PEST analysis involves the analysis of economic , political, legal, technological and cultural events and trends that may affect the future of the organization and its marketing efforts.
Explanation:
PEST analysis is the simple as well as mostly used tool that helps in analyzing economic,technological, political,socio-cultural changes in the business environment. There are various advantages of PEST analysis that is, it helps in proper understanding of the business, it helps in dealing with various threats, It is also a cost effective analysis. This analysis helps in determining the performance of the business during long- term.
Answer:
(a) 9.9%
(b) 10.09%
The further explanation is given below.
Explanation:
The given values are:
Coupon payment
= $99
Price
= $1,000
(a)
The Yield to maturity (YTM) will be:
=
where,
C = Coupon payment
P = Price
n = years to maturity
F = Face value
On putting the estimated values is the above formula, we get
⇒
⇒
⇒ %
(b)
Although the 1st year coupon was indeed reinvested outside an interest rate of r%, cumulative money raised will indeed be made at the end of 2nd year.
=
Came to the realization compound YTM is therefore a function of r, as is shown throughout the table below:
Rate (r) Total proceeds Realized YTM ()
7.9% 1205.8 9.8%
9.9% 1207.8 9.9%
11.9% 1209.8 9.99%
Now,
Overall proceeds realized YTM:
=
=
=
=
=
=
= %
Answer:
$10,721
Explanation:
Particulars Amount
Flexible budget ($57,440+($3,006*88)+($17*259)] $326,371
Actual results <u>$315,650</u>
Spending variance <u>$10,721 </u>
Thus, the spending variance for plane operating costs in November would be $10,721.