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Semenov [28]
3 years ago
10

Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi

fth year (that is, you should receive a total of five coupon payments). At the time you receive your fifth payment, you will also receive the bond's face value of $5,000. Suppose the interest rate for a riskless bond is 7%. The most you would be willing to pay for this bond is $ . Give your answer to two decimals.
Business
1 answer:
Archy [21]3 years ago
6 0

Answer:

$3,667.44

Explanation:

The amount you would be willing to pay today can be determined by finding the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $25

Cash flow in year 5 = $25 + $5000

I = 7%

Present value = $3,667.44

To find the PV using a financial calculator:

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  

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Large firms with significant slack resources (i.e., are able to launch a greater number of competitive actions) but that remain
Black_prince [1.1K]

Answer:

True.

Explanation:

It is true that large firms with significant slack resources but who remain flexible and act like small firms will be more successful against rivals.

Larger firm with significant high resources need to manage these resources with additional responsibility and there is a high risk of these resources to be remain unutilized or inappropriatly used, which may affect the company´s growth and does not remain flexible in taking risk, however, they can take greater number of competitive actions.

Small firm with lesser resources and less liability help them to be flexible and can take higher risk to be competitve in the market. They learn to optimum utilize the resources and plan new strategy that help them to be more successful against rivals. They are called "Dark horses" in the market.

7 0
3 years ago
Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to bui
belka [17]

Suppose an American buys stock issued by an Argentinian corporation. The Argentinian firm uses the proceeds from the sale to build a new office complex. This is an example of foreign <u>portfolio</u> investment in Argentina.

The following are the policies that are consistent with the goal of increasing productivity and growth in developing countries:

b. Providing tax breaks and patents for firms that pursue research and development in health and sciences.

c. Protecting property rights and enforce contracts.

<u>Explanation</u>:

A foreign portfolio investment is the investment made by a foreigner in the form of purchase in country’s stock and bond markets or deposit of money in bank.

Foreign portfolio investment is important because it gives high risk-adjustment return to the investors. The investors get the opportunity to engage in international diversification of portfolio assets.

The growth of the developing countries can be increased by enforcing contracts and providing patents for the firms that deal with research and development in health and sciences.

5 0
3 years ago
Use the ethical tools from the readings to discuss the ramifications of electronic medical records. Suppose that there was a nat
ladessa [460]

Answer and Explanation:

1) EHR System which helps in capturing the functionalities and and check for required informations

2) Online Tool for notifying the doctor about the status pf the patient

3) Interactive health records

4) Computerized physician entry of orders (CPOE)

Benefits of centralized system are as follows:

1) IT gives a lower hardware expense

2) Improves the productivity of the IT Staff

3) Enhances the purchasing power

4) Meets the industry regulations

5) Information flow is properly maintained.

The cost of the system would be with respect to the tools to be used and the broadness of the network.

5 0
3 years ago
The primary function of most media is to ________.
Tema [17]

Answer:

The correct answer is letter "D": provide information and entertainment to their audience.

Explanation:

Media refers to all the channels of communication by which information can be spread. <em>Television, radio, newspapers, magazines, </em>and<em> social media </em>are the most common examples of communications media. The information portrayed through those channels has several purposes depending on who transmits it. However, the main purpose of media is to show audiences entertainment information in the form of videos, music, movies sports or news.

3 0
3 years ago
Golden Enterprises started the year with the following: Assets $107,000; Liabilities $37,000; Common Stock $67,000; Retained Ear
Tema [17]

Answer:

$3,650

Explanation:

Given that,

Assets = $107,000;

Liabilities = $37,000;

Common Stock = $67,000;

Retained Earnings = $3,000

Amount of net income:

= Revenue - Expenses

= $5,700 - $3,350

= $2,350

Closing retained earnings:

= Retained earnings at the start + Current year net income - Dividends paid

= $3,000 + $2,350 - $1,700

= $3,650

Therefore, the Golden's retained earnings at the end of the year is $3,650.

6 0
3 years ago
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