Answer:
correct option is d. No, because EVPI is $25, which is less than the consultant's fee of $30
Explanation:
given data
accuracy = 100 %
perfect information = $200
EMV = $175
to find out
Expected Value of perfect Information
solution
we know that Expected Value of perfect Information (EVPI) is the maximum that needs to be paid to obtain perfect information
so
Expected value of perfect information = perfect information - EMV ..........1
put here value we get
Expected value of perfect information = $200 - $175
Expected value of perfect information = $25
so correct option is d. No, because EVPI is $25, which is less than the consultant's fee of $30
Answer:
retention ratio
Explanation:
Retention ration is the portion of net income retained by a firm to grow its business rather than being declared and paid as dividened.
When a company makes profit at the end of financial period, the company can either retain part of its earning for business expansion, declare part as dividends paid to shareholder or combine both.
Where a firm now reinvest the portion of the profit earned in itself, it is called retention ratio.
Answer:
a. 9.59% b. 44,114.35
Explanation:
a. The rate of return can be calculated using Financial Calculator by pressing 10 for N(number of years), -4000 for PV (PV=present value), 0 for PMT (because you didn't get any payments during those 10 years) and 10,000 for FV (FV= future value). You hit CPT button and then press I/Y button to find the rate of return. Without a calculator the formula is:
the whole fraction is taken to the power of 1/10
b. You calculate using the formula below:
10000 × (1+ .16)^10
the ^ in the equation above means to the power of 10
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
Yes you have to credit a fact if it doesn't involve numbers