Answer:
The maximum price we should be willing to pay for this IBM bond is $ 877.
Explanation:
The price of bond can be determine by discounting all future cashlows we will get from bond in form of interest payment or redemption amount using expected rate of return.
The detail calculation is given below.
Price = 1000 * Discount factor + annuity factor * 80
Price = 1000 * 0.386 + 80 * 6.145 = 878
Discount factor = (1+10%)^-10 = 0.386
Annuity factor = (1 - (1+10%)^-10)/10% = 6.145
Answer: 12.5%
Explanation:
Amount that will be raised with Equity = 65% * 5,700,000 = $3,705,000
This is more than the retained earnings so new equity will have to be issued at cost of 16%
Amount raised by debt = 35% * 5,700,000 = $1,995,000
Less than $2 million so cost of debt is 10%
WACC = cost of equity * weight of equity + weight of debt * cost of debt * ( 1 - tax rate)
= (16% * 65% ) + (35% * 10% * (1 - 40% tax))
= 12.5%
<span>The
graphical representation that summarizes the steps a consumer takes in
making the decision to buy your product and become a customer is called conversion funnel.</span>
Please I need answers to the ocean sound college question
Thank you...
Answer:
Present Value = $290.20
Explanation:
The present value of a future payment can be calculated with the following formula:
PV = FV / (1 + i)N
Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.
PV = Present Value = ?
FV = Payment = $4,400
i = 8.3% = 0.083
N = 20 - 6 = 14
PV = $4400 / (1 + 0.083)(20 - 6)
PV = $4400 / (1.083 * 14)
PV = $4400 / 15.162
PV = $290.1992
Present Value = $290.20 (Approximated)
