Answer:
Amount raised = $236,027.47
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
</em>
Value of Bond = PV of interest + PV of RV
The value of bond for Whipple Corp can be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 5.6% × 2000 × 1/2
= 56
Semi-annual yield = 6.34%/2 = 3.17
% per six months
Total period to maturity (in months)
= (2 × 25) = 50 periods
PV of interest =
56 × (1- (1+0.0317)^(-50)/0.0317)= 1395.49
Step 2
PV of Redemption Value
= 2000 × (1.0317)^(-50)
= 420.105
Price of bond
= 1395.49
+ 420.10
= $1815.60
The amount raised = price per bonds× Number of unit
= $1815.595× 260,000/2000= $236,027.47
Amount raised = $236,027.47
Answer:
D1 = $1.12
D2 = $1.25
D3 = $1.40
D4 = $1.48
D5 = $1.55
Explanation:
The formula to calculate dividends for next years is:

Where D_n is successive year dividend
D_(n-1) is previous year dividend
g is the growth rate (given as 12% = 12/100 = 0.12)
Initial dividend is $1, D_0
So, lets calculate the dividends for 5 years:
Year 1:
D1 = 1(1+0.12) = 1(1.12) = $1.12
Year 2:
D2 = D1(1+g) = 1.12(1.12) = 1.2544 = $1.2544
Year 3:
D3 = D2(1+g) = 1.2544(1.12) = 1.404928 = $1.404928
Year 4:
D4 = D3(1+g) = 1.404928(1+0.05)1.404924(1.05) = $1.4751744
Year 5:
D5 = D4(1+g) = 1.4751744(1.05) = $1.54893312
Obviously, it becomes half so it'll be 10%
Forgive me if its wrong. im answering as best as i can.
Answer: undeveloped country
Explanation: