Answer:
5.657%
Explanation:
Data provided:
Face value = $1,000
Current market price = $640
Time of maturity, t = 8 year
Now,
the compounding formula is given as:
Face value = Current amount × 
where,
r is the rate i.e pretax rate of debt
n is the number of times the interest is compounded i.e for semiannual n = 2
thus, on substituting the values, we get
$ 1,000= $ 640 × 
or
1.5625 = 
or
= 1.0282
or
r = 0.05657
or
pretax cost of debt = 0.05657 × 100% = 5.657%
Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
In general, the people who have the power to select or approve the supplier are referred to as the "buyers". Most of the time, buyers want to go with a supplier who can offer the best product at the cheapest price.
Answer:
use a skill-based pay plan for the teams.
Explanation:
Based on this scenario it can be said that the best method for Dee to use would be a skill-based pay plan for the teams. A Skill-based pay (SBP) is a unique compensation method that is designed to reward individual employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge, and/or competencies. This will promote individual initiative without suppressing a cooperative work environment.
