3. Management activities include all of the following except:

A 15 year, $1,000 par value bond has an 8% semi-annual payment coupon. The bond currently sells for $925. if the yield to maturi

Monica [59]

Answer:

Explanation:

First, find the YTM of the bond using the following inputs on a financial calculator;

N = 15*2 = 30 semiannual payments

PV= -925

Semiannual coupon payment; PMT = (8%/2)*1000 = 40

FV = 1,000

then CPT I/Y = 4.458%

Annual rate = 4.458% *2 = 8.92%

Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;

N = 10*2 = 20

Semiannual coupon payment; PMT = 40

FV = 1,000

Semiannual rate; I/Y = 4.458%

then CPT PV = 940.206

The price at year 5 will be $940.21

7 0

3 years ago

The selection of an appropriate discount rate for determining net present value of a particular investment proposal does not dep

Rasek [7]

Answer:

The answer is A.

Explanation:

Out of all the options, only option A is the odd one out. Discount rate for determining net present value of an investment is never dependent upon the present value of the proposal's future cash flows.

Discount rate is dependent upon option B because for selecting a particular investment, alternative investment opportunities must have been considered and if the discount rate for alternative investment was better, it would have been preferred.

Also for Option C. Discount rate for risky investment will be different from the less risky.

It is also dependent upon option D because the cost of equity is always higher than the cost of debt. So it will be different.

3 0

3 years ago

Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthl

ElenaW [278]

Answer:

Karim Corp

Cash Budget

July August September

Cash inflows: $20,000 $26,000 $40,000

Cash outflows: ($28,000) ($30,000) ($22,000)

Monthly cash flow: ($8,000) ($4,000) $18,000

Monthly interests: $0 ($76) ($116.76)

Initial cash balance: $8,400 $8,000 $8,000

Ending cash balance: $400 $3,924 $25,883.24

Required bank loan: $7,600 $4,076 $0

Payment of bank loan: $0 $0 ($11,676)

Total $8,000 $8,000 $14,207.24

Explanation:

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

4 0

3 years ago

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer ca

Helen [10]

By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can identify potential opportunities. Thus option B is correct.

<h3>What is a Customer?</h3>

A customer refers to an individual who purchases the product he may or may not be the consumer as the consumer is the person who is the end user of any product and utilize it.

Customers are the key elements of any busines, fulfilling customers' needs and desires will result in better customer satisfaction and helps business to identify potential opportunities to grow and seek improvement.

Therefore, option B is appropriate.

Learn more about Customers, here:

brainly.com/question/13735743

#SPJ4

The complete question is By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can?

Avoid cognitive dissonance

identify potential opportunities

Divide Geration

8 0

2 years ago

The Gabbana Company’s maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance cost

gayaneshka [121]

Answer:

The variable maintenance cost per unit would be $8.33 and the total fixed maintenance cost would be $267

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable maintenance cost per unit = (High maintenance cost - low maintenance cost) ÷ (High level of activity - low level of activity)

= ($1,100 - $600) ÷ (100 direct hours - 40 direct hours)

= $500 ÷ 60 direct hours

= $8.33

Now the fixed cost equal to

= High maintenance cost - (High level of activity × Variable maintenance cost per unit )

= $1,100 - (100 direct hours × $8.33)

= $1,100 - $833.33

= $267

5 0

3 years ago