When a firm plans to issue bonds, it creates a(n) -prime-, which is a legal document that explains its obligations to bondholders?
Answer:
IRR = 8%
Don't accept the project
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = -9,187,846.67
Cash flow each year from year 1 to 11 = 1287000
IRR = 8%
Because the IRR is less than the hurdle rate, the project shouldn't be accepted.
To find the IRR using a financial calacutor:
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 IRR button and then press the compute button.
I hope my answer helps you
Answer:
Negative linear
Explanation:
Negative linear is when two variables move in the opposite direction. Movement by one variable causes the other to move in the opposite direction. Negative linear is similar to an indirect relationship between the variable. For Bungerjoy, the variables are price and sales of hamburgers.
An observation has been made that if the price of hamburgers decreases, the sales increase. Changes in the price of the hamburgers will result in sales moving in the opposite direction. Positive linear correction is when two variables move in the same direction.
Answer:
C. The Federal Reserve will need to have official reserves of euros to purchase dollars in the foreign exchange market.
Explanation:
Federal Reserve required to have a euros reserves as it can applied it also at the case when the exchange rate is move upward or downward
For the other things, the fed could restrict the supply with respect to the dollar in the foreign exchange market in order to get it stable that opposed with euro
Therefore the option c is correct
