Business, 02.11.2019 04:31 afridi5250
New business ventures, inc., has an outstanding perpetual bond with a coupon rate of 8 percent that can be called in one year. the bond makes annual coupon payments and has a par value of $1,000. the call premium is set at $125 over par value. there is a 60 percent chance that the interest rate in one year will be 10 percent, and a 40 percent chance that the interest rate will be 5 percent. if the current interest rate is 8 percent, what is the current market price of the bond? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
Answers: 2
Business, 21.06.2019 14:30
What is the opportunity cost (in civilian output) of a defense buildup that raises military spending from 4.0 to 4.3 percent of an $18 trillion economy? instructions: enter your response rounded to the nearest whole number?
Answers: 3
Business, 22.06.2019 14:00
Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate
Answers: 1
Business, 22.06.2019 20:10
Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625
Answers: 3
Business, 23.06.2019 02:10
You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?
Answers: 1
New business ventures, inc., has an outstanding perpetual bond with a coupon rate of 8 percent that...
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