Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer:
Theory X
Explanation:
It is correct to say that this manager is using the management approach known as theory X, which is a philosophy that says employees work only for the benefits they receive, and that they avoid job responsibilities, so management must be inflexible and follow the hierarchy of functions, with the manager being responsible for a high degree of supervision of the work and the responsibility of the employee for any error.
Theory X may not be ideal for the current administration, where the focus of organizations are people and the formation of a culture focused on innovation and collaboration.
D1 = $ 1.25
P0 = $ 27.50
g = 5 % = 0.05
F = 6 % = 0.06
Cost of equity, re = D1/ {P0 x (1- F)} + g
= $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05
= $ 1.25 / ($ 27.50 x 0.94) + 0.05
= $ 1.25 / 25.85 + 0.05
= 0.048356 + 0.05
= 0.098356 or 9.84 %
Answer:
c. The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluor. light bulbs fell.
Explanation:
If improvements in production technology reduce the price of incadescent light bulbs, the normal thing that would happen is that demand for this good would increase, because now people will be able to buy the good at a lower price.
Answer:
The retirement fund will last for 33 years and 7 months
Explanation:
We need to solve for time in an ordinary annuity
C $15,000.00
rate 0.004 (4.8% divide by 12 month)
PV $3,000,000
time n
we clear for n as much as we can and solve
now we use logarithmic properties to solve for n:
-403.16
this will be a value in months so we divide by 12 to get it annually
403/12 = 33,5833
we convert the residual to months:
0.5833 x 12 = 6.996 = 7 months
