Answer:
e. None of these.
Explanation:
Step 1. Given information.
Taxable Dividend Yield = 9.7%
Tax rate on Dividend yield=15%
Interest rate=10%
Let Tax rate on Interest=X
Step 2. Formulas needed to solve the exercise.
Interest rate * (1 - x) = taxable dividend yield ( 1 - tax rate on dividend yield)
Step 3. Calculation.
0.10*(1-x)=0.097*(1-0.15)
0.10-0.10x=0.08245
0.10x=0.01755
x=0.01755/0.10
=0.1755
=17.55%
Step 4. Solution.
e. None of these.
b. 8
c. 4
d. 2
b. only Pete
c. both Noah and Pete
d. neither Noah nor Pete
Answer:
4 V's of Operation
The 4 V's of operation are Volume, Variety, Variation, and Visibility. Let us take Mrs. Happy Food Cafe with over 100 outlets in Fiacton Town, as an example to illustrate the 4 V's of operation.
Volume: As a food cafe, the volume of production that will be required for some foods and drinks is so high that their provision requires repetitive tasks. Based on this, procedures are normally standardized in order to achieve low cost for foods and drinks. However, it is harder to standardize services, since personal touches are added by the servers based on their individual perceptions and abilities.
Variety: Mrs. Happy Food Cafe tries to bring some variety in her offerings to satisfy the various needs of her customers. While variety is naturally low in the Food Cafe sector, some cafes like Mrs. Happy Good Cafe, try to satisfy customers' demands by varying the foods with Continental, African, Latino cuisines and dishes.
Variation: At Mrs Happy Food cafes, the food and drinks do not vary much as customers expect to be served the same quality of services at any of their cafes. This is because the processes are standardized to achieve low cost. So, the variation is moderate.
Visibility: Customers of Mrs Happy Food cafes are not able to see and track their experiences of the the processes for the food preparation that they order. But, they can track the processes for the services because services are consumed as they are offered. So, visibility is 'Moderate," as it is divided between the hard goods and the soft goods. With respect to goods visibility is 'Low.' However, with respect to the services the customers' visibility of processes is high.
Explanation:
The 4 V's of operation describe the different characteristics of the processes that various entities use to transform their inputs into outputs of goods and services. They may be high, low, or moderate. They include, volume, variety, variation, and visibility.
b government assistance is necessary to reach an efficient outcome.
c the initial distribution of property rights will determine the efficient outcome.
d the assignment of legal rights can prevent externalities.
Answer:
According to the Coase theorem, in the presence of externalities:
a. private parties can bargain to reach an efficient outcome.
Explanation:
Answer:
The price of the bonds at Janary 1 2018 is $70,824,063
Explanation:
Data:
Face Amount = F = $80,000,000
Time = n = 10 years * 2 (semiannually) = 20 semesters
Yield = r = 12% / 2 (semiannually) = 6% = 0.06
Payment = C = $80,000,000 * 10% / 2 = $4,000,000
Computation:
Bond Price = (C * (1 - (1 + r)^-n) / r) + (F / (1 + r)^n)
Bond Price = ($4,000,000 * (1 - (1 + 0.06)^-20) / 0.06) + ($80,000,000 / (1 + 0.06)^20)
Bond Price = ($4,000,000 * 11.46992) + $24,944,378.15089
Bond Price = $45,879,684.87426 + $24,944,378.15089
Bond Price = $70,824,063
Hope this helps!
Explanation:
I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.
Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.