Answer:
Using the flow-equity method of valuation the borrowed is $67600,option B.
Explanation:
In order to determine the amount borrowed in executing the project, we make use of the below formula which shows that we are working backwards.
Amount borrowed=present value of cash inflows-levered cash flows
present value of cash inflows=net present value+initial investment
present value of cash inflows=$157000+$640000
present value of cash inflows=$797000
levered cash flows=$729400
Amount borrowed=$797000-$729400
amount borrowed =$67600
Answer:
Yield with 6-day maturity is 7.70%
Yield with 18-day maturity is 2.57%
Explanation:
The formula for yield on repurchase is given as:
y = ( PAR – P ) / P x (360 / t )
P=Purchase price
PAR=Repurchase price
t= number of days of the transaction
In first scenario,PAR is $39 million,P is $38.95 million and t=6
y=($39000000-38950000)/38950000*(360/6)
y=7.70%
In the second scenario,details remained the same except for t that is 18
y=($39000000-38950000)/38950000*(360/18)
y=2.57%
This implies the longer the maturity the lesser the yield since yield is computed on daily basis.
Answer:
Quantity demanded for balloons will increase.
Explanation:
According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.
This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.
Therefore,
Fall in the price of balloons will lead to increase the quantity demanded for balloons.
Answer:
the real GDP in 2019 is $200
Explanation:
The computation of the real GDP is shown below;
= Base year price × quantity produced in 2019
= $1 × 200
= $200
Hence, the real GDP in 2019 is $200
The above should be used to determine the real GDP in 2019 and the same should be relevant
Answer:
The answer is because people should know who is coming into office, but they do not have the right to know why someone is being fired for private reasons.
Explanation:
It’s important for the hiring discussion to be made public by the city council since it relates to the use of public funds to compensate these additional workforces. In contrast, firing processes do not relate to incurring funds and thus the public does not need to know about the reasons of the firing.
