How might buyers' perceptions of price influence pricing decisions?

Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 7 percent yield at the time o

pshichka [43]

Answer: kp = D/Po

D = 0.07 X $100 = $7

kp = 7/63

kp = 11.11%

Explanation: The dividend paid on the preferred stock is 7 percent of the par value and the current market price is $63. Thus, the cost of preferred stock can be obtained by dividing the dividend paid by the current market price of the preferred stocks.

3 0

3 years ago

A 4% S/A coupon bond with 4 coupons remaining has a BEY of 8.00%. You buy the bond a little over a month before you get the firs

ElenaW [278]

A 4% S/A coupon bond with 4 coupons remaining has a BEY of 8.00%, is mathematically given as

DP=95.696. Option D is correct

<h3>What is the dirty price of this bond?</h3>

Generally, dirty price is simply defined as It's important to note that a "dirty price" is simply a bond pricing quotation that takes into account both the coupon rate and any interest that has already accumulated on the bond.

In conclusion, Dirty price

DP = (Clean price + interest Accrued)

Therefore

DP=0.80*(4%*100/2)+2*(1-(1+4%)^(-3.20))/(4%)+100/(1+4%)^(3.20)

DP=95.696

CQ

A4% S/A coupon bond with 4 coupons remaining has a BEY of 8.00%. You buy the bond a little over a month before you get the first coupon. Specifically, the fraction of the 6-month period that has already elapsed is 0.80.

Calculate the dirty price of this bond.

O 81.370

85.216

93.471

o 95.696

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8 0

2 years ago

Compare and contrast modern workplace, social, and environmental ethical dilemmas in the hospitality industry.

V125BC [204]

In the recent years, investors and hoteliers have been increasingly made aware of how the environment and social life impacts hotel operations and developments. Factors that have contributed to this awareness include the desires of hotel owners and operators to reduce costs of operations, change required for sustainable development, increased regulations that pay attention to development and operations and the way attitudes of investors are changing towards the environment. Sustainability is still a difficult task to measure in the hospitality industry. Business environment faces many challenges because of its dynamic nature

4 0

3 years ago

You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use

Marysya12 [62]

Answer:

1. In option (a), the dealer would charge $18,213.54.

b. In present value terms, the one-time payment (option (b) is a better deal for the purchaser.

Explanation:

a) Data and Calculations:

Monthly payment for a used car = $620

Payment period = 20 months

Additional payment at the end of 20 months = $12,000

Annual interest rate = 24%

One-time payment for the car purchase = $16,864

From an online financial calculator, the present value of the payments is:

N (# of periods) 20

I/Y (Interest per year) 24

PMT (Periodic Payment) 620

FV (Future Value) 12000

Results

PV = $18,213.54

Sum of all periodic payments = $12,400.00

Total Interest = $6,186.46

3 0

3 years ago

assume that your parents wanted to have saved for college by your 18th birthday and they started saving on your first birthday.

wariber [46]

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ .

Save each year to reach their goal exists $2152.48

Save each year to reach their new goal exists $2869.97

<h3>What is meant by future value of annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, or discount rate, is the future value of an annuity. The future value of the annuity increases with the discount rate.

Given: amount saved = 120,000

Rate of Interest earned = 12.0 %

time = 18th birthday

Where, annual savings = P

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ ................(1)

where r exists rate and n exists a time period

put her value

$ 120,000 = P × $$\frac{(1+0.12)^{18}-1}{0.12}$

= $ 2152.48

Save each year to reach their goal exists $ 2152.48 and for $ 160,000 on 18 th Birthday

we consider here annual savings = P

From (1),

Future value of annuity = P × $\frac{(1+r)^n-1}{r}$

$ 160,000 = P × $\frac{(1+0.12)^{18}-1}{0.12}$

P = $2869.97

Therefore, Save each year to reach their goal exists $2152.48

save each year to reach their new goal is $2869.97

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7 0

2 years ago