A decrease in demand for cameras would likely be caused by increased abilities in cell phones for filming
Answer:
The best example I can think of that would integrate all of these concepts is when a business is looking to finance some sort of project and they are seeking financing either through the issuance of bonds or a loan from a bank. Some of the concepts would be important to both parties, while others would be more important to one than the other.
Cash Flow
This would be important to both parties. The business, to make sure they have enough cash flow to pay for the financing. And the financiers, for the same reason.
Ratio Analysis
This would be important to both parties for the same reason as above. Especially the "current ratio" (current assets / current liabilities) and the "working capital" ratio (current assets - current liabilities).
Financial Statements
This would be of most importance to the financiers. They would want to see the total picture of a company's financial strength.
Time Value of Money
This would be of most importance to the company itself. They would want to know if the project was worth the total amount they would be paying on the bonds or the loan
The answer to the question is to retake exams
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $244
Unitary variable cost= 195 - 8= $187
Fixed costs= 327,600 + 37,000= $364,600
<u>We need to determine the new pre-tax income:</u>
Sales= 244*10,000= 2,440,000
Total variable cost= 187*10,000= (1,870,000)
Total contribution margin= 570,000
Fixed costs= (364,600)
Pre-tax income= 205,400
Answer:
c. not affect the bond's duration.
Explanation:
The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.
On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.
Payment frequency would not change with the decrease interest rate.
The Coupon rate will also remain the same whether the interest rate increases or decreases.
