Answer:
$880.31
Explanation:
Here for computing the new price of the bond we use the present value formula i.e. to be shown in the attachment
Given that,
Assuming Future value = $1,000
Rate of interest = 8.6% ÷ 2 = 4.3%
NPER = 8 years × 2 = 16
PMT = $1,000 × 6.5% ÷ 2 = $32.50
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the new price of the bond is $880.31
Answer:
Observational
Explanation:
hope it helps brainliest pls
Answer:
.b. It is appropriate to use the constant growth model to estimate a stock's value even if its growth rate is never expected to become constant
TRUE The multi-stage valuation considers different grow rates for the subsequent years
Explanation:
a. Two firms with the same expected free cash flows and growth rates must also have the same value of operations
FALSE as their cost of capital can differ.
c. If a company has a weighted average cost of capital WACC = 12%, and if its free cash flows are expected to grow at a constant rate of 5%, this implies that the stock's dividend yield is also 5%.
FALSE dividend yield is a relationship between price and dividend it doesn't considers the growth of the company, just current values.
d. The value of operations is the present value of all expected future free cash flows, discounted at the free cash flow growth rate
FALSE They are discounted at the difference between return and grow rate
e. The constant growth model takes into consideration the capital gains investors expect to earn on a stock.
FALSE It considers the capital gains as speculations
Answer:
Option C.
Explanation:
From the scenario presented above, Golden is not in any way liable for the inability to supply the total quantity of the 6-ounce yogurt containers, therefore, Golden can choose to reject the delivery of the 8-ounce containers.
Also, Golden can give Food Packaging a reasonable amount of time to enable them replace the containers, of Golden is not in a hurry to begin production and packaging.
Answer:
C) earning an economic profit.
Explanation:
Since the market is in long run equilibrium, the demand = the supply of haircuts, and an increase in the quantity demanded will increase the equilibrium price in the short run, generating economic profits at least until more suppliers enter the market and long run equilibrium is established again. Economic profit doesn't exist when the market is at long run equilibrium.
*Economic profit = accounting profit - implicit costs. So economic profit being $0 in the long run doesn't mean the businesses are not making an accounting profit.
