The profits will peak and decline.
during this stage of the product development, the product is already widely accepted by the market.
Eventually, the newer and better product will start to appear and the previous one will started to lose popularity and decline in profits.
Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.
<h3>What is
a mortgage clause?</h3>
A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.
There are different types of clauses:
- Acceleration clause
- Due-On-Sale clause
- Prepayment Penalty clause
- Subordination clause
- Release clause
If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.
Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.
To know more about mortgage clause refer to: brainly.com/question/13964240
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Answer:
$6,000,000
Explanation:
Change in risk = 0 in 1,000 to 1 in 1,000 = 0 to 0.001 = +0.001
Change in wage = $30,000 to $36,000 = +$6,000
Therefore:
wage/risk = 6,000/0.001
= $6 million or $6,000,0000
The value of a human life for workers with these characteristics should a cost-benefit analyst use is $6,000,000 because workers are willing to receive an extra $6,000 for a 1 in 1,000 increase in risk of death, implying a value of life of $6 million)Value of human life for workers with these characteristics = $6 million .
In order words the workers require $6,000 to accept a death risk of .001. The value of life implied by this is $6,000/.001 = $6,000,000.
Answer:
The current price of the bond would be € 898.87
Explanation:
Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.
Where:
Coupon = 1,000*0.078=78
Yield = 0.089 (or 8.9%)
Face Value= 1,000
n = 20 coupon payments
So, everything should look like this.
Therefore, the price of this bond is € 898.87
Best of luck.
