B. Decreases
if demand goes down, nobody is buying anything, so the need to produce/manufacture is down
Answer:
The answer is 5.73%
Explanation:
Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2
NPER= Years of maturity *2= 12*2=24
PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75
Therefore:
Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%
Yield to maturity= Rate *2= 2.87*2= 5.73%
Answer:
Management can implement a tax strategy to create future taxable income, but it will be detrimental to the future profitability of the company.- D.
Answer:
= 18.7%
Explanation:
<em>A portfolio is a collection of assets/ investment. The return on a portfolio is the weighted average of all the return of the individual assets weighted according to the percentage of total funds allocated to each assets.</em>
Expected return on portfolio:
E(R) =( Wa*Ra) + (Wb*Rb)
Wa = 56% , Wb = 100-56 = 44%
Ra = 12%, Rb = 24%
E(R) = (0.56*24%) + (0.44× 12%)
= 18.7%