If the question is trying to ask whether it is true or false, the answer is false. It is because whatever you chose or the decisions you make, there is always a cause, or things affecting your decision in which you will be held accountable for such as the statement above implies, you are accountable of resources and such when you choose.
The answer is a I believe I'm not really sure
Calculate the value of
the stock:
<span>The dividend on
preferred stock is received constantly for perpetuity. So, the value of
preferred stock can be calculated by dividing the dividend with the required
rate of return. If the dividend rate is 8% on par value of $ 100 and required
rate is 6% the value of preferred stock will be P = (100x0.08)/0.06 = 8/0/06 =
133.3333333</span>
Answer:
at 13% --> $1,000
at 17% -->$806.54
at 10% --> $1,194.85
When the rates do not match people will only accept the bond if their desired market return can be acheive. Because, the coupon payment are fixed the only way to do so is by changing the price ofthe bond.
So bond with coupon rate above market are trade at a price higher than face value while, below market traded at lower price.
Explanation:
The market value of a bond is the present value of the future coupon payment and maturity given the current market rate
When the market rate matches the coupon rate then the bond is at par and sales at face value.
C 130.000
time 11
rate 0.17
PV $628.7337
Maturity 1,000.00
time 11.00
rate 0.17
PV 177.81
PV c $628.7337
PV m $177.8097
Total $806.5435
C 130.000
time 11
rate 0.1
PV $844.3579
Maturity 1,000.00
time 11.00
rate 0.1
PV 350.49
PV c $844.3579
PV m $350.4939
Total $1,194.8518
The bank can repossess the car and if anything is used as collateral they can claim that as well. It is best to not get yourself in debt you cannot pay off.
One way to calculate debt is to figure out what your income is per week, and divide that by the weekly payments for the car. Lets say you make 3200, and your debt is 450 a week.
As shown below
<em>Income ÷ Payments </em>
3200 ÷ 450 = 0.14
Now multiply that by 100 to get your percentage,
0.14 x 100 = %14
Financial advisors recommend that you keep your debt-to-income ratio under 30%.