Answer:
$812.20
Explanation:
Given the following bond characteristic:
Coupon rate = 12%
Market or yield rate = 15%
Years to maturity = 20 years
Face or par value = $1000
Inputting the values into a bond value calculator, the bond value output is : $812.20
This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.
It would be false, because they don’t go into the same category
Answer:
- 0.80
Explanation:
Price elasticity of demand describes the extent to which the quantity demanded of good X changes as result of a change in its own price.
The midpoint formula for price elasticity of demand is presented and used as follows:
Percentage change in quantity = %ΔQ = [Q2 - Q1] / [(Q2 + Q1) ÷ 2] × 100
Percentage change in quantity = %ΔP = [P2 - P1] / [(P2 + P1) ÷ 2] × 100
Midpoint price elasticity of demand = %ΔQ / %ΔP
Where:
Q2 = New quantity of good X = 150
Q1 = Initial quantity of good X = 100
P2 = New price of good X = $6
P1 = Initial price of good X = $10
Therefore,
Percentage change in quantity = %ΔQ = [150 - 100] / [(150 + 100) ÷ 2] × 100
= [50/(250 ÷ 2)] × 100
= (50/125) × 100
= 40.00%
Percentage change in quantity = %ΔP = [$6 - $10] / [($6 + $10) ÷ 2] × 100
= [-$4/($16 ÷ $2)] × 100
= (-$4/$8) × 100
= - 50.00%
Price elasticity of demand = 40% / 50% = - 0.80
The elasticity of demand of -0.80 less than 1. That indicate that the quantity demand is inelastic. That is the change in the degree of change in the quantity demanded of good X is lower than the degree of change in its price.
Answer:
The correct answer is letter "D": does not require estimates of bad debt losses.
Explanation:
There are mainly two approaches while recognizing bad debts (unpaid debts): <em>the allowance method </em>and <em>the direct write-off method</em>. Using the allowance method the unpaid account receivable goes through a series of stages until it is recognized as a bad debt. There are no set criteria to do so. When the firm eventually recognizes and calculates the amount of a bad expense, it is recorded in an allowance account. The negative balance diminishes the company's revenue.
The direct write-off method does not generate any allowance account. The account receivable is simply written-off after the company determines the debt as uncollectible. Thus, there is no need to estimate bad debt losses using this approach.
Answer:
The incremental after-tax cash flows associated with the project
