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padilas [110]
3 years ago
11

Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of

a $1,000 face value bond
Business
1 answer:
Helga [31]3 years ago
3 0

Answer:

Zero-cupon bond= $835.45

Explanation:

Giving the following information:

Face value= $1,000

YTM= 11.3%

Years to maturity= 16 years

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= 1,000 / (1.113^16)

Zero-cupon bond= $835.45

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Fits Like A Glove Shoes, Inc., and Retail Footwear Stores enter into a contract for a sale of shoes. The contract indicates that
andre [41]

Answer:

D) ​F.O.B.

Explanation:

Based on the scenario being described within the question it can be said that the included term would be F.O.B. This is a contractual term meaning Free on Board, and immediately specifies that the seller will deliver the goods at their own cost , through a specific route to the destination set forth by the buyer. Once the goods arrive the responsibility is no longer the sellers.

6 0
3 years ago
LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce
11111nata11111 [884]

Answer:

9.72%

Explanation:

Maturity = 34

Par-value = -1000

Coupon rate = 6%

Coupon PMT = -60

Value of bond = 1152

Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)

Semi-annual Yield = 5.00%

Annual Yield = 10%

Tax rate = 40%

After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%

Cost of preferred stock = Dividend/Price = 12/120 = 10%

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 3.72 + 0.94*6

Cost of equity = 9.36%

Particulars  Value per    No of        Market   Weight  Cost of     Product

                    security    securities     value                    security

Bonds             1162       100000     116200000   0.15784   11          1.736213

P. stock           120        1000000  120000000  0.16299   10         1.62999

Equity              100        5000000 <u>500000000</u> <u>0.6792</u>   9.36       <u>6.35697</u>

                                                       736200000     1                         <u>9.72317</u>

So, the WACC of the firm is 9.72%

3 0
3 years ago
One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that
gladu [14]

One of the biggest ethical risks in supply chain management is that the <u>most visible</u> supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.most visible.

<h3>What is ethical risk?</h3>

  • In reaction to their unethical behaviors, actors end up externalizing their locus of control, as if they had no other choice.
  • In this manner, actors reduce their own power to identify a profitable alternative course of action. They reduce their freedom to choose.
  • On the other hand, inclusive awareness of ethical and unethical aspects triggers a natural search for more ethical actions (Cf. Psychological attitudes towards ethical dissonance).
  • A rational analysis of the interest of such a more ethical alternative allows avoiding exaggeration of its costs (without proper analysis, a typical justification of an unethical action is that an alternative course of action would be too costly).
  • Further, awareness of potential ethical costs increases the relative attractiveness of an alternative more ethical action. The re-framing of the situation allows the identification of new opportunities otherwise hidden to the actors.

To learn more about ethical risk from the given link

brainly.com/question/8377024

#SPJ4

4 0
1 year ago
A strong brand can be an exceptionally powerful resource for competitive advantage by lowering ________, proxying _____ and insp
alexdok [17]

Answer: d). Search costs; quality; trust

Explanation:

A strong brand can be an exceptionally powerful resource for competitive advantage by lowering search cost, proxying quality and inspiring trust. Lower search cost and high quality will provide a competitive advantage to the firm over other brands offering similar product. Inspiring trust of the consumers on the brand will enable them to get a large consumer base. If the customers have faith or trust in our brand then they will not buy other brands even if they sell at a lower price.

Thus, the correct option is d, Search costs; quality; trust

3 0
3 years ago
Diversity initiatives do NOT include
MrRa [10]

Answer:

D. At-will employment

Explanation:

Don't be fooled! At-will employment actually refers to two things:

at-will termination, meaning an employer can fire you for any reason (other than illegal)

and at-will quitting, meaning the employee can quit at any time, for any reason.

An example of this would be a boss firing an employee for wearing a gray shirt to work, which is the boss's least favorite color. It's messed up, but under at-will employment, it can be done. Moments later, another employee leaves without warning or notice, and under the same rule, it can be done.

In contrast with the other options, D has nothing to do with diversity.

8 0
3 years ago
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