Answer:
$22,251
Explanation:
Coupon rate = $2,000
Now, we calculate the seired sale price of the bonds:
19,000 = 2,000[P/A, 14%, 4] + S[P/F. 14%, 4]
19,000 = 2,000(2.9137) + S(0.592)
S = (19,000 - 5,827.4) / 0.592
S = 22251.01351351351
S = $22,251
So, he have to receive $22,251.
The answer is <u>"He could securely pick either a commercial bank or a credit union, as long as his savings account balance meets the protection necessities".</u>
While banks and credit unions are both money related foundations that offer comparable administrations (checking and investment accounts, automobile advances, and home loans), the fundamental contrast between a bank and a credit association is that "clients" of a credit association are individuals, and they claim the establishment. A bank is an organization, and like most organizations, a bank intends to amplify benefits for its investors. A credit union is an agreeable — and frequently not-for-benefit — establishment that is possessed by its individuals (clients) who justly choose a governing body. Credit associations will in general spotlight on individuals' needs and endeavor to give credit at sensible rates.
Answer:
9.82
Explanation:
Given that,
Assets = $18 billion
Tax rate = 35%
Basic earning power (BEP) ratio = 12%
Return on assets (ROA) = 7%
BEP = EBIT ÷ Total Assets
12% = EBIT ÷ $18 billion
EBIT = 12% × $18 billion
= $2.16 billion
ROA = Net Income ÷ Total Assets
7% = Net Income ÷ $18 billion
Net Income = 7% × $18 billion
= $1.26 billion
Earning before tax:
= Net income ÷ (1 - tax)
= $1.26 ÷ (1 - 0.35)
= $1.26 ÷ 0.65
= $1.94 billion
Interest Expense:
= EBIT - EBT
= $2.16 billion - $1.94 billion
= $0.22 billion
Times interest earned ratio:
= EBIT ÷ Interest expense
= $2.16 billion ÷ $0.22 billion
= 9.82
Answer:
A base salary of $500,000 plus a stock option package for 250,000 shares that mature in six months.
Explanation:
The same component in each option is base salary of $500,000.
Since the salary is common the decision will not impact for such common component.
As with the time value of money concept the later the payment, current value of such payment is less, relatively therefore, the option of maturing shares of $250,000 in 6 months is better than the payment of shares matured in equal 5 years.
Further, the perquisites may or may not be monetary and as with respect to such decision choosing monetary perks like shares are better as it provides an individual the choice to spend such money according to his will.
