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charle [14.2K]
3 years ago
14

Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issue

d 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $950.70. The capital gains yield last year was -4.93%. What is the yield to maturity
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

The answer is 9.85%

Explanation:

The number of periods N = 9years(10 years minus 1 year ago)

Yield to Maturity (I/Y) = ?

Present value of the bond (PV) = $950.70

Future value of the bond(FV) = $1,000

Annual payment (PMT) = $90 (9% x $1,000)

Using a financial calculator to solve the problem ( BA II plus Texas instruments):

Yield to Maturity (I/Y) = 9.85%

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Dahasolnce [82]

broad differentiation, focused strategy, and broad cost leadership are the three Generic business strategies Porter identified for entering a new market.

<h3>What are Generic business strategies?</h3>

A Generic business-level strategy is a broad approach to a company's positioning within a sector. Executives can concentrate on the essential components of business-level plans by focusing on generic strategies. The most widely used set of generic strategies is derived from the work of Harvard Business School Professor Michael Porter.

The foundation of any business-level strategy, in Porter's opinion, is two competitive dimensions. The first factor is the source of competitive advantage for a company. This factor examines whether a company seeks to outperform competitors by cutting costs or by providing a niche product.

The range of a company's operations is the second factor. This aspect pertains to whether a company tries to target clients generally or whether it only aims to draw in a certain customer demographic.

These choices lead to the following four general business-level strategies:

  • Broad cost leadership,
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To know more about Generic business strategies refer to:  brainly.com/question/27403764

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2 years ago
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Taking notes is likely to increase your
vova2212 [387]

Answer:

A. Enunciation

Explanation:

3 0
3 years ago
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Oriole Company has the following inventory data:
Yuliya22 [10]

Answer:

$3,942

Explanation:

Step 1 : Determine number of units sold

Units Sold = Total units available for sale - Units remaining in inventory

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                  = 168 units

Step 2 : Determine Cost of goods sold

<em>FIFO assumes that the units to arrive first will be sold first.</em>

Cost of goods sold = (45 units x $22) + (123 units x $24)

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The amount allocated to cost of goods sold for July is: $3,942

7 0
2 years ago
Spacefood Products will pay a dividend of $ 2.25 $2.25 per share this year. It is expected that this dividend will grow by 3 3​%
gavmur [86]

Answer:

$32.14 per share

Explanation:

The computation of the current value of the single share is shown below:

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where,

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And, the growth rate is 3%

So by placing these items, the current value is

= $2.25 ÷ (10% - 3%)

= $32.14 per share

7 0
2 years ago
When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the:
Vlad1618 [11]

Answer:

The remaining part of the question is:

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<u>Correct Answer:</u>

b.<u>Current yield. </u>

<u></u>

Explanation:

7 0
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