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tankabanditka [31]
3 years ago
11

You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the

coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price
Business
1 answer:
andriy [413]3 years ago
6 0

Answer:

since the market price is lower than the offered price, you should reject this offer

Explanation:

bond's market value

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32

market price = $934.96

since the market price is lower than the offered price, you should reject this offer

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A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income f
lbvjy [14]

Answer:

Net income for the current period is $2,350.

Explanation:

Calculation of Net Income for the Current Period.

                                                                    $               $

Fees earned                                                             7,250

Less Expenses :

Rent expense                                           1,300

Salaries expense                                     2,300

Utilities expense                                         345

Insurance expense                                    650

Supplies expense                                        115

Depreciation expense—equipment          190   (4,900)

Net Income / (Loss)                                              2,350

3 0
3 years ago
Ashley is considering the purchase of a stock that has just paid a dividend of $0.72, today. The dividend is expected to grow at
arlik [135]

Answer:

$10.28

Explanation:

<u>Step 1. Firstly we use the of the The dividend discount model (DDM)</u>

This calculation is: D1 = D0 x (1 + g)

D1 = $0.72 x (1 + 2.8%) = $0.74.

Where

Do = Dividend now

D1 = Dividend in year 1

g = growth

<u>Step 2 Next, using the Gordon Growth Model, </u>

Price per share is found to be D(1) / (r - g)

Price = $0.74 / ( 10% - 2.8%) = $10.28

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

7 0
3 years ago
Epa rules require capture of 80% of the refrigerant from a small appliance sealed system with a non-operating compressor if tech
ki77a [65]
Epa rules require capture of 80% of the refrigerant from a small appliance sealed system with a non-operating compressor if technicians are using: <span>Self-contained (active) process. </span>This requirement makes it easier for the technicians to install a safe and environmentally friendly product for the customer and speed up the time of the procedure.
3 0
3 years ago
Two fatal flaws can render a business model untenable from the beginning. These are:
zavuch27 [327]

Answer:

The correct answer is the option A: failure to complete a business plan and failure to get funding.

Explanation:

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6 0
3 years ago
David and his best friend are in a car accident with another vehicle and it is david's fault. david and his friend are both inju
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It depends on what cover he have even full cover or lie ability insurance
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