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Phantasy [73]
2 years ago
5

A few years ago the British government was considering​ retiring, or buying back from​ investors, some outstanding consols that

had annual coupons of . A consol​ is:______
a. a coupon bond that pays a variable coupon rate and does not mature.
b. a coupon bond that pays a fixed coupon rate and has a fixed maturity date.
c. a coupon bond that pays a variable coupon and has a fixed maturity date.
d. a coupon bond that pays a fixed coupon rate and does not mature.

If the yield to maturity on other​ long-term British government bonds was 2.0​%, the price the British government is likely to offer investors is ​£ _________
Business
1 answer:
Artyom0805 [142]2 years ago
8 0

Answer: d. coupon bond that pays a fixed coupon rate and does not mature.

$3250

Explanation:

A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable

Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:

= 65/2%

= $3250

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Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out​ 60% of i
sukhopar [10]

Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

7 0
3 years ago
In preparing the April bank reconciliation for Oscar Company, it was discovered that on April 10 a check was written to pay deli
aev [14]

Explanation:

The correction of error is shown below:-

Expense of decrease delivery and cash by $9.

Therefore, to correct this error, which affect the cash is undercharged and delivery expenses to be overcharged. So, the company will decrease the delivery expenses and increase cash by $9, it came by deducting the 45 from $54 and recorded amount is 54.

8 0
3 years ago
Who are decision makers within organizations? (Check all that apply.)
dedylja [7]

Answer: Consultants

Explanation: They give their ideas and the company works according to that. If the company managers take decisions that suits them the employees and owners will adhere but the consultants might turn it down which affects the company immensely.

6 0
3 years ago
Crane Corporation's computation of cost of goods sold is:
slava [35]

Answer:

16.64 days

Explanation:

Given the above information, we will calculate the average days to sell inventories with the formula below;

Average days to sell inventories = [Ending inventory / Cost of goods sold] × 100

Ending inventory = $72,000

Cost of goods sold = $432,800

Then, Average days to sell inventories

= [$72,000 / $432,800] × 100

= 16.64 days

Therefore, the average days to sell inventory for Fry are 16.64 days

5 0
3 years ago
For a competitive market, A. a seller can always increase her profit by raising the price of her product. B. a seller often char
PtichkaEL [24]

Answer: For a competitive market, <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>

Explanation:

A perfectly competitive market has the following characteristics:

(a). In this particular market there are many buyers and sellers.

(b). Also each company makes similar product. i.e. the products are identical in nature.  

(c). In this market buyers and sellers will have access to perfect information about price. and product.

(d). In a competitive market there are no barriers to entry into or exit from the market.

Therefore , <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>

3 0
3 years ago
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