Answer:
- 8 months for the first interest
- 6 months for the second
Explanation:
The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.
The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.
<span>To find overall assessment of company's strength below steps are followed:
1. Evaluating how well the strategy is working
2. Scanning the environment to determine a company's best and most profitable customers
3. Assessing whether the company's costs and prices are competitive
3. Evaluating whether the company is competitively stronger or weaker than key rivals
5. Pinpointing what strategic issues and problems merit front-burner management attention</span>
Answer:
Economies based on the exploration of raw materials were established in Sub-Saharan Africa.
Answer:
Positive.
Explanation:
A linear function has a positive relationship and as such an increase in one variable (input variable) causes an increase in the other variable (output variable) i.e the variables are directly proportional. Thus, the graph of a linear function is a straight-line and its slope is always constant.
On the other hand, nonlinear function has a negative relationship and as such an increase in one variable (input variable) causes a decrease in the other variable (output variable) i.e the variables are inversely proportional.
This ultimately implies that, the graph of a nonlinear function is a curved line and whose direction is constantly changing
In this scenario, the relationship between numbers of adjectives and newspaper sales must be positive because the higher the amount of adjectives put in the titles of her articles, the greater the number of newspapers that would be sold on a particular day.
Answer:
a. 6.7%
b. 12.0%
Explanation:
a. DDM
Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.
Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate
Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%
Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06
Return on equity = 6.7%
b. SML
Security Market line method uses calculates the cost of capital using following formula
Re = R
f + β ( Rm − R
f )
Rf = Risk free rate
β = stock beta
Rm = Market rate
Re =Expected rate
Re = 5.9% + 1.20 ( 11% - 5.9% )
Re = 12.02%
