Answer:
7.53%
Explanation:
Calculation for the discount rate of d(0,4)d(0,4)
The discount factor is : d=1/1+i
And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.
Therefore the present value of a bond with a maturity value of 1 will be;
Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)
Present value=1 / (1.07) (1.073) (1.077) (1.081)
Present value=0.748
The present value of a bond with a maturity value of 1 will therefore be 0.748.
Now, let calculate the discounting factor for the whole 4 years:
1 (1+d (0,4))‐⁴ =0.748
(1+d(0,4))=0.748‐¹/⁴
1+d (0,4) =1.0753
d (0,4)=0.0753
Therefore the discount rate will be 7.53%
Answer:
The current value of this stock should be $20.
Explanation:
The current value of this stock should be calculated by applying the formula to find present value of growth perpetuity. The formula is shown as below:
Stock price = D1 / ( Rate of required return - Growth rate of annual dividend)
in which: D1 = next year dividend = 2.20;
Rate of required return = 8%;
Growth rate of annual dividend = -3%.
So, Stock price = 2.2 / [8% - (-3%) ] = $20.
So, the answer is: the current value of this stock should be $20.
Answer
lost / lost
A company CEO created an ethics policy, made ethical training mandatory and installed feedback systems for ethics violation. When ethics violations were reported to the executives however, no changes or reprimands were made. Consequently, the policies ____lost____ value and executives __lost______ the respect of employees
Explanation:
Creating ethics policies is extremely important for an organization to align employee behavior with its organizational culture. Business values, when clearly and effectively established, help at various organizational levels, such as good team relationships, conflict resolution, and effective communication among all employees. In the above question, as there was no compliance with the ethics policy implemented by the CEO and no correction of the failures, there was a lost of value of the policy and lost of respect for employees.
Answer: Item A - Single Sourcing Strategy
Item B - Multiple Supplier Strategy
Explanation:
Item A:
This item is in high volume and has a low risk factor because there are multiple potential Suppliers present in the market. Because of this you can choose the SINGLE SOURCING STRATEGY because you can easily switch to others if one is unable to supply you with the good.
Item B:
This item has a low volume as the Suppliers are equally low. This means that the risk factor here is quite high. Because of these factors it is best to use a MULTIPLE SUPPLIER STRATEGY to mitigate the risk that one supplier will not have it. This was many options are available.
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