Answer:
a. The bond’s expected capital gains yield is zero.
Explanation:
Since the bonds are issued at par so capital gains yield is zero.
Even though I didn't see the video mentioned in the question, banks make most of their money through banking fees and investments.
If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%.
Using this formula
Return on investment = Profit margin ×Investment turnover
Where:
Profit margin=33.1% or 0.331
Investment turnover=1.20
Let plug in the formula
Return on investment = 0.331×1.20
Return on investment = 0.3972×100
Return on investment = 39.72%
Inconclusion If the investment turnover is 1.20 for one of its investment centers, the return on investment must be: 39.72%
Learn more about return on investment here: brainly.com/question/23823344
Answer:
Explanation:
a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=150,000/1.12+210,000/1.12^2+360,000/1.12^3
=557580.18
NPV=Present value of inflows-Present value of outflows
=557580.18-460,000
=$97580.18(Approx)=Value of factory
b.Hence since net present value is positive;factory is a good investment
(Yes)
