Answer:
The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46 to $ 972.70
Explanation:
In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.
In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)
The present value is computed in the attached.
The effect of repurchasing stock using the cost method is to Increase Treasury Stock, Decrease stockholders' equity ,Decrease Assets.
<h3><u>
What is Cost Method?</u></h3>
- Certain investments are recorded using the cost method of accounting in a company's financial statements.
- When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy. On the balance sheet, the investment is listed as an asset at its historical cost.
- The investor lists the investment's cost as an asset. Dividend income is recorded as income when it is received and appears on the income statement.
- Depending on the investor's accounting principles, the receipt of a dividend also boosts the cash flow, either in the investing portion or the operational area of the cash flow statement.
Treasury stock, commonly referred to as treasury shares or reacquired stock, describes previously outstanding stock that the issuing corporation purchases back from stockholders. The effect of repurchasing stock using the cost method increases treasury stock.
Know more about Cost Method with the help of the given link:
brainly.com/question/14917620
#SPJ4
Carnival used the strategic environmental scanning to plan its new ad design campaign
Explanation:
Advertisements play an important role in the lives of the people they most often display the company's potential and its ability to build the company and the interaction with the customers
Strategic environmental scanning will involve the process of analyzing the threats to the company by taking a survey and this will improve the ways in which the company can be developed the trends the competition the technology the supply of labors are all considered and the plans are made accordingly
Answer:
C. mutual fund.
Explanation:
Mutual fund refers to a company that pools money from many investors into securities such as stocks and bonds. Mutual funds provide the service of a deversified portfolio for customers who would otherwise been unable to diversify their portfolio themselves.
Answer: Production efficiency
Explanation: In simple words, Production efficiency is process of producing a good or service at minimum cost. It is a situation when more unit of output of a commodity could not be produced without sacrificing any additional unit of some other resource.
The outsourcing for technical support from america, will lead to lowering of cost in operation of US companies. Thus, they can produce more without giving up additional units of capital.
Hence from the above we can conclude that this is an example of production efficiency.