Answer: Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials)
Explanation:
The International Footwear Federation is a consumer group that issues s/q ratings for footware makers around the world.
The S/Q ratings range from 0 - 10 stars and measure everything between the quality and appearance of the footware apparel.
Footware with high quality materials that are durable rank high in the S/Q matrix and as such it is imperative that companies aiming to move higher up the S/Q scale, use high quality materials.
Avoiding the use of green/environmentally-friendly materials (which are of lower quality than superior materials) and instead using Superior materials, whilst not entirely good for the Environment, will make a shoe stronger which would increase the S/Q rating.
Answer:
b contractionary monetary policy will be effective.
Explanation:
Inflation occurs when excess money is used to buy goods, that is price of basket of goods rises. It results from a decline in the value of money.
Central banks are tasked with control of a country's economy and rising inflation needs to be reduced.
To do so the Central Bank uses contractionary monetary policies aimed at reducing money in circulation.
The rationale is that the more scarce money is the more the demand for it, and in turn the more value it will have.
Contractionary monetary policies includes increase in interest rate to make lending more expensive, and selling of government bonds to the public in order to mop up excess cash
Answer:
When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%
Explanation:
Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).
Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.
So, everything should look like this.
Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%
Best of luck.
Answer:
(a) It will have multiple IRRs
(b) The MIRR calculated is 10.18% . Going by MIRR result , this project will only generate returns that is equal to cost of capital(10%) .If there are other avaible more viable projects, it should be rejected ( Please see attached computation).
Explanation:
(a) The multiple IRRs occurs when cash flows change sign and result in more than one value for the IRR.
Application of IRR to value an investment is only suitable when the project has normal cash flows, i.e a negative initial cash flow (i.e initial investment) followed by a series of positive cash flows.
In this scenario, we have negative cash flow of $6m in year 4 which occured after positive cash flow of $3.5m per year from year 1 to 3. This typically make IRR unreliable. To overcome this limitation , we can use Modified Internal Rate of Return (MIRR)
(b) Please see attached for more details.