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Genrish500 [490]
2 years ago
5

Which of the following can cause an increase in the price of a discount bond? a. An increase in the YTM. b. A decrease in the YT

M. c. The passage of time. d. Both A and C e. Both B and C
Business
1 answer:
eduard2 years ago
3 0

Answer:

b. A decrease in the YTM.

Explanation:

Price of the bond is calculated using present value of future cash flows. while calculating present values of the cash flows or price of the bond, we use YTM for discount purpose. As we that higher rate gives lower Present value and Lower rate gives higher present value. Interest rate behave inversely with present value. So the reduction in YTM will increase the price of the bond.

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Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in ba
sweet-ann [11.9K]

Answer:

210 hours

Explanation:

The learning curve rate can be found by log75%

Ln0.75 = 0.12249

1 batch requires 200 hours

The 1500 units batch will require 200 hours

For 3000 units there will be two batches of 1500 units each

200 hours * 2 batches * 0.12249 * 4.5 = 210 hours

6 0
2 years ago
The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25 percent per year for the next t
djverab [1.8K]

Answer:

Explanation:

D1 = $1(1+0.25) = 1.25

D2 = $1.25(1+0.25) = 1.5625

D3 = $1.5625(1+0.25) = 1.953

D4 = $1.953(1+0.25) = $2.05

Current value = P0 =

= 1.25/(1+0.18) + 1.5625/(1+0.18)^2 + 1.953/(1+0.18)^3 + 2.05/(0.18-0.05) * (1+0.18)^(-3) =

=$12.96

Current value of the stock is 12.96

6 0
2 years ago
At an activity level of 3,000 units, North Corporation's total variable cost is $15,000 and its total fixed cost is $20,000. For
oee [108]

Answer:

$5 per unit.

Explanation:

At an activity level of 3,000 units, we have:

Variable cost per unit = Total variable cost / Units produced = $15,000 / 3,000 = $5

Since the variable cost per unit must be equal at both lowest and highest level of activities, theerefore, the variable cost per unit at 3,500 is also $5 per unit.

3 0
2 years ago
You are the manager in charge of setting the strategy for a new frozen yogurt company. Which of the following questions would be
AfilCa [17]

Answer:

B) How have consumer preferences in frozen yogurt flavors changed in the last five years

Explanation:

During the analysis phase of the AFI strategy framework we need to evaluate that how have consumer preferences in frozen yogurt flavors changed in the last five years. Since we know that AFI framework analysis we seek the planning analysis, formulating and implementation. Companies always go back to reassess their strategy based on changes in the environment.

7 0
2 years ago
The net profit margin ratio can mathematically be broken down as:______.
Helga [31]

Answer:

d. Tax impact x Capital structure impact x EBIT / Sales

Explanation:

The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues

Also the capital structure is the combination of equity, preferred stock, debt.

So mainly it is broken into tax impact, capital structure impact and net profit margin ratio

Therefore the option d is correct

4 0
2 years ago
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