Answer:
Brad would likely to react by reducing the efforts on future projects.
Explanation:
In accordance with the equity theory, it states that if an employee feels or perceive inequity, then they will try to create equitable exchanges of their rewards and their efforts. The common reaction in this situation would be is to reduce the efforts on further or future project.
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:
The yield to maturity is 9.127%
Explanation:
The yield to maturity is the yield or return on the bond as a percentage of its current price in the market. The formula to calculate the yield to maturity is:
YTM = C + {(F - P) / n} / {(F + P) / 2}
Where,
- C is the coupon payment / interest payment on the bond
- F is the face value of the bond
- P is the current market price of the bond
- n is the years to maturity
The coupon payment = 1000 * 0.113 = 113 per year
So, YTM = 113 + {(1000 - 1127.3) / 8} / {(1000 + 1127.3) / 2}
YTM = 0.09127 or 9.127%
Answer:
Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.
Answer:
Y= $18,194.05
Explanation:
This is a form of annuity that involves payment of equal amounts monthly for 5 years. These amount are made up of part of the interest and part of the principal.
Using the annuity formula
P= Y{1-(1/[1+r]^n)/r}
Where P = Initial loan amount
Y = yearly payment
r= interest rate
n= number of years
75,000= Y{1-(1/[1+0.068]^5)/0.068}
75,000= Y{1-(0.719689)/0.068}= Y{0.280311/0.068}
Y= 75,000/4.122227
Y= $18,194.05
