Answer:
The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Explanation:
the duration of the perpetuity = (1+YTM)/YTM
= (1+0.04)/0.04
= 26 years
the weights of the bonds = w
5*w + 26*(1-w) = 15
5*w + 26 - 26*w = 15
21*w = 11
w = 0.52
Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Answer:
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
Dr Investment in Nursery supplies $7 million
Cr Investment Revenue $7 million
Dr Cash $9 million
Cr Investment in Nursery supplies $9 million
No Entry
Explanation:
Preparation of the appropriate journal entries from the purchase through the end of the year.
Dr Investment in Nursery supplies $66 million
Cr Cash $66 million
(To record purchase of 25% shares for $66 million)
Dr Investment in Nursery supplies ($28 million x 25%) $7 million
Cr Investment Revenue $7 million
(To record investor share of investee's net income)
Dr Cash (18 million shares x 25% share x $2 per share) $9 million
Cr Investment in Nursery supplies $9 million
(To record receipt of dividend)
No Entry
Answer:
C. increase in modernization by new investors.
Explanation:
Privatization is the transfer of ownership of property or business owned by government to a private entity.
Privatization generates capital to be invested in strategic areas and help to reduce the continuing drain on future natural resources. The new private investors causes economic growth by modernizing the acquired property or business from the government.
<span>Initial
step in the strategic marketing process is to begin planning by conducting a (SWOT)
analysis. SWOT analysis, also called SWOT matrix, means the Strengths, Weaknesses,
Opportunities, and Threats that summarizes the evaluation of elements for a
project or business.</span>