Answer:
47,884.79 units of bonds
Explanation:
The units to be sold to arise $87.9 million will be equal to the
$87.9 million / divided by the bond price
The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity. These cash flows include interest payment and redemption value
The price of the bond can be calculated as follows:
Step 1
PV of interest payment
Semi-annual coupon rate = 5.92/2 = 2.96%
Interest payment =2.96%× 2,000= 59.2
Semi annual yield = 6.67%/2 = 3.335
PV of interest payment
= A ×(1- (1+r)^(-n))/r
= 59.2× (1-(1.03335)^(-2×20))/0.03335)
= 1,297.22
Step 2
PV of redemption value
PV = FV× (1+r)^(-n)
= 2,000 × (1+0.03335)^(-2× 20)
= 538.43
Step 3
Price of bond =
= 1297.22 + 538.43
= $1835.65
Step 4
Units to be used
= $87.9 million/ $1,835.65
= 47,884.79 units
Answer:
B and C are the same, and none of the answers are correct
Explanation:
Capital gain is the amount of money you earn after selling a property or investment. It's essentially (the price you sold it for) -- (the price you paid for it)
eg if you bought stock for $100 and sold it for $200, you'd have a capital gain of $100 (200-100)
It means that the currency that exist in forex market could be either sold or bought by anyone around the world.
for example ,
I live in United states. But through forex market, i could easily buy or sell Yen currency, which is used in Japan
Answer: Menu cost
Explanation:
Menu cost is the cost to a firm due to constant price changes. The name was coined from restaurants who changed their prices constantly by printing new menus.
For a wider definition, the menu costs also include the re-tagging of items, updating of computer systems, and hiring consultants in order to develop new pricing strategies and the costs of printing menus.
Answer:
$217.668
Explanation:
The computation of net income is shown below:-
ROE = Profit Margin × Total Asset Turnover × Equity Multiplier (Assets ÷ Equity)
ROE = (Profit Margin) × (Sales ÷ Total Assets) × (1 + Debt-Equity ratio)
16% = Profit margin × ($4,400 ÷ $2,985) × ( 1 + 1.20)
16% = Profit margin × 1.47 × 2.20
16% = Profit margin × 3.234
Profit margin = 16% ÷ 3.234
= 0.04947
Now as we know that
Profit margin = Net income ÷ Sales
0.04947 = net income ÷ $4,400
net income is
= $4,400 × 0.04947
= $217.668
