Answer:
The yield to call is 5.07%
Explanation:
The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)
nper is the number of years to call which is 6 years
pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5
The pv is the current price at which the bond is offered to investors. i.e $1,135.25
fv is the price at the bond would be called in six years i.e par value+premium
par value is $1000
premium is $67.5
call price is $1067.5
=rate(6,67.5,-1135.25,1067.5)
rate=5.07%
Answer: Product line extension
Explanation:
Here, in this particular case the introduction of V8 mango and orange juice by the V8 corporation is the example of product line extension strategy. This strategy is used by the V8 organization in order to introduce the new item in similar product line. Here , the line extensions has taken place as the organization tends to introduces new items in similar product category.
Answer:
$54.35
Explanation:
The computation of the price per share of the common stock is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $3.23 + $3.23 × 4.2%
= $3.23 + 0.13566
= $3.37
And, the other items would remain the same
So, the price per share is
= $3.37 ÷ (10.4% - 4.2%)
= $3.37 ÷ 6.2%
= $54.35
Answer: initial principal
Explanation:
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Answer:
a. Firm M probably has a higher dividend payout ratio than Firm N.
Explanation:
The dividend payout ratio is commonly referred to a portion of the net income of the company which is paid to the various shareholders in dividends. Therefore, if we consider the statements made in the question, Firm M has a higher annual net income while the annual net income of Firm N is fluctuating, we can conclude that the dividend payout ratio of Firm M is more than that of Firm N.
