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Determine about the Zero Interest Bonds (ZIBs)
Very much alike DDBs, only crucial difference is that these are issued at face values (DDBs are issued at a discount to face value) and redemption is at a premium. Tax treatment of both is the same
a) Gross profit = $500,000 and Expenses = $100,000 for Year 2. b) Year 2 GPM = $500k / $1,000k = 50.0% Year 1 GPM = $400k / $850k = 47.05% Year 2 NPM = $400k / $1,000k =
Now that we have an understanding about price volatility characteristics of a bond, let us turn to the duration/convexity approach, which is an alternative
The main drawback of the tradition approach of valuation is that it discounts every cash flow using the same discount rate. For example, let us take 5-year (7.00 per ce
identify service marketing mix of facebook
Can you describe what the payoffs from lookback options depend on? Can you write in a concise notation the payoff of a floating lookback call? a. What is the payoff of a portfol
Does high operating leverage always mean high business risk? Explain. High operating leverage doesn't always mean high business risk. If the company's sales are quite steady
Lee Sun's has sales of $6,000, total assets of $5,000, and a profit margin of 10 percent. The firm has a total debt ratio of 40 percent. What is the return on equity?
Q. Miller Approach of irrelevance of dividends? Discuss the Modigliani as well as Miller Approach of irrelevance of dividends. What are its drawbacks? Ans. Modigliani with M
A campany estimate a cash requirment of 900000 the opportunity interst eate is 9% per anual the transaction cost for borrowing or withdrawing fund is 264.5
Q. What do you mean by Business Risk? Business risk is that portion of the unsystematic risk caused by the operating environment of the business. Business risk arises from the
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