how did a change in the business model for bond rating agencies contribute to a conflict of interest today? group of answer choices

Office Supply Inc., facing increased competition in the stationery and office supplies market, should focus on developing a sustainable competitive advantage.

To achieve this, the company should prioritize cutting the cost of goods sold, quickly rolling out innovative new products, and enhancing the skills and assets of the organization.

By reducing costs, Office Supply Inc. can offer more competitive pricing to customers. Introducing new products will help differentiate the company from competitors and meet evolving customer needs.

Finally, investing in the organization's skills and assets will improve overall efficiency and foster a culture of continuous improvement. This combination of strategies will position Office Supply Inc. for long-term success in the market.

Learn more about sustainable competitive advantage at

https://brainly.com/question/31171964

#SPJ11

True, the risk premium (x) captures the risk banks are willing to take on when providing loans or making investments. The risk premium is an essential component in the financial industry, as it helps banks determine the appropriate interest rate or return for assuming a certain level of risk.

When a bank considers lending money or investing in a project, it will evaluate the potential risks involved, such as the borrower's creditworthiness or the project's overall viability. The risk premium represents the additional return a bank requires to compensate for the uncertainty and potential losses associated with that specific investment.

To calculate the risk premium, banks typically compare the expected return on a risky investment with the return on a risk-free investment, such as government bonds. The difference between these returns is the risk premium (x). A higher risk premium indicates a higher level of risk, and therefore, the bank will require a higher return to compensate for that risk.

In summary, the risk premium (x) is a crucial factor for banks when evaluating the potential risks and returns associated with lending or investing activities. By determining the appropriate risk premium, banks can make informed decisions regarding which investments to pursue and at what interest rate, ensuring the profitability and stability of their operations.

To know more about risk premium refer here:

https://brainly.com/question/28235630#

#SPJ11

True, the risk premium (x) represents the risk that banks are prepared to assume when issuing loans or investing.

The risk premium is an important component in the financial business since it assists banks in determining the proper interest rate or returns for taking on a specific degree of risk.

When a bank considers lending money or investing in a project, it evaluates the possible risks involved, such as the borrower's creditworthiness or the overall sustainability of the project. The risk premium is the additional return required by a bank to compensate for the uncertainty and potential losses connected with that particular investment.

Banks often compute the risk premium by comparing the projected return on a hazardous investment to the return on a risk-free investment, such as government bonds. The risk premium (x) is the difference between these two returns. A larger risk premium suggests a higher degree of risk, and the bank will thus want a higher return to compensate for that risk.

.To know more about risk premium refer here:

brainly.com/question/28235630#

#SPJ4

The correct answer is option A: Sell short the well-diversified portfolio.

If a well-diversified portfolio has a negative alpha, it means that it is underperforming relative to its expected return based on its level of risk. This suggests that there may be a mispricing in the market that is causing the portfolio to be undervalued.

By selling short the well-diversified portfolio, an investor can profit from its expected decline in value. This strategy involves borrowing shares of the portfolio from a broker, selling them on the market, and then buying them back later at a lower price to return to the broker. The investor would then make a profit on the difference between the sale price and the buyback price.

It is important to note that selling short involves significant risk, as there is no limit to the potential loss if the price of the portfolio rises instead of falling. Therefore, it is important for investors to carefully consider their risk tolerance and financial goals before pursuing this strategy.

For more questions like Price click the link below:

https://brainly.com/question/19091385

#SPJ11

It is important to note that no investment is entirely risk-free. While some investments carry lower risk than others, all investments carry some level of risk.

Even investments that have historically been considered safe, such as government bonds, can be subject to changes in interest rates or inflation.

It is also important to consider the specific investment and the risks associated with it. For example, investing in a savings account or a Certificate of Deposit (CD) may carry a lower risk of loss, but may also have a lower potential return than investing in stocks or real estate.

In general, the higher the potential return on an investment, the higher the risk associated with it. Therefore, while making money on an investment can be a positive sign, it does not necessarily mean that the investment is risk-free. It is important to consider the potential risks and to diversify investments in order to manage risk and potentially achieve a more balanced return.

for more such questions on investment

https://brainly.com/question/30894716

#SPJ11

The scenarios that are not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States are:

The leisure time enjoyed by households: The value of leisure time is not included in GDP, even though it may be a significant source of well-being for individuals and families.

The costs of overfishing and other overly intensive uses of resources: While GDP may increase due to increased fishing activity, it does not account for the negative impact on the environment and natural resources.

The value produced by doing your own laundry: Household production, such as doing laundry or cooking meals, is not included in GDP, even though it may contribute significantly to the overall well-being of individuals and families.

The purchase of wood from Brazil by a U.S. company to build new houses in the United States increases the component of GDP known as investment. It is counted as part of GDP because it represents a final good or service that is produced and sold in the U.S. economy.

To know more about GDP  click here

brainly.com/question/15171681

#SPJ11

With the exception of revenues changing proportionally with volume, all of the following are presumptions of cost-volume-profit analysis. Here option D is the correct answer.

Cost-volume-profit (CVP) analysis is a powerful tool that helps managers understand the relationship between cost, volume, and profit. It is based on a number of assumptions, which may or may not hold true in real-world situations. These assumptions include:

a. Sales mix for multi-product situations does not vary with volume changes. This assumption implies that the relative proportion of each product sold will remain constant, regardless of the volume sold. In reality, the sales mix may change due to a number of factors such as changes in customer preferences or marketing efforts.

b. Total fixed costs do not change with a change in volume. This assumption implies that fixed costs such as rent, salaries, and insurance remain constant regardless of the volume of production or sales. In reality, fixed costs may vary due to changes in production capacity or changes in the cost of fixed inputs.

c. Variable costs per unit change proportionately with volume. This assumption implies that the variable cost per unit remains constant regardless of the volume of production or sales. In reality, variable costs may change due to factors such as economies of scale or changes in the cost of raw materials.

d. Revenues change proportionately with volume. This assumption implies that revenue increases proportionally with increases in volume. In reality, revenue may not increase proportionally due to factors such as discounts, changes in product mix, or changes in selling price.

To learn more about revenues

https://brainly.com/question/28558536

#SPJ4

This relates to the consideration of cost when selecting a new facility location.

Tax incentives and lower real estate prices in a particular region can significantly impact the overall cost of establishing and operating a facility. By choosing a location with lower costs, a company can reduce its expenses and potentially increase its profitability. Therefore, the availability of tax incentives and lower real estate prices are often important factors that companies consider when selecting a new facility location.

You can learn more about consideration of cost  at

https://brainly.com/question/19558832

#SPJ11

a. The monthly payment of the mortgage facility would be US$1,862.30 assuming an interest rate of 8% and a loan term of 25 years.

b. Month | Beginning Balance | Payment | Interest | Principal | Ending Balance

1 | $262,500.00 | $1,862.30 | $1,750.00 | $112.30 | $262,387.70

2 | $262,387.70 | $1,862.30 | $1,747.90 | $114.40 | $262,273.30

3 | $262,273.30 | $1,862.30 | $1,745.80 | $116.50 | $262,156.80

4 | $262,156.80 | $1,862.30 | $1,743.60 | $118.70 | $262,038.10

c. Based on the computation of the monthly mortgage repayment, it may be financially beneficial for the company to purchase the house instead of paying rent forever. However, other factors such as the availability of funds for the down payment and the company's long-term plans should also be considered.

d. Three challenges of mortgage acquisition in Ghana include high-interest rates, difficulty in obtaining financing, and lack of transparency in the real estate sector.

e. To make mortgage acquisition more attractive in Ghana, the government should consider implementing policies such as reducing interest rates, providing incentives for mortgage lenders, and improving transparency in the real estate sector.

Additionally, the government could also consider introducing affordable housing schemes to help low and middle-income earners own homes.

For more questions like Payment click the link below:

https://brainly.com/question/15136793

#SPJ11

Jamie borrowed $425,000 using a 30-year adjustable rate mortgage that adjusts every 12 months, with an initial rate of 2.75% and rate changes limited to 2% per adjustment date.

To understand this mortgage, let's break it down step by step:

1. Jamie borrows $425,000 for a home loan with a 30-year term.

2. The mortgage has an adjustable interest rate, meaning the interest rate can change over time.

3. The initial interest rate is 2.75%.

4. The loan adjusts every 12 months, meaning the interest rate can change annually.

5. Rate changes at any adjustment date are limited to 2%. This means that the interest rate can increase or decrease

by a maximum of 2% each year.

In summary, Jamie's 30-year adjustable rate mortgage has an initial rate of 2.75% and can adjust by a maximum of 2% annually. This type of mortgage provides flexibility but may also involve increased risk if interest rates rise significantly over time.

To know more about interest rate  click on below link:

https://brainly.com/question/13324776#

#SPJ11

Answer:

Explanation:

Generally, in a business relationship, the principal and agent relationship requires being either an employee/employer relationship

Small companies are especially suited to using a focus strategy because they have limited resources, and a focus strategy allows them to concentrate their efforts on serving a niche market.

The focus strategy involves targeting a specific group of customers with unique needs or preferences and tailoring the company's products or services to meet those needs. This approach can be highly effective for small companies as it allows them to differentiate themselves from larger competitors who may have a more general market focus.

By targeting a specific niche, small companies can achieve higher levels of customer satisfaction and loyalty, which can lead to increased sales and profits. Additionally, a focus strategy enables small companies to operate with lower costs as they do not need to compete on a broad scale. This can help them achieve a sustainable competitive advantage and position themselves for long-term success.

Overall, the focus strategy can be a powerful tool for small companies looking to grow and succeed in competitive markets. By leveraging their unique strengths and targeting a specific customer segment, small companies can differentiate themselves from larger competitors and build a loyal customer base.

For more about limited resources:

https://brainly.com/question/439768

#SPJ11

The term of the bond is approximately 10.5 years.

To clear up this problem, we will use the following method to calculate the semi-annual coupon charge:

Coupon payment = Face value x Coupon price / 2

We realize that the face value of the bond is $100, and the annual interest charge is 7% compounded semiannually. To discover the semi-annual interest charge, we need to divide the yearly interest rate via 2 and convert it to a decimal:

Semi-annual interest price = (7% / 2) / 100

Semi-annual interest fee = 0.half

Subsequent, we want to calculate the present value of the bond using the given premium and yield:

[tex]PV = 100 + 36 / (1 + 0.0.5)^1 + 36 / (1 + 0.0.5)^2 + ... + 36 / (1 + 0.1/2)^{10[/tex]

The use of a monetary calculator or spreadsheet software, we are able to solve for the present fee and discover that it's far $1,209.36.

Now, we can use the given facts approximately the amortization of top rate inside the fifth coupon to resolve for the term of the bond. for the reason that amortization quantity is $1.00, the coupon payment inside the 5th period must be $36 - $1 = $35. consequently, we will installation the subsequent equation and solve for the variety of intervals:

$35 = $100 x 0.0.5 / 2 x (1 - 1 / (1 + 0.1/2 / 2[tex])^n) + $1[/tex]

Using a financial calculator, we can solve for n and find that the term of the bond is approximately 10.5 years.

Learn more about bond:-

https://brainly.com/question/25965295

#SPJ4

The value of the stock is estimated to be $55.85.

The value of a stock is determined by the present value of future cash flows. The stock in question just paid a dividend of $2.31 and is expected to grow at 22.01% for the next five years and then at 4.12% thereafter.

The stock also has a beta of 1.38, which implies that it is expected to outperform the market by 38%.

Given the risk-free rate of 3.50% and the market risk premium of 7.16%, the required rate of return for this stock is 11.66% (3.50% + 1.38 x 7.16%).

Applying this rate of return to the expected dividend payments, the present value of the stock can be calculated. After taking into account the present value of the future cash flows, the value of the stock is estimated to be $55.85.

Know more about cash flows here

https://brainly.com/question/29768594#

#SPJ11

If the cross-price elasticity of demand between beer and spirits is 0.15 and the price of spirits increases by 10 percent, then the quantity of beer demanded will decrease by 1.5 percent (0.15 x 10 = 1.5).

Cross-price elasticity of demand measures the responsiveness of demand for one product to a change in the price of another product. A positive cross-price elasticity of demand indicates that the two products are substitutes, meaning that if the price of one product increases, consumers will switch to the other product. The magnitude of the cross-price elasticity of demand indicates the strength of this relationship.

Income elasticity of demand measures the responsiveness of demand for a product to a change in income. A positive income elasticity of demand indicates that the product is a normal good, meaning that as income increases, demand for the product increases. A negative income elasticity of demand indicates that the product is an inferior good, meaning that as income increases, demand for the product decreases. The magnitude of the income elasticity of demand indicates the degree of responsiveness of demand to changes in income.

Learn more about elasticity here:

https://brainly.com/question/14450755

#SPJ11

In B2B marketing, the buying process typically involves multiple decision-makers and stakeholders within the organization. Therefore, the buying process is usually more complex and requires a greater level of communication and relationship-building between the seller and the buyer. In contrast, in B2C marketing, the buying process can often be simpler with fewer decision-makers involved.

In many cases, especially in business-to-business (B2B) transactions, the buying process involves multiple stakeholders with different roles and responsibilities, such as decision-makers, influencers, and end-users. The buying process may also involve various stages, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.

learn more about B2B marketing here:

https://brainly.com/question/14072661

#SPJ11

People are more likely to buy a winter coat that is priced at $99.99 than a coat that is priced at $100.00 because of a pricing strategy called "charm pricing."

Charm pricing is a marketing technique where a product is priced just below a round number, such as $99.99 instead of $100. The idea behind charm pricing is that consumers are more likely to perceive the price as being lower than it actually is and may be more likely to make a purchase as a result.

This is because consumers tend to process prices from left to right, focusing on the first digit rather than the second or third. So, a price of $99.99 is likely to be perceived as being in the $90 range, rather than the $100 range. Additionally, consumers tend to round prices down in their minds, so a price of $99.99 may be mentally rounded down to $99, making it seem like a better deal.

Overall, charm pricing is a common pricing strategy used by marketers to make their products seem more affordable and appealing to consumers.

Learn more about marketing :

https://brainly.com/question/15776003

#SPJ4

People are more likely to buy a winter coat that is priced at $99.99 than a coat that is priced at $100.00 because of a pricing strategy called "charm pricing." Charm pricing is a marketing technique.

where a product is priced just below a round number, such as $99.99 instead of $100. The idea behind charm pricing is that consumers are more likely to perceive the price as being lower than it actually is and may be more likely to make a purchase as a result. This is because consumers tend to process prices from left to right, focusing on the first digit rather than the second or third. So, a price of $99.99 is likely to be perceived as being in the $90 range, rather than the $100 range. Additionally, consumers tend to round prices down in their minds, so a price of $99.99 may be mentally rounded down to $99, making it seem like a better deal. Overall, charm pricing is a common pricing strategy used by marketers to make their products seem more affordable and appealing to consumers.

Learn more about marketing here:

brainly.com/question/15776003

#SPJ11

B. a manager's spouse drives the company car  would be not covered by a business auto policy.

Business auto policies are designed to provide coverage for vehicles owned or leased by a business and used for business purposes. It is intended to cover any liability arising out of the use of the vehicle, including bodily injury and property damage to third parties.

In conclusion, it is important for businesses to carefully review their business auto policies to understand the scope of coverage provided and to ensure that their employees and authorized drivers are aware of the policy provisions. It is also recommended to consider additional coverage options, such as non-owned auto liability coverage, to protect situations where the business or its employees may be held liable for accidents involving vehicles not owned by the business.

Know more about  business auto policy here:

https://brainly.com/question/29440371

#SPJ11

The EPS before and after the change in capital structure is $2.50 and $2.909, respectively. The correct answer is option B: $2.50; $2.90.

Nielson Motors, an all-equity financed firm, currently has 8 million shares outstanding, each trading at $20.00. The firm expects to generate EBIT of $20 million next year

To calculate the EPS before the change in capital structure, we use the formula:

EPS = EBIT / Shares Outstanding

EPS = $20,000,000 / 8,000,000 EPS = $2.50

Nielson is considering borrowing $50 million at an 8% interest rate, using the proceeds to repurchase shares.

The interest expense would be:

Interest Expense = $50,000,000 * 0.08

Interest Expense = $4,000,000

The new EBIT would be:

New EBIT = $20,000,000 - $4,000,000

New EBIT = $16,000,000

The number of shares repurchased is:

Shares Repurchased = $50,000,000 / $20.00

Shares Repurchased = 2,500,000

New Shares Outstanding:

New Shares Outstanding = 8,000,000 - 2,500,000

New Shares Outstanding = 5,500,000

The new EPS after the change in capital structure is:

New EPS = New EBIT / New Shares Outstanding

New EPS = $16,000,000 / 5,500,000

New EPS = $2.909

Learn more about EPS at

https://brainly.com/question/13785302

#SPJ11

Using the multi-stage dividend discount model, the intrinsic value of Coke can be calculated as the present value of future dividends. With a required rate of return of 7%, the intrinsic value is $29.54.

The present value of Coke's dividends can be calculated as follows:

Year 1: D1 = $1.00 × 1.15 = $1.15

Year 2: D2 = $1.15 × 1.15 = $1.32

Year 3: D3 = $1.32 × 1.05 = $1.39

After Year 3, dividends are expected to grow at a constant rate of 5%, so the dividend growth rate (g) is 5%.

To calculate the intrinsic value (P0) of Coke, we can use the multi-stage dividend discount model formula:

[tex]P0 = (D1 / (1 + r)^1) + (D2 / (1 + r)^2) + (D3 / (1 + r)^3) + (D4 / (r - g)) / (1 + r)^3[/tex]

Where:

D1 = Dividend at the end of Year 1 = $1.15

D2 = Dividend at the end of Year 2 = $1.32

D3 = Dividend at the end of Year 3 = $1.39

D4 = Dividend at the end of Year 4 = $1.39 × 1.05 = $1.46

r = Required rate of return = 7%

g = Dividend growth rate after Year 3 = 5%

Plugging in the values, we get:

[tex]P0 = ($1.15 / 1.07) + ($1.32 / 1.07^2) + ($1.39 / 1.07^3) + ($1.46 / (0.07 - 0.05)) / 1.07^3[/tex]

P0 = $1.075 + $1.188 + $1.204 + $26.692

P0 = $30.16

Therefore, the intrinsic value of Coke is $30.16 to the nearest cent.

Learn more about  dividend discount model,

https://brainly.com/question/31686730

#SPJ4

The correct answer is c. accounting fees.

Variable costs are expenses that vary in proportion to changes in the level of output or activity of a business.

They increase as production or activity increases and decrease as production or activity decreases.

Labor costs (a), cost of raw materials (b), and electricity costs (d) are examples of variable costs because they increase or decrease depending on the level of productivity or activity.

Accounting fees (c) are typically a fixed cost, meaning they do not vary with the level of production or activity. Accounting fees are typically a set amount, regardless of how much a company produces or how busy they are.Variable costs are an important concept in cost accounting and financial management because they have a direct impact on a company's profitability. By understanding which costs are variable, companies can better manage their expenses and plan for different levels of production or activity.

Learn more about productivity here:

https://brainly.com/question/30333196

#SPJ11

Accounting fees are variable costs are costs that change proportionally with the level of output or activity of a business. They are expenses that increase or decrease as production or sales increase or decrease.

The three examples of variable costs listed are:

a. Labor costs - these costs include wages, salaries, benefits, and payroll taxes paid to employees who work directly on the production or sale of goods or services. As production or sales increase, labor costs increase, and vice versa.

b. Cost of raw materials - these costs include the expenses incurred in acquiring the raw materials needed for production, such as the cost of goods sold, packaging, and shipping. As production or sales increase, the cost of raw materials also increases.

c. Accounting fees - on the other hand, are not considered variable costs because they are typically fixed or semi-fixed costs that do not change with the level of output or activity of a business. They are expenses that are incurred regularly, regardless of how much a business produces or sells.

d. Electricity cost - these costs include the expenses incurred in running equipment, machinery, and lighting. As production or sales increase, the electricity costs also increase.

Click the below link, to learn more about Accounting fees:

https://brainly.com/question/31525613

#SPJ11

The unlevered beta of Trico Inc is approximately -0.347.

The unlevered beta of a company can be calculated using the following formula:

Unlevered Beta = Equity Beta / (1 + (1 - Tax Rate) * (Debt / Equity))

where:

Equity Beta is the beta of the equity of the company

Tax Rate is the marginal tax rate of the company

Debt is the total debt of the company

Equity is the total equity of the company

Let's plug in the given values and calculate the unlevered beta for Trico Inc:

Equity Beta = 1.3

Tax Rate = 21%

Debt = $12B

Equity = Market Capitalization - Debt = $10B - $12B = -$2B (since the company has more debt than equity, the equity value is negative)

Unlevered Beta = 1.3 / (1 + (1 - 0.21) * ($12B / -$2B))

Unlevered Beta = 1.3 / (1 + 0.79 * (-6))

Unlevered Beta = 1.3 / (1 - 4.74)

Unlevered Beta = 1.3 / (-3.74)

Unlevered Beta = -0.347

Hence, the unlevered beta of Trico Inc is approximately -0.347 with two decimal points precision. Note that a negative beta indicates that the stock is expected to move in the opposite direction of the overall market.

To know more about beta visit:

https://brainly.com/question/25815044

#SPJ11

False. The contractual interest rate and yield to maturity of a mortgage loan are not the same when there are no fees, points, and prepayment penalties associated with the loan. The contractual interest rate is the rate that the borrower agrees to pay the lender for borrowing the money, and it does not take into account any additional fees or charges.

On the other hand, the yield to maturity is the total return the lender will receive over the life of the loan, taking into account all fees, points, and prepayment penalties.

Therefore, even if there are no additional fees or penalties associated with the loan, the yield to maturity will still be different from the contractual interest rate. It is important for borrowers to understand both rates and how they are calculated in order to make informed decisions about their mortgage loans.

To know more about interest rate refer here:

https://brainly.com/question/13324776#

#SPJ11

The sales support role that provides expertise in the form of product demonstrations and setup, and provides systems integration support is commonly known as a Sales Engineer.

A Sales Engineer works closely with the sales team to provide technical support and expertise throughout the sales process, helping to ensure that the product or solution being sold meets the customer's needs and requirements.

They often work with customers to understand their technical requirements, design solutions that meet those requirements, and provide product demonstrations and training.

In addition, Sales Engineers may provide ongoing technical support to customers after the sale, helping to ensure that they are satisfied with the product or solution and maximizing their return on investment.

Learn more about Sales Engineer at

brainly.com/question/19819958

#SPJ4

The sales support role that provides expertise in the form of product demonstrations and setup, and provides systems integration support is commonly known as a Sales Engineer.

A Sales Engineer works closely with the sales team to provide technical support and expertise throughout the sales process, helping to ensure that the product or solution being sold meets the customer's needs and requirements. They often work with customers to understand their technical requirements, design solutions that meet those requirements, and provide product demonstrations and training. In addition, Sales Engineers may provide ongoing technical support to customers after the sale, helping to ensure that they are satisfied with the product or solution and maximizing their return on investment.

Learn more about Sales Engineer here:

brainly.com/question/19819958

#SPJ11

The Range of return of the following is given as:

Any type of investment instrument, including real estate, bonds, equities, and fine art, can be subject to a rate of return (RoR). Any asset can be used with the RoR as long as it is acquired once and generates cash flow at some point in the future.

The attractiveness of various investments may be determined, in part, by comparing their historical rates of return to those of comparable assets. A needed rate of return is frequently chosen by investors before making an investment decision.

Return range for a security with returns of normal distribution:

When a security's returns are regularly distributed, they are symmetrical around the mean return amount. There is a 68% likelihood that the return in this situation will be within one standard deviation of the mean. A 95% possibility exists that the return will fall between two standard deviations of the mean. Additionally, there is a 99% likelihood that the return will fall within a three standard deviation range of the mean.

With the standard deviation([tex]\sigma[/tex])  and the mean (R) , different probability of the return to fall in a range are mentioned below.

Probability Range

About 68% → [tex]R \pm \sigma[/tex]

About 95% → [tex]R \pm 2\sigma[/tex]

About 95% → [tex]R \pm 3\sigma[/tex]

The approximate probability that your return on these bonds will be less than −3.9 percent in a given year:

[tex]R \pm \sigma =[/tex] (5.9 - 9.8) to (5.9 + 9.8)

= -3.9% to 15.7%.

Hence, the approximate probability that the return will be less than -3.9% is 16%.

With standard deviation = 9.8% and mean = 5.9%

[tex]R \pm 2\sigma =[/tex] (5.9 - 2x9.8) to (5.9 + 2x9.8)

= (5.9% - 19.6%) to (5.9% + 19.6%)

= -13.7% to 25.5%

Hence the required range of returns for 95 percent of the time for long term government bonds is -13.7% to 25.5%.

With standard deviation = 9.8% and mean = 5.9%

[tex]R \pm 3\sigma =[/tex] (5.9 - 3x9.8) to (5.9 + 3x9.8)

= (5.9% - 29.4%) to (5.9% + 29.4%)

= -23.5% to 35.3%

Hence, required range of returns for 99 percent of the time for long term government bonds is -23.5% to 35.3%.

Learn more about Range of return:

https://brainly.com/question/16251865

#SPJ4

Answer:  The answer is true

Explanation:

The estimated FCFE per share for Canfields in Year 1 is $3.97.

Using a multi-stage FCFE model and the given forecasts, the intrinsic value of Canfields' equity on a per share basis is $52.11.

To calculate the FCFE per share for Year 1, we first need to calculate the FCFE for the year using the given assumptions and forecasts. The FCFE for Year 1 is $9.74 million. Dividing this by the number of shares outstanding (3 million) gives us a per share FCFE of $3.97.

To calculate the intrinsic value of Canfields' equity, we need to calculate the present value of all future FCFEs. Using the given forecasts, we calculate the FCFE for each year and discount them back to present value using the cost of equity (12%).

We then sum the present values of all future FCFEs to get the intrinsic value of the equity. Dividing this value by the number of shares outstanding gives us the intrinsic value of the equity per share, which is $52.11.

For more questions like Cost click the link below:

https://brainly.com/question/30045916

#SPJ11

The required reserve ratio for this bank is 7%  (rounded to two decimals)

The required reserve ratio can be calculated as the required reserves divided by the total deposits:

Required reserve ratio = Required reserves / Deposits

In this case, the bank has $500 million in deposits and $35 million in required reserves, so:

Required reserve ratio = $35 million / $500 million

Required reserve ratio = 0.07 or 7% (rounded to two decimals)

Click the below link, to learn more about Required reserve ratio:

https://brainly.com/question/13981670

#SPJ11

BHP's operating profit from copper next year will be $0.20 billion if the price of copper is $1.00 per pound, $0.70 billion if the price is $1.25 per pound, and $1.20 billion if the price is $1.50 per pound.

To calculate the operating profit from copper next year if the firm enters into a contract to supply copper at an average price of $1.20 per pound, we need to subtract the total production cost from the revenue earned by selling the copper at the contract price.

The operating profit will be $0.30 billion.

For more questions like Profit click the link below:

https://brainly.com/question/15699405

#SPJ11

The appropriate price for the bonds is Rp. 6,944,316.

To calculate the appropriate price for the bonds, we need to use the present value formula for a bond, which is:

PV = C x [1 - (1 + r)^(-n)] / r + FV / (1 + r)^n

where:

PV = present value of the bond

C = annual coupon payment

r = yield to maturity (YTM)

n = number of years to maturity

FV = face value or nominal value of the bond

Plugging in the values given in the problem, we get:

PV = 1,200,000 x [1 - (1 + 0.10)^(-4)] / 0.10 + 10,000,000 / (1 + 0.10)^4

PV = 1,200,000 x [1 - 0.683] / 0.10 + 6,144,316

PV = 6,944,316

Therefore, the appropriate price for the bonds is Rp. 6,944,316

Learn more about yield to maturity

brainly.com/question/31521773

#SPJ11

Net income divided by sales is the formula for of these analytical measure return on assets.

How to evaluate a company's profitability: 1) Net Income - Net Sales = Rate of Return on Net Sales The amount of each Sales dollar that is earned as Net Income is shown as a percentage.

Several of the key profitability ratios have the following formulas: Sales / (Sales - COGS) = gross margin. EBIT divided by sales is the operating profit margin. Sales / Net Income is the formula for calculating net margin.

The net profit margin, or simply net margin, calculates the amount of net income or profit as a proportion of revenue. Net income divided by sales is the formula for of these analytical measure return on assets.

To Know more about Net income

https://brainly.com/question/20938437

#SPJ1