Answer:
forward rates are determined by investors' expectations of future interest rates.
Explanation:
The expectations theory of the term structure of interest rates states that forward rates are determined by investors' expectations of future interest rates. It suggests that the predicted holding period rate of return of a bond of "x" number of time is equal to the short-term interest rate irrespective of its maturity.
The Expectations theory gives us the opportunity to predict the future outcome of short-term interest rates based on current long-term interest rates.
Answer:
d. Choose Option B because it has a higher NPV
Explanation:
The computation is shown below:
For Option A:
Investment = $10 million
Present Value of cash flows = Cash flow ÷ Discounting rate
= $2 ÷ 10%
= $20 million
Now
NPV = $20 - $10
= $10 million
We know that
IRR is the rate at which the NPV will be zero
So, 2 ÷ r - 10 = 0
r = 20%
For Option B:
Investment = $50 million
Present Value of cash flows = $6.5 ÷ 10% = $65 million
NPV = $65 - $50 = $15 million
we know that
IRR is the rate at which the NPV will be zero
So, 6.5÷ r -50 = 0
r = 13%
Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.
However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage
Answer:
All of the above.
Explanation:
Job analysis is when manager uses information available as a criteria for determining attributes required to perform a job.
In job analysis, information is made available to managers to know which employee is best suited for a particular role. It is also used to measure the capacity of employees whether they are being under or over utilized.
For effective job redistribution, job analysis is best recommended because it describes the work of current employee, working conditions and necessary educational certifications. Skills needed to perform on a role are also part of what is being considered in job analysis.
Answer:
The total amount of stockholders' equity is: $10,000
Explanation:
The accounts and values included in stockholders' equity are:
- Common stock 4,000 (1)
- Paid in capital 4,000 (2)
- Treasury stock -1,000 (3)
- Retained earnings <u> 3,000 (4)</u>
Total stockholders' equity 10,000
1 - Nominal value of outstanding shares.
2- Difference between the price paid by stockholders when shares were issued and nominal value.
3- Shares recovered by the company.
4- Earning accumulated by the company.
Answer:
D. Financial measures are lead indicators of future success.
Explanation:
This is said to be not true regarding financial and non financial measures of performance.
Businesswise, it is often debated whether a commonly perceived good company, as defined by characteristics such as competitive advantage, stable earnings, above-average management, and market leadership, is also a good company in which to invest. While these characteristics of a good company can point toward a good investment, this article will explain how to also evaluate the company's financial characteristics and how to know if a company is a good investment.