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Margarita [4]
2 years ago
10

The market value of equipment owned by a company is a sunk cost and should not be taken into account in deciding whether or not

to replace the equipment. a. True b. False
Business
1 answer:
-BARSIC- [3]2 years ago
6 0

Answer:

a. True

Explanation:

The sunk cost is the cost that is already incurred and not recovered in the future. Plus, it is also known as past cost.  

This cost is not useless at the time of decision-taking so it would be ignored.  

In the given question, the market value of the equipment is a sunk cost which determines that it will have no impact on the decision making so at the time of replacing the equipment, it would not be considered

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Strategically , a company may phase out or sell an sbu. this is known as
sdas [7]
Strategically, a company may phase out or sell an SBU this is known as DIVESTMENT.
Divestment is the process of selling an asset to obtain financial goals. Divesting involves a company selling its assets to improve its value and obtain higher efficiency.

6 0
1 year ago
Online aggregators are more comprehensive than the home listing service that real estate agents use. True or False
damaskus [11]

Answer:

The given statement is True. Online Aggregators are more comprehensive than the home listing service that real estate agents use.

Explanation:

Online aggregators are the programs or sites in the digital space which collects related items of content and link them and show them through their sites or programs.

Online aggregators puts the most relevant information that people are looking for. They link different aspects with each other to help people take decisions, like in this question, regarding the real estate.

Real Estate agents don't tell certain information to the client due to some laws or some insecurities of loosing the clients, but online aggregators make each and everything clear and even finds links between the choices of homes and display them on their sites. For example, an online aggregator may list the houses that are near to schools, hospitals, community service centers and also put the ranking of those schools and other services in that area, they tell the crime rate in that area, security, etc. But all such things are usually kept hidden by the real estate agents due to some overly restricted codes in their agreement of the licence from the government.

7 0
2 years ago
Read 2 more answers
A 10-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.5% (2.75% of face value every six months). The repor
Sveta_85 [38]

Answer:

YTM 5.2%  present value: $1,023.1644

YTM 1% present value:      $1,427.2169

YTM 8% present value:       $830.1209

YTM 8% present value:        $515.7617

Explanation:

YTM we will calculate the present value of the coupon payment

andthe maturity at each YTM rate given:

The coupon payment present value will be the present value of an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment 28 (1,000 x 2.75%)

time 20 (10 years x 2 payment per year)

rate          0.026 (YTM over 2 as the payment are semiannually)

27.5 \times \frac{1-(1+0.026)^{-20} }{0.026} = PV\\

PV $424.6800

The present value of the maturity will be the present value of a lump sum:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   20.00

rate  0.026

\frac{1000}{(1 + 0.026)^{20} } = PV  

PV   598.48

PV c $424.6800

PV m  $598.4843

Total $1,023.1644

Now, we will calculate changin the YTM the concept and formulas are the same, just the rate is diffrent:

<u>If YTM = 1% </u>

27.5 \times \frac{1-(1+0.005)^{-20} }{0.005} = PV\\

\frac{1000}{(1 + 0.005)^{20} } = PV  

PV c $522.1540

PV m  $905.0629

Total $1,427.2169

<u>If YTM = 8%</u>

27.5 \times \frac{1-(1+0.04)^{-20} }{0.04} = PV\\

\frac{1000}{(1 + 0.04)^{20} } = PV

PV c    $373.7340

PV m   $456.3869

Total    $830.1209

<u>If YTM = 15%</u>

27.5 \times \frac{1-(1+0.075)^{-20} }{0.075} = PV\\

\frac{1000}{(1 + 0.075)^{20} } = PV

PV c $280.3485

PV m  $235.4131

Total $515.7617

3 0
1 year ago
You own a stock with an average return of 15 percent and a standard deviation of 15 percent. In any one given year, you have a 6
raketka [301]

Answer:

0%

30%

Explanation:

Given:

Average return = 15%

Standard deviation = 15%

Computation:

On assuming 68% chance,

Lowest point  = Average return - Standard deviation  

Lowest point = 15% - 15%

Lowest point = 0%

Highest point  = Average return - Standard deviation

Highest point = 15% + 15%

 Highest point = 30%

Therefore, on 68%, Lowest point is 0% and highest point is 30%.

3 0
1 year ago
Trickle Corporation's 12 percent coupon rate, semiannual payment, $1,000 par value bonds mature in 25 years. The bonds currently
kap26 [50]

Answer:

The correct answer is 9.56%

Explanation:

Before tax cost of Debt = rate(nper,pmt,pv,fv) * 2

nper = 25*2 = 50

pmt = 1000*12%*1/2 = 60

pv = 1230.51

fv = 1000

Before tax cost of Debt = rate(50,60,-1230.51,1000)*2

Before tax cost of Debt = 9.56%

7 0
2 years ago
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