Answer:
Total PV= $46,728.79
Explanation:
Giving the following information:
Cash flow:
Cf1= $8,000
Cf4= $16,000
Cf8= $20,000
Cf10= $25,000
Discount rate= 6%
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
Cf1= 8,000/(1.06^1)= 7,547.17
Cf4= 16,000/(1.06^4)= 12,673.50
Cf8= 20,000/(1.06^8)= 12,548.25
Cf10= 25,000/(1.06^10)= 13,959.87
Total PV= $46,728.79
Answer:
The dates for the interest and maturity payments are fixed.
Explanation:
When a company issues bonds instead of stock, one of the disadvantages of doing so is that they have to pay the coupons or the full face value of the bonds at specific dates. Either they pay coupons annually or semiannually, and the face value is paid at maturity.
Since the dates are set beforehand, the company has to have the funds for these payments set aside. Instead, if the company would have issued stock, it would have greater freedom in deciding when and how much it should pay as dividends.
For this case we have the following function:
f (x) = 2x ^ 2-24x + c
We set zero to find the roots of the function.
We have then:
2x ^ 2-24x + c = 0
x ^ 2-12x + c / 2 = 0
Factoring we have:
(x - / + x1) (x - / + x2) = 0
On the other hand we have:
x2-x1 = 18
x2 + x1 = -12
Solving the system we have:
x1 = -15
x2 = 3
Substituting we have:
(x-15) (x + 3) = 0
Rewriting:
x ^ 2 -12x - 45 = 0
Therefore, the value of c is given by:
c / 2 = -45
c = -90
Answer:
the value of c is:
c = -90
B.
You must simply follow your equilibrium point. If the new demand curve is at D2, then you find the new intersection formed by D2 and S1.
Answer:
Demand for chocolate bars increases.
Explanation:
There are two goods: jelly beans and chocolate bars. They are substitute goods. We know that there is a positive relationship between the price of one good and the demand for other good. The substitute goods are generally have a positive cross price elasticity of demand.
This means that as the price of jelly beans increases then as a result the demand for chocolate bars increases even if the price chocolate remains the same.
