Answer:
C.principal-agent problems.
Explanation:
The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.
Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.
Answer:
Current yield = 0.04850444624 or 4.850444624% rounded off to 4.85%
Explanation:
The current yield is the yield of a bond provided by its interest or coupon payments as a percentage of its current price. The formula to calculate current yield is as follows,
Current Yield = Interest payment per year / Current price of the bond
As the bond is a semi annual bond, assuming that the par value is 100, the semi annual and annual interest or coupon payment will be,
Semi annual coupon = 100 * 0.048 * 6/12 = $2.4
Annual coupon payment = 2.4 * 2 = 4.8
Current Yield = 4.8 / 98.96
Current yield = 0.04850444624 or 4.850444624% rounded off to 4.85%
The answer to your question is true.
Answer and Explanation:
Year 1 Dividend = 1.04
Year 2 Dividend = 1.08
Year 3 Dividend = 1.12
Year 3 Sale of Stock = 14.62
Year 1 Total Cash Flow = 1.04
Year 2 Total Cash Flow = 1.08
Year 3 Total Cash Flow = 15.74
I believe the answer is: c. interest rate
In mortgage we let an orgniazation (such as bank) to took ownership of a certain property that we want. We then pay the organisation with a certain amount of payment plus interest, and the ownership would be transferred to us after we complete all of the payment.
In this process, interest rate is the profit that the organization would take for their service. As the interest rate become lower, the amount of mortgage price would typically increased, and vice versa.