Answer:
The correct answer is letter "B": nonphysical constraints.
Explanation:
According to the Theory of Constraints (TOC) a constraint is a limiting factor that does not enable companies to perform their work at their maximum capacity for their goals' achievement. In the same sense, nonphysical constraints are not material factors negatively influencing employees' actions. Wages cuts, reduction of benefits, unclear lines of command are examples of that kind of constraint.
Answer:
The correct answer is letter "D": are damages in excess of the plaintiff's injuries, awarded to punish the defendant.
Explanation:
Punitive Damages are penalties passed to the defendant of court cases on top of compensations they must pay to plaintiffs because of the faults they committed. The punitive damage is not provided to the plaintiffs but is imposed to punish defendants when their faults are negligent and should not be repeated.
Thus, <em>punish damages are imposed in an attempt to avoid other individuals to commit the same gross faults.</em>
Answer:
$106,595
Explanation:
Given:
Initial market rate = 9%
Dropped market interest rate, r = 7% per year
or
= 7% × [6 ÷ 12]
= 3.5% = 0.035
Remaining time, n = 9 years = 18 semi annual periods
Now,
Value of the bond at the retirement
= [ PVAF × Interest payment] + [ PVF × face value]
here,
Present value of annuity factor, PVAF = 
or
PVAF = 
or
PVAF = 13.189
And,
Interest payment = $100,000 × 8% × [6 ÷ 12 ] [since, 8% bonds]
= $4000
Present value factor = 
= 0.538
par value = $100,000
= [13.189 × $40] + [0.538 × 100,000]
= 52,758.7316 + 53,836.114
= $106,595
Hence,
The correct answer is option $106,595
Answer:
d. 16% - buy
Explanation:
R = (D1 / P0) + g
Where, R=Expected Return, P0 = Current Market Price = $40, D1=Expected Dividend=$, g = Expected Growth Rate = 11% = 0.11
Expected Return = R = ($2/$40) + 11%
R = 0.05 + 0.11
R = 0.16
R = 16%
Expected Return is higher than the required return of 12%. Hence, it should be bought (it is expected to give higher return than required)
Answer:
Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.
Explanation:
- Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
- Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
- Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment.
- Longer maturity bonds have high price risk but low reinvestment risk, while higher coupon bonds have a higher level of reinvestment risk and a lower level of price risk.
