Answer:
Find answers below.
Explanation:
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.
Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment. Longer maturity bonds have high price risk but low reinvestment risk, while higher coupon bonds have a higher level of reinvestment risk and a lower level of price risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called duration, which is the weighted average of the time it takes to receive each of the bond's cash flows.
The bonds which would have the largest duration is a 10 year - zero coupon bond.
Answer: Coca-cola
Explanation:
Coca-cola as a soft drink has dominated the world since the 20th century but faces competition against drinks from other companies such as Pepsi and RC Cola.
In other to keep up their competitive edge and sell to more customers, the embark on extensive marketing campaigns that are catchy and memorable.
Coca-cola has also been differentiated over the years by introducing various flavors that are meant to appeal to different segments in the market such as Diet Coke, Coca-Cola Zero Sugar, Coca-Cola Cherry and Coca-Cola Vanilla.
Answer:
Precious metals should accept the project
Explanation:
To determine which company should accept the project, one has to calculate the net present value.
The net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator:
Cash flow in year 0 =
Cash flow each year from year one to ten =
For Deep Mining ,
I = 16.7%
NPV = $39,096.09
Precious Metals,
I = 12.6%
NPV = $83,144.67
Precious metals should accept the project because its npv is postive.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
a.retained earnings.
Explanation:
All of the below mentioned accounts are acquired at historical cost and cash benefits do not change for them, as because they are acquired on cost, that is there carrying value is cost and related to amount for which it was acquired, further retained earnings includes the balance of current earnings added, therefore as per rules retained earnings are not converted, on historical conversion rate, and will be converted using current conversion rates of currency.
Final Answer
a.retained earnings.
Answer:
$3,857
Explanation:
From the above, we do know that;
Revenue - Expenses = Net income
But
Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses
Also,
Net income tax = Income before taxes × ( 1 - tax rate)
Since we do not know Net income taxes,
Net income - Dividends = Change in retain earnings
Net income = $2,810 + $700
= $3,510
Income before taxes = $3,510 / 0.79
= $4,443
$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443
Therefore,
Depreciation expenses = $3,857
