Answer:
The truth about Macaulay Duration and Modified Duration is:
d. All are true.
Explanation:
Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.
On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.
Answer:
The answer is: A) the diffusion of economic power limits its potential abuse.
Explanation:
Ina market system, producers will be willing to offer what consumers are willing to pay. That means that consumers are "kings" if competition exists in a market. Consumers should be able to choose what product suits them best and satisfies their needs. A large number of suppliers guarantees more consumer satisfaction.
Problems start when competition starts to vanish and monopolies appear.
Answer:
Unilever is applying its understanding of internal consumer processes by using several points of the psychological core to market its product in order to create valuefrom customers in return. ... It creates a relationship between the customer and the brand.
Explanation:
Answer:
a. $848,000
b. No
Explanation:
a. The calculation of consolidated equipment balance as of December 31, 2018 is shown below:-
Consolidated equipment balance = Equipment balance of Haynes + Equipment balance of Turner + Allocation based on fair value - Depreciation
= $500,000 + $300,000 + $5,000 - (($5,000 ÷ 5 × 2)
= $500,000 + $300,000 + $5,000 - $2,000
= $848,000
2. No it will not affect by the investment method applied by the parent.
Answer:
$180
Explanation:
Expected return E(r) = 
D1= Next year's dividend
P1 = Next year's price
P0 = Current price
Since the beta is 1, it means this stock's return = market return = 20%
E(r) = 
0.20 = 
Multiply both sides by 155
31 = P1-149
Add 149 on both side s to solve for P1;
31+149 = P1
180 = P1
Therefore, the stock will sell at $180
