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dedylja [7]
2 years ago
14

A bond with 15 detachable warrants has just been offered for sale at $1,000.00 . The bond matures in 25 years and pays a semi-an

nual coupon of $50 ($25.00 each six months). Each warrant gives the owner the right to purchase two shares of stock in the company at $45.00 per share. Ordinary bonds (with no warrants) of similar quality are priced to yield 7.00 percent. What is the value of one warrant
Business
1 answer:
ad-work [718]2 years ago
6 0

Answer:

$15.64

Explanation:

first we must determine the market value of the bond without the warrants:

PV of face value = $1,000 / (1 + 3.5%)⁵⁰ = $179.05

PV of coupon payments = $25 x 23.45562 (PV annuity factor, 3.5%, 50 periods) = $586.39

market value = $765.44

the market value of the 15 warrants = $1,000 - $765.44 = $234.56

market value per warrant = $234.56 / 15 = $15.64

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Nesterboy [21]

Answer:

Fixed Time Period Model

Explanation:

a fixed time period model ensures that level of inventory is checked regularly for all items. therefore from the question, if the vending company checks each machine and fills it with various product the inventory method is <u>Fixed Time Period Model</u><u>.</u>

3 0
3 years ago
What steps can Janet take to avoid falling prey to
julia-pushkina [17]

The steps that Janet can take to avoid falling prey to deceptive advertising are the following:

  • <em>Do her research</em>
  • <em>Know what she wants</em>
  • <em>Trust her judgement</em>

  • However, if Janet has already fallen prey to deceptive or false advertising, which is illegal, she can file a lawsuit against the company.

  • The lawsuit aims to recover damages from the company for misleading her into making a purchase or payment for goods or services whose advertising was deceptive.

  • It is generally unethical for a company to mouth a deceptive advertising.

Thus, Janet may not only trust online resources or purchase products from one retailer, she should carry out proper research based on what she wants before trusting her judgement.

Read more about deceptive advertising at brainly.com/question/24271514

3 0
2 years ago
Holmes Company produces a product that can be either sold as is or processed further. Holmes has already spent $96,000 to produc
Shtirlitz [24]

Answer:

Yes

Explanation:

The computation is shown below:

Particulars         Sales As Is   Process further     Incremental Accounting

Sales            $89,500       $605,000               $515,500

                                             (1,375 units × $440)

Less:

Additional Process costs $398,750                $398,750

                                          (1,375 units × $290)

Total           $89,500       $206,250                $116,750

Based on the incremental income, Holmes should process it further.

6 0
3 years ago
​Revel Inc., a cell phone manufacturer, decides to launch its new range of smartphones on the company's official Web site so tha
Nikolay [14]

Answer:

The answer is: Place

Explanation:

The four elements of the marketing mix (4 P´s) are:

  • Price
  • Product
  • Place
  • Promotion

Place (or distribution) refers to the point of sale.

Before Amazon, retailers would pay high prices for the right place to set up a store, "location, location, location" was everything. But internet sales shattered that scheme, just ask Sears or JC Penny about it.

With internet sales you can sell your product anywhere (all around the world) and many times you don´t even need a physical store. All you need are good logistics.

3 0
3 years ago
L.L. Bean, the founder of the company that bears his name, left a company legacy that consists of three fundamental core values:
Natalka [10]

Answer:somethings

Explanation:

7 0
3 years ago
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