Answer:
The coupon value is 1000 × 7% = $70
Face Value is $1000
Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54
Maturity period: 12 years
YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent
Explanation:
The coupon value is 1000 × 7% = $70
Face Value is $1000
Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54
Maturity period: 12 years
YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent
Answer: Option A
Explanation: In simple words, globalization refers to the process under which the business organisations become able to operate their activities in more than one nation. Globalization has opened worldwide market gates for business organisations.
To operate business in a foreign country, entities must have to use some local resources like employees of the target country for gaining efficiency. This results in a problem of miscommunication or no communication in which the managers might not be able to exchange information will all the different departments leading to loss of potential synergies.
Thus, from the above we can conclude that the correct option is A.
As per the CAPM, the investors of elsenore should expect a return of = rf + beta*(rm-rf)
The investors of elsenore should expect a return of = 8+1.6*(15-8) =19.2%
Answer:
c. No, you would not raise the price
Explanation:
A perfectly competitive market form is the one which is characterized by following features:
- Large number of buyers and sellers: The number of buyers and sellers is so large that output by an individual seller forms insignificant portion of the industry output, and thus an individual firm cannot exert perceptible influence on the prices or output.
- Homogeneous Products: Firms in such a market produce same and exactly similar products in terms of color, size, weight, etc.
- Freedom of entry and exit: There exist no entry barriers while loss making firms can leave the industry as well.
- Price taker: Price in such a market form is determined by interaction of market forces of demand and supply and each firm accepts such price. Thus firms are price takers.
In the given case, since all seller firms are producing exactly same products, if one raises the price, the buyers will switch to products of other sellers, providing same product at a lower price. Thus, all sales would be lost in such a scenario.
So, one cannot raise price even by a cent in a perfectly competitive market form.
