Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
Answer:
Reduced expenses: One of the most practical benefits of demoting an employee is the reduction in the pay you will have to give them. In cases where the company has to cut costs or where the employee is simply not generating enough value to justify their salary, you can demote them to reduce expenses.
Explanation:
Answer:
5.57
Explanation:
Calculation to determine what Swifty inventory turnover ratio (rounded) in 2017 was
Using this formula
Inventory turnover ratio =Cost of goods sold/Average Inventory
Let plug in the
Inventory turnover ratio=$604000/[($89000+$128000)/2]
Inventory turnover ratio=$604000/($217,000/2)
Inventory turnover ratio=$604000/108,500
Inventory turnover ratio=5.57
Therefore Swifty inventory turnover ratio (rounded) in 2017 was 5.57