Answer:
1. Current bonds price = $81.86.
2. Yield to maturity = 22.16%.
3. 3. Expected Return = 7.5%.
Explanation:
Required Rate = Rf + beta*MRP
= 5% + 0.25*(15% - 5%)
= 5% +0.25*10%
= 5% + 2.5% = 7.5%
Required Rate = 7.5%
Expected Future Value = 70% x $100 + 30% x $60
= (0.7*$100) + (0.3*$60)
= $(70+18) = $88
Expected Future Value = $88
1. Current bonds price = 88/1.075 = $81.86
2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%
3. Expected Return = 7.5%
Answer:
B. It increased, but it less than doubled
Explanation:
Real GDP per person is defined as the total economic output divided by the total number of people. It is used in roughly indicating the standard of living.
An increased in the nominal GDP 3 times its formal will lead to a proportionate increase in the GDP per person statistics. But I was a noted that there was a 100% increase in population, meaning that population doubled. This indicates that the GDP per person increased but it less than double because of the population doubling in that period of time.
Answer:
Disadvantage of Corporate Form of Organization:
d. Government regulation
Explanation:
In recent times, government regulation of businesses appears to be regarded as a disadvantage of the corporate form of organizations. Governments intervene and regulate corporate entities whenever they fail to be self-regulatory. But, the regulations may appear to be so much that the corporate form of organization now looks like a disadvantage. Given the many corporate scandals, collapses, and misapplications of resources by corporate entities that have become the order of the day, government regulation is very important. Without government regulation, many corporate bodies will not be acting in the public interest. This is more so with public entity corporate organizations with diverse stakeholders and corporate managers who act as if they were running their own autonomous governments.
Answer:
$522
Explanation:
Calculation to determine How much did he pay if payment was made during the discount period
Amount paid =$550-(5%*$550)
Amount paid=$550-$28
Amount paid=$522
Therefore the amount he will he pay if payment was made during the discount period is $522
Answer:
Optimization
Explanation:
Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.
