Answer:
10.25%
Explanation:
The requirement which is Coupon rate can be calculated using EAR formula.
EAR = (1 + APR/n)^n - 1
EAR = (1 + 10.00%/2)^2 - 1
EAR = (1 + 0.1/2)^2 - 1
EAR = (1 + 0.05)^2 - 1
EAR = (1.05)^2 - 1
EAR = 1.1025 - 1
EAR = 0.1025
EAR = 10.25%
10.25% is the coupon rate for annually paying bond.
Answer:
I know their support was not unconditional though they seem friends.
Explanation:
If you are the Bhutanese student then I am sure this question came in 2017 BHSEC. Best of luck.
Answer: 17.22%
Explanation:
Effective interest rate is calculated by the formula:
= (1 + APR / Number of compounding periods) ^ Number of compounding periods - 1
Number of compounding periods = 12 months in the year
= (1 + 0.1599/12)¹² - 1
= 0.172155
= 17.22%
Answer:
True
Explanation:
Disruptive innovation refers to a technological change which adversely hampers the existing operations of an industry or it's players. For instance, the advent of USBs and compact discs affected the industry of magnetic tapes and audio cassettes.
Another latest example of disruptive innovation being Netflix which has kind of disrupted the normal operations and profitability of television channels.
Such disruptive innovators do not require to focus on outdoing competitors performance. All they need to take care of is they perform good enough to appeal and retain their customers.
Answer:
$236.25
Explanation:
Given that,
Recently dividend paid, D0 = $6.75
Growth rate of dividend, g = 5 percent per year
Required rate of return, rr = 8 percent
Therefore, the stock price is calculated as follows:
= [D0 × (1 + g)] ÷ (rr - g)
= [6.75 × (1+5%)] ÷ (8% - 5%)
= $236.25
Hence, the maximum you would be willing to pay for a share of its common stock if your required rate of return is 8 percent is $236.25.
