a change has occurred in a target variable (returns).
Hence these methods are lagging methods because a manager can only be said to have performed when such manager has generated returns, revenue or economic value.
Answer: 12.6 %
Explanation: The rate of growth that a company expects to maintain for a long term is called sustainable growth rate. It is denoted by G. Sustainable
growth rate helps the analysts to determine at what stage the company is in its life cycle.
.
FORMULA :-
GROWTH = Retention ratio * return on equity
= ( 1 - Dividend payout ratio) * return on equity
= 0.9 * 0.14
= 12.6 %