Answer: 6.5%
The yield to maturity is 6.496% (approximated to 6.5% to nearest tenth)
Explanation:
Using the formula (semi annually YTM)
YTM = C + (fv - pv) /t ÷ (fv + pv)/2
C= coupon rate = 7%(1000)= $70
fv = face value = $1,000
pv = price value = $1,032
t = Time to maturity in years = 8years
C + (fv - pv) /t = 70 + (1000–1032)/8
= 70 – (32 /8) =66
(fv + pv) /2 = (1000 + 1032) /2
= 2032 / 2
= 1016
YTM = 66 / 1016
YTM = 0.06496
In % = (6496 / 100,000) × 100
= 6.496%
Approximately.... 6.5%
Answer:
Which of the following observations is true?
d. In the long run, more costs become variable.
Explanation:
The long run is a period of time in which all factors of production and costs are variable.
Answer:
r = 0.099974 or 9.9974% rounded off to 10.00%
Explanation:
Using the constant growth model of DDM we calculate the price of a stock today which is expected to pay a dividend which increases at a constant rate through out. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,
P0 = D1 / r - g
Where,
- r is the required rate of return or cost of equity
- g is the constant growth rate in dividends
Plugging in the available values in the formula, we calculate r to be,
74.11 = 4.63 / (r - 0.0375)
74.11 * (r - 0.0375) = 4.63
74.11r - 2.779125 = 4.63
74.11r = 4.63 + 2.779125
r = 7.409125 / 74.11
r = 0.099974 or 9.9974% rounded off to 10.00%
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Currently, the unit selling price of a product is $125, the unit variable cost is $105, and the total fixed costs are $460,000. A proposal is being evaluated to increase the unit selling price to $130.
Break-even point= fixed costs/ contribution margin
A) Break-even point= 460,000/(125-105)= 23,000 units
B) Break-even point= 460,000/ (130 - 105)= 18,400 units
Answer:
there are mainly two types of industries that we can identify based on their nature. One is new and growing industries and other is established and mature industries.
when we analyze a particular company in a certain industry or analyzing a particular industry in an economy, we have to understand if it is a new and and growth industry of a matured industry as the growth, volatility and risks in these industry type change rapidly depending on which industry we are looking at.
Growth industries can be simply described as new and industries that did not exist previously.
Explanation:
