Answer:
D. 3.66%
Explanation:
For computing the after tax cost of debt we need to apply the RATE formula i.e to be shown in the attachment
Given that,
Present value = $2,120
Future value or Face value = $2,000
PMT = $2,000 × 6.6% ÷ 2 = $66.60
NPER = 18 years × 2 = 36 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 3.05% × 2 % = 6.10%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 6.10% × ( 1 - 0.40)
= 3.66%
Answer:
Answer :The annual incentive fees according to Black Scholes Formular =2.5
Explanation:
a)Find the value of call option using below parameter
current price (st)=$71
Strike price(X)=$78
Rf=4%
std=42%
time=1
value of call option=15.555
Annual incentive=16% x 15.555=2.5
The annual incentive fees according to Black Scholes Formular =2.5
(b) The value of annual incentive fee if the fund had no high water mark and it earned its incentive fee on its return in excess of the risk-free rate? (Treat the risk-free rate as a continuously compounded value to maintain consistency with the Black-Scholes formula.)
current price (st)=71
Strike price(X)=78
Rf=(e^4%)-1 = 4.08%
std=42%
time=1
value of call option=17.319
Annual incentive=16% x 17.319=2.77
Answer:
Check the following calculations
Explanation:
All-Equity Plan:
Number of shares = 15,000
Plan I:
Number of shares = 12,700
Value of debt = $109,250
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan I)
Price per share = $109,250 / (15,000 - 12,700)
Price per share = $109,250 / 2,300
Price per share = $47.50
Plan II:
Number of shares = 9,800
Value of debt = $247,000
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan II)
Price per share = $247,000 / (15,000 - 9,800)
Price per share = $247,000 / 5,200
Price per share = $47.50
Answer:
A. make Spiros responsible for sourcing wall hangings and window treatments only
Explanation:
Process loss can be said to be an action or deficiency in performance by an individual that prevents a team or group from reaching its potential or achieving its goal within a stipulated time.
The two main factors that contribute to process loss are:
i) Coordination loss: Here, there is too much wait time among all members of the group. Members must coordinate their individual tasks and that of other group members. Too much time is lost here because individuals efficiency differs.
ii) Motivational loss: This happens when individuals of a grouo fail to work as hard as they should. Some individuals may tend to put lesser efforts than their team members, and this leads to loss of team effectiveness in the given task and it affects the results of the group.
Here, Spiro's problem is related to motivational loss, as his efforts do not match that of his teammates'.
There are steps used in addressing process loss.
The best way for Marsha to address spiros' behavior is to make Spiros's task more discrete and identifiable, this involves making Spiro solo responsible for sourcing wall hangings and window treatments only. This will ensure Spiro does not depend on other teammates and he has a solo responsibility which he must fulfill.
Answer:
Integrity
Explanation:
Organizational culture consists of shared assumptions, values, and beliefs, which governs how people behave in organizations. These values determines how people behave in an organizational settings and there are different characteristics ranging from innovation, teamwork, stability etc. The main one that addresses degree people exhibit integrity and high ethical standards is Integrity.