Answer:
1. $1,016.25
2. $1,035.30
Explanation:
Dollar coupon interest = Par value * (1+inflation/2)*coupon rate/2
1. Dollar coupon interest = 50000* (1+3.25%/2)*4%/2
Dollar coupon interest = 50,000*(1+3.25%/2)*4%/2
Dollar coupon interest = 50,000*1.01625*0.02
Dollar coupon interest = $1,016.25
2. Dollar coupon interest = 50,000*(1+3.25%/2)*(1+3.75%/2)*4%/2
Dollar coupon interest = 50,000*1.01625*1.01875*0.02
Dollar coupon interest = 1035.3046875
Dollar coupon interest = $1,035.30
Answer:
$1,729,098
Explanation:
Given that,
EBIT = $377,000
No debt.
Cost of equity = 13.3 percent
Tax rate = 39 percent
Value of issuing bonds at par = $2.7 million
Coupon rate = 6.5%
Therefore,
Unlevered value of the firm:
= [EBIT × (1 - Tax rate)] ÷ Cost of equity
= [$377,000 × (1 - 0.39)] ÷ 0.133
= $229,970 ÷ 0.133
= $1,729,098
Answer:
my day is good and i hope you have a good day as well
Explanation:
If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.
<h3>Present value of the land</h3>
Using this formula
Present value=Income/Rate per annum
Let plug in the formula
Present value=$10,000/0.05
Present value=$200,000
Therefore If a piece of land produces an income that grows by 5% per annum. The value of the land is $200,000.
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Answer:
Answer is below
Explanation:
Factors that may cause the demand curve to shift outward are:
1. changes in tastes and preference: when there is a change in taste for example commodity A, whereby people tend to enjoy its taste, the will be an outward shift in the demand curve of commodity A
2. income of the consumers: when the income of consumers increases, they tend to buy more of a certain commodity they enjoy, hence there will be an outward shift in that commodity's demand curve
3. prices of substitute or complement goods: for example, an increase in the price of a substitute will cause consumers to demand more for a particular commodity, hence, outward in demand shift curve occurs
4. expectations about future conditions and prices: when there is speculation about an increase in the price of an essential commodity or goods consumers enjoy, people tend to buy more in a given moment, hence there exists an outward shift in the demand curve
5. Population of consumers in the market: increase in the population of consumers of a certain commodity is directly proportional to an increase in demand of that commodity, hence there exists an outwards shift in the demand curve.
