Answer:
The formula for calculating bond purchased at a premium written down for the period is
(coupon rate - interest due)n*m
m= times annually compounded= semi annually = 2
i.e., coupon rate = face value* r = 100*r
m 2
interest due = redeemable amount * yield rate = 105*4%
m 2
n = no of years * semi annually = 12 * 2 = 24
(coupon rate - interest due)n*m = (100*r/2 - 105*4%/2)12*2
r = 6.13%
Calculating for book value with 16 periods remaining we get the answer 118.1
Answer:
A capital gains return only
Explanation:
The below options are missing from the question:
A)A real return only.B)A dividend yield only.C)A capital gains return only.D)An income return and a capital gains return.E)An income return only
The return which is solely as a result increase in the price of the stock without any dividends is the capital gains yield which is computed thus:
capital gains return=price now-initial price/initial price
capital gains return=($18-$12)/$12=50.00%
Answer:
C) 200 percent profit; 100 percent loss.
Explanation:
There is a 50% chance that the company will make profit (20% profit) and 50% chance that it will lose money (20% loss).
Balin borrows $90 and invests $10 from his own money.
50% profit chance = $120 - $90 = $30 (200% profit)
50% loss chance = $80 - $90 = -$10 (100% loss)
Double-declining balance. Keep in mind there are three main ways to depreciate: straight-line, units of production, and double declining balance. Straight-line means depreciating the same amount every year. Units of production is based off your production levels for the year. Double declining means you depreciate more in earlier years (2 times your straight-line rate) and depreciate less in later years.
Answer:
(C) 17.65%
Explanation:
For computing the maximum sales growth rate, first we have to determine the full capacity sales which are shown below:
= Sales value ÷ capacity percentage
= $850 million ÷ 85%
= $1,000 million
Now the maximum sales growth rate would be
= (Full capacity sales - actual sales) ÷ (actual sales)
= ($1,000 million - $850 million) ÷ ($850 million)
= $150 million ÷ $850 million
= 17.65%