Answer: The answer is Trend extrapolation
Explanation:
Answer:
b) The company will incur a loss
Explanation:
The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.
At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.
As company should retire these bonds more than par value, the company incur a loss.
Option 'B is correct
The company incur a loss
Answer:
57,000
Explanation:
Planet company purchases goods worth $50,000July and also expect to purchase goods worth $70,000 in August
They pay 35% of tbs purchase in the month and 75% in the following month
Therefore the total expected cash disbursement can be calculated as follows
= (70,000×35/100)+(50,000+65/100)
= {70,000×0.35) + (50,000+0.65)
= 24,500+32,500
= 57,000
Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets. Like all private businesses, insurance companies try to market effectively and minimize administrative costs
Answer: Jordan's mobile communications device company is conducting an <em>industry analysis</em> as it considers <em>new strategies</em> for its five-year strategic plan. The analysis reveals that recent government deregulation has reduced the barriers to entry and <u>several start-ups are entering the industry.</u> The solution that could be a part of the the plan to counteract is to acquire the company's biggest supplier, bringing the capability of manufacturing critical component parts into the business structure.
Explanation: The <u>Strategic Plan</u><u> </u>of a company serves to establish the <em>objectives to be achieved and the methods</em> of action to achieve them .
It includes the meeting of the <em>team of directors</em> of the company and the ideas are written down so that the whole team finds out about the <em>strategy to follow </em>and the objectives, generally up to the following 5 years.
Some of the point to be clarify are for <em>example </em>:
- Opportunities
- Threats
- Economy
- Technology
- Size of the market
- Evolution of the market
Each company must see <u>the best option</u> in any case <u>to achieve </u>the goals that have been proposal on the strategic plan .
Is important to know the <em>kind of competitors and suppliers</em> that are in the market in order to face the difficulties on the most outstanding way that company has.
