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Ipatiy [6.2K]
3 years ago
6

A company's bond has a coupon rate of 4.00% and has 16 years remaining until maturity. The company's bonds pay interest semi-ann

ually. Due to a cash flow problem, the company will be unable to pay the interest payments for periods 8, 9, and 10. These missed payments will be repaid in one lump sum when the bond matures, without interest. If the Yield to Maturity (YTM) on similar bonds is 11%, what is the intrinsic value of this bond?
Business
1 answer:
kipiarov [429]3 years ago
6 0

Answer:

I used an excel spreadsheet to calculate the bond's value (see attached image). the bond's intrinsic value using a 11% discount rate is $452.08

Explanation:

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A company has a share price of $24.50 and 118 million shares outstanding. Its book equity is $688 million, its book debt-equity
Mrac [35]

Answer:

Enterprise value = $ 3,033

Explanation:

The enterprise value is full value of business. It includes total equity and debt. However cash and cash equivalent are not included in it. Detail calculations are given below.

Enterprise Value = Market value of equity/common stock + Total debt- Cash

MV of equity = 24.5 * 118 = $ 2,891

Total Debt    = 688/2*3   = $ 1,032

Cash                                 = ($ 890)

Enterprise value             = $ 3,033  

8 0
3 years ago
An employee in charge of collecting tickets at the entrance of a movie theatre lets her friends enter the theatre without paying
Nadusha1986 [10]

The type of rationalization made by the employee is based on <em>other employee are </em><em>doing </em><em>it.</em>

Rationalization refers to when individual attempt to justify a behavior with logical reasons even though those reason are not appropriate.

  • Here, the employee does rationalize giving free entry to her friend because other employee gives free popcorn to their friends.

Hence, the type of rationalization made by the employee is based on <em>other employee are </em><em>doing </em><em>it.</em>

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Read more about this here

<em>brainly.com/question/17246519</em>

8 0
3 years ago
Ramone has recently started working at an accounting firm. To get him up and running quickly, the firm has paired him with an ex
const2013 [10]

Answer:

<h2>In this case,the correct answer would be option c. or mentoring.</h2>

Explanation:

In any organisation,learning and development through mentorship constitutes acquiring new skills,knowledge and experience through a close relationship or association with someone who is more professional,experienced and established in a particular area of work or expertise.Mentorship basically includes close observation of the work methods,learning through imitation,following certain instructions and guidance from the mentor,obtaining support on various tasks and activities,incorporating valuable advice and recommendations in various activities and functions and so forth.In this particular instance,the firm has paired the employee with an experienced accountant to accelerate his work speed and enhance work efficiency or productivity through proper guidance,support and training obtained from the experienced accountant.Therefore,the firm expects improved work efficiency,enhancement of work performance and increased work speed through mentorship learning.

8 0
3 years ago
When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons
stellarik [79]

Answer:

Value added

Explanation:

Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.

The value of this difference help to determine the profit on products.

Higher the value of add, higher will be the charges of product and higher will be the revenue collected.

4 0
3 years ago
Which of the following is a good condition for bottom-up estimating? A. When the project involves strategic decision making B. W
Nataly [62]

Answer:

The correct option is C,when there is a fixed price contract

Explanation:

Bottom up estimating is a project management cost technique where the workers who are to work on the project make inputs in cost computation of the project.

Since the contract price of the project is fixed, the task left is for the agreed fee to be broken down into different areas of the project in order to determine the high cost and low cost areas in order that the cost attributed to a particular area of the project can be seen to be justified

6 0
3 years ago
Read 2 more answers
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