Answer:
Quantity discounts are available
Explanation:
The Economic Order Quantity model is a model that helps define an order quantity of inventory with minimum costs. It is a model that serves as a base for order calculations because it bases itself on calculating without any variables where everything is constant. With that in mind, everything will be the same. The demand will be the same. Delivery Time will be the same. And, to answer the question, the unit price will also be the same no matter the volume ordered aka there is no discount available.
Answer:
no capital gain or loss
Explanation:
A customer buys $10,000 of 30 year corporate bonds with 10 years left to maturity at 92. The customer elects not to accrete the discount annually. At maturity, the customer will have no capital gain or loss.
Answer:
a. Zero
b. $200 million
c. $2 million
Explanation:
a. The investor invest regular in portfolio with the positive alpha until the portfolio size has driven alpha to zero.
b. Davita return 2% of $100 million = $2 million
1% fee \times X million total under management.
Than, X = $200 million
c. $200 million \times 1% fee given = $2 million
Answer:
a. What is the pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
b. What is the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Explanation:
we must first determine the bond's yield to maturity:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2] = {30 + [(1,000 - 930)/60]} / [(1,000 + 930)/2] = 31.17 / 965 = 3.23% x 2 = 6.46%
after tax cost of debt = 6.46% x (1 - tax rate) = 6.46% x (1 - 22%) = 6.46% x 78% = 5.04%
Answer:
20.19%
Explanation:
The computation of the sustainable growth rate is shown below:
The Sustainable growth rate is
= (return on equity × b) ÷ (1 - (Return on equity × b))
= (0.21 × (1 - 0.20) ÷ (1 - (0.21 × (1 - 0.20)))
= 0.168 ÷ (1 - 0.168)
= 0.168 ÷ 0.832
= 20.19%
basically we applied the above formula to determine the sustainable growth rate
