Answer:
Yield to maturity = 10.2020%
Explanation:
Given:
Face value of bond (f) = $1,000
Purchase price (p)= $980
Coupon rate = 10%
Number of year (n) = 20 year
Interest payment (c) = $1,000 × 10% = $100
Yield to maturity = ?
Computation of yield to maturity :


Yield to maturity = 0.102020
Yield to maturity = 10.2020%
The Cartesian coordinate system is also referred to as a <span><span>rectangular <span>coordinate system</span></span> coordinate system.
It i a system used in geometry which uses coordinates in order to determine the position of a geometric element (point for example). According to this system each point is specified by a pair of numerical coordinates. </span>
Answer:
Ford's weighted average cost of capital is 8.22 %
Explanation:
Weighted Average Cost of Capital (WACC) is the minimum return that the company expect from a project. It shows the risk of the company.
Calculation of WACC
WACC = Cost of equity + Cost of preferred stock + Cost of debt
Capital Source Market Values Weight Cost Total Cost
equity $ 7 billion 29.17% 13.6% 3.97 %
preferred stock $ 2 billion 8.33% 12% 1.00 %
debt $ 15 billion 62.50% 5.2 % 3.25%
Total $ 24 billion 8.22 %
Cost of equity = Risk free rate + Beta × Risk Premium
= 4% + 1.2 × 8%
= 13.6%
Cost of preferred stock = Dividend/Market Price
= $ 3/ $ 25 × 100
= 12%
Cost of debt = interest × (1- tax rate)
= 8% × (1-0.35)
= 5.2 %
Answer:
Jason's company is most likely a:
bureaucratic organization
Explanation:
A bureaucratic organization is a form of management that has a pyramidal command structure. The bureaucratic organization is very organized with a high degree of formality in the way it operates. Organizational charts generally exist for every department, and decisions are made through an organized process.