Answer:
a coupon bond that pays a fixed coupon rate and does not mature
Explanation:
Answer:
Correct option is (A)
Explanation:
Companies that are price setters or price makers produce unique products as they have an advantage over others. They are price makers as they enjoy monopoly in the market.
Companies producing homogeneous products cannot be price setters as there are many other companies operating in the same market so prices are set by the market forces.
Answer:
Answer for the question:
Consider Optitron Enterprises, a firm that is currently funded entirely with equity. There are 50 million shares outstanding and each share has a current market value of $15. Eric Fredrickson, the CEO, has considered whether the company should take on some debt, as he has learned in his Executive MBA class that some debt can increase shareholder value. Mr. Fredrickson has estimated that the current risk free rate is 1.9% and the expected return on a broad market portfolio is 9%. The company’s marginal tax rate is 40% and its operating beta (also known as unlevered beta) is 0.75. Mr. Fredrickson has contacted an investment banker who has analyzed the firm’s operational risk and financial condition. The investment banker has provided the following schedule of anticipated debt costs at various levels of debt financing. Optitron would use any proceeds from a debt issue to immediately retire outstanding equity by repurchasing shares, also known as a recapitalization. wd rd 0 0.0% 0.20 6.5% 0.40 7.5% 0.60 8.5% 0.80 9.5% 1. Using the Hamada equation, estimate the firm’s beta at each level of debt. 2. Using the CAPM, estimate the firm’s cost of equity at each level of debt.
is given in the attachment.
Explanation:
Answer:
Which potential biological food safety hazard does smoking in food storage and prep areas cause?
Biological food safety hazards are enormous, food contamination on storage food materials can lead to food borne diseases as a result of contamination caused by micro-organisms ranges from bacteria, parasites among others.
Smoking could leave residue on food materials on storage, hence; increases the moisture content which enhances micro-organism growth and enables the food spoilage.
Explanation:
We can calculate the total inflation rate in an easily understandable manner. The total inflation rate is the total rate of change of the consumer price index (CPI) over a certain given period of time.
<h3>What is inflation?</h3>
A general increase in the prices of goods and services in an economy can be called Inflation. Whenever the general price level rises, each unit of currency purchases fewer goods and services; simultaneously, inflation accords to a reduction in the purchasing power of money.
The total inflation is calculated using this given formula:
((Target Year – Base Year) ÷ Base Year) x 100
Thus, the Total inflation rate refers to the total rate of change of the consumer price index (CPI) over a certain given period of time.
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