Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Example of Valuation of Bonds and Debentures
K is contemplating purchasing a 3 year bond worth 40,000/= carrying a nominal coupon rate of interest of 10 percent. K necessary rate of return is 6 percent.
What must he be willing to pay currently to purchase the bond if it matures at par?
Solution
Int = 10 percent x 40,000 = 4,000 p.a.
n = 3 yrs
Kd = 6 percent
M = 40,000
Vd = 4,000 / (1.06)1 + 4,000 / (1.06)2 +4,000 / (1.06)3 +4,000 / (1.06)3
= 4,000 x PVAF6%,3 + 40,000 x PVIF6%,3 = (40,000 x 2.673) + (40,000 x 0.840)
= 44,292
Logistics Management - Supply Chain Management The objectives of logistics management are to: Determine the best routes to market; air, rail or road Determine if w
How to calculate the present value of assignment??
Weighted Average Cost of Capital Weighted Average Cost of Capital or WACC is also called the overall or composite cost of capital. Since various capital components have diffe
Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa
Discuss the applicabilty of such cycle to poultry business(consider broilers)
Basic economic order quantity (EOQ) model This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions: The dem
Question: Unsatisfactory control of spare parts in a particular mechanical workshop is resulting in high carrying costs for some items and high stock-out costs for others. A st
Cost of capital: The cost of capital is a term related to the field of financial investment to refer to the cost of a company's funds (both equity and debt), from an investor'
A manufacturing organisation has three production cost centres, the cutting department, the processing department and the finishing department, and two service cost centres, the st
Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd