Answer:
Well some people may be threatened by the person who is engaging in unethical behavior or some are just timid and keep to themselves, and just tolerate the unethical behavior, in order to not create conflict or not make enemies within the workplace. But either way we should always report unethical behaviors if we witness it, because if you do not take action it can create an atmosphere where misconduct spreads like wildfire.
Answer: Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.
Explanation:
OPTION 1
A buyer pays 60 monthly instalments and the interest rate is 0%. This tells us that there is no interest the value of the debt (Which is the price of 2003 Protege S hatchback) will not increase over the period of 60%, with this option time value of money is not considered.
Option 2
The buyer receives a Rebate of $3600 if the car is paid for in cash. The buyer qualifies for a loan at an effective rate of 7% per annum. The amount of a loan will be the Price of a 2003 Protege S Hatchback. Assuming the Loan will also ave a period of 60 months, The Total amount Payable over the period of 60 months equals Loan Monthly payments multiplied by 60 months. The buyer receives a rebate of $3600, therefore The Net Amount Payable for Option 2 financing is found by multiplying Loan monthly payments by 60 months then subtract the Cash Rebate received of $3600
Let us now compare the two options to find out how Large must the Car be for option A to be preferable.
Y = The Price of a 2003 Protege Hatch Back, Which also equals the amount of debt over a period of 60 years (option A has no interest)
Monthly Payments of a loan = P
number of Periods = 60 months
Debt in 60 months versus Loan payments multiplied by 60 months - rebate
Therefore Y ∠ P x 60 months - $3600
Option A which is the Dealership 0% financing option will be preferable if the Price of the car is less than the different of Loan monthly Payments minus Rebates.
Answer:
The correct answer is option b.
Explanation:
The equilibrium price and quantity of a product are determined through the interaction of demand and supply curves of the product.
An increase in the supply will cause the supply curve to shift to the right. While a decrease in the demand will cause the demand curve to move to the left.
This will cause the price of the product to decline. The change in the quantity, on the other hand, depends on the magnitude of change in the demand and supply.
Answer:
The answer is 8.90%
Explanation:
Solution
Given that:
The bond face value =$1000
Annual coupon rate =10%
Maturity rate =12 years
Price sold at =1080
Now we find the component cost of debt for use
Thus
The debt (cost) = Yield to maturity
So
YTM = Annual interest payment + [(Face value - Present price / Years to maturity] / [0.6(Price of bond) + 0.4 (principal payment)]
= $100 + [($1000 - $1080) / 12] / [0.6 * $1080 + 0.4 * $1000]
= $100 - 6.67 / $1048
= $93.33 / $1048
= 0.0890 or 8.90%
Therefore the debt for use is 8.90%
Answer:
D. All are legitimate constraints on the dividends that firms choose to pay to shareholders.
Explanation:
All of these are legitimate constraints.
For A, a company may simply have limited cash flows and as such can not pay any dividends. They may still be making profits and may declare dividends but the payment may not be made until subsequent period when cash is available.
For B, Bondholder covenants legally bind firms as issuing authorities from certain practices, for example a bond covenant may bind a firm to have interest cover of at least 2 times retained and as such there may be very little retained earnings left to pay for dividends.
For C, some forms of businesses like insurance companies or banks are restricted by law that they can not pay dividends if it means a capital reduction. These businesses have legal capital requirements that they must maintain and thus they cannot reduce capital in lieu of making dividend payments.
Hope that helps.
