Answer:
$86.20
Explanation:
Total return from stock = Current price * expected return
Total return from stock = 80*14%
Total return from stock = $11.20
Dividend already realized = $5
Capital gain = $11.20 - $5
Capital gain = $6.20
End of one year price = Beginning price + capital gain
End of one year price = $80 + $6.20
End of one year price = $86.20
Therefore, at the end of one year price is $86.20
Answer:
interest rate = 15%
value of the bond will decrease
Explanation:
given data
face value = $5,000
time = 5 year
annual coupon payment = $150
solution
we get here interest rate on the borrowed funds that will be as
interest rate = 
× 100
put here value we get
interest rate = 
× 100
interest rate = 15%
and
when bond issued at interest rate = 3 %
but market interest rate 4%
so seller will reduce price of bond less than the face value
because we will look for atleast 4% payout when bond matures
so value of the bond will decrease
Answer:
variable cost of producing is $72,200
Explanation:
given data
total costs = 7,900
production @ $12
fixed = $22600
to find out
variable cost of producing each bat
solution
we know here that
total costs at 7,900 production @ $12 then that would be
= 7,900 × 12 = 94,800
so now we can say variable will be here = $94,800 - $22600
so variable = 72200
hence variable cost of producing is $72,200
Answer: $47,065.06
Explanation:
When interest is compounded continuously, the formula is:
Future value = Principal * <em>e</em>^(rate * time period)
= 2,000 * <em>e⁰.³² ˣ ¹⁰</em>
= $49,065.06
Amount of interest earned:
= $49,065.06 - 2,000
= $47,065.06
