Micro environment essay

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

Anna007 [38]

Answer:

Coupon rate = 0.04292 or 4.292%

Explanation:

To calculate the coupon rate of the bond, we will, use the formula for the price of the bond. As the bond is an annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = x

Total periods (n)= 8

r or YTM = 0.051 or 5.1%

The formula to calculate the price of the bonds today is attached.

948 = x * [( 1 - (1+0.051)^-8) / 0.051] + 1000 / (1+0.051)^8

948 = x * 6.437166243 + 671.7045216

948 - 671.7045216 = x * 6.437166243

276.2954784 / 6.437166243 = x

x = $42.92191128 rounded off to $42.92

Thus, the coupon payment on bond is $42.92

As the coupon payment is calculated by multiplying the coupon rate with the face value of the bond, then the coupon rate will be:

Coupon payment = face value * coupon rate

42.92 = 1000 * Coupon rate

Coupon rate = 42.92 / 1000

Coupon rate = 0.04292 or 4.292%

6 0

2 years ago

What are your financing options when buying a new car?

stealth61 [152]

Everyone is different bc everyone doset make the same amount of money, or have the same amount of money in the bank.

Is there any multiple choice answers to this ?

4 0

3 years ago

Benton Company's sales budget shows the following expected total sales: Month Sales January $ 18,000 February $ 37,000 March $ 4

trapecia [35]

Answer:

The total cash receipt in the month of April amounts to $42,023

Explanation:

Total cash receipt in the month of April = March credit sales amount + April credit sale amount (25% is received) + April cash sales amount

= $29,400 × 67% + $32,900 × 25% + $14,100

= $19,698 + $8,225 + $14,100

= $42,023

Working Note:

March credit sales = March sales × 70%

= $42,000 × 70%

= $29,400

April Cash Sales = April Sales × 30%

= $47,000 × 30%

= $14,100

April Credit Sale = April Sales × 70%

= $47,000 × 70%

= $32,900

From the credit sale, 25% is received in the month of April

So,

= $32,900 × 25%

= $8,225

5 0

2 years ago

Drag each description to the correct location on the chart. Determine which direction a nation’s PPC will shift as a result of t

vampirchik [111]

<span>Several multinational companies close their factories in the nation because of its changing economic climate.
Shifts left. The maximum production of the economy is lower because their are fewer factories.

A mass e-learning initiative makes education cheaper and accessible across the nation.
Shifts right. This makes education less expensive, freeing up public and private money for investment and other uses which can further increase output.

Government money is illegally taken by increasingly corrupt bureaucrats and politicians.
Shifts left. this money is taken out of the economy where it could otherwise be invested in factors of production.

New economic policies facilitate the signing of new international trade agreements.
Shifts right. Increased trade opens up markets to foreign imports/exports and investment, increasing the maximum capacity of the economy. </span>

7 0

3 years ago

Cassiopeia is a country facing an acute financial crisis. Coupled with a negative growth? rate, the rate of inflation in the eco

Sveta_85 [38]

Answer:

These two statements are correct:

A. The level of private sector spending on real assets in Cassiopeia has traditionally been low.

If the economist Danny Cox is recommending increases in government investment in real assets, it must be because the private sector is not investing enough.

An economy with low levels of private investment is an economy that in the long-run will not grow because investing is what produces capital accumulation, and what faciliates technological change, and those two factors are the most important variables for economic growth.

E. Irrespective of what policy measure the government implements to combat the crisis, inflation in Cassiopeia is likely to increase further.

This statement is correct if it is referring to the two policies recommended by economist Cox and unionist Boyle. Niether an income tax refund, or an increase in government spending are measures that tackle inflation, and in fact, both could increase inflation.

A income tax refund would put more cash in the hands of the public, and if demand for money is low, this would increase the velocity of circulation, and the more rapidly money circulates, the higher the inflation rate according to the quantity theory of money.

And more government spending is a form of expansionary fiscal policy that could increase inflation if the government finances the expenses by printing money.

5 0

2 years ago

Micro environment essay​

Micro environment essay