Mechaletti PR Ltd issued &500million of zero coupon bonds on Ghana Stock Exchange with ex- interest of ¢100, due for repayment in 5years time at par. Its current market price is €125. What is the company's cost of debt capital?

Answers

Answer 1

The company's cost of debt capital, represented by the yield to maturity (YTM), is approximately 5.61% (negative since the bond is trading at a discount).

To calculate the company's cost of debt capital, we need to use the formula for yield to maturity (YTM) on a bond. The yield to maturity represents the annualized rate of return an investor can expect to earn on the bond if they hold it until maturity.

Step 1: Calculate the annual interest payment (coupon payment):

The bond is a zero-coupon bond, which means it does not pay any periodic interest. Hence, the annual interest payment (coupon payment) is zero.

Step 2: Calculate the current market price of the bond:

The current market price of the bond is €125 million.

Step 3: Determine the face value (par value) of the bond:

The face value (par value) of the bond is ¢100 million.

Step 4: Determine the number of years to maturity:

The bond has a maturity period of 5 years.

Step 5: Calculate the yield to maturity (YTM):

We can use the following formula to calculate the YTM:

Market Price = \((Coupon Payment / (1 + YTM)^1) + (Coupon Payment / (1 + YTM)^2) + ... + (Coupon Payment + Face Value) / (1 + YTM)^n\)

Since the bond is a zero-coupon bond, the coupon payment is zero. Therefore, the formula simplifies to:

Market Price = \(Face Value / (1 + YTM)^n\)

Rearranging the formula to solve for YTM:

\((1 + YTM)^n\) = Face Value / Market Price

\((1 + YTM)^5\) = ¢100 million / €125 million

Using this equation, we can solve for (1 + YTM)^5 and then calculate YTM.

\((1 + YTM)^5\) ≈ 0.8

Taking the fifth root of both sides:

1 + YTM ≈ \(0.8^(1/5)\)

1 + YTM ≈ 0.943874

YTM ≈ 0.943874 - 1

YTM ≈ -0.056126

The approximate yield to maturity (YTM) is -0.056126, which is -5.61% (rounded to two decimal places).

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Related Questions

when _ I talk to you about the company report? can or could​

Answers

Answer:

the answer is CAN

Explanation:

when CAN i talk to you about the company report

Explanation:

can

can

can

can

can can

can

can

can

can

How important is money

Answers

Answer:

very important

Explanation:

money is a global income source for everyone. we all have different types but it is all still money. now say one country got rid of money and had people pay for stuff using other things. if china did that lots of different countries wouldn't be able to get stuff from there unless they had so much of that product they could just give it up.

Welfare includes all of the following EXCEPT
(a) Social Security
(b) Medicare
(c) Occupational Safety and Health Administration
(d) Medicaid

Answers

Answer:

(C) Occupational Safety and Health Administration

in the indirect method of cash flows, which of the following would be added to net income?
a. a decrease in sales tax payable
b. an increase in inventory
c. a decrease in supplies
d. an increase in prepaid rent

Answers

Answer:

C. A decrease in supplies

Explanation:

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Kristoffer needs to create cell names that match the column headings he has already created. Select the correct navigational path to set those names using the Create from Selection command. Click on the tab on the ribbon and look in the Defined Names gallery.

Answers

Answer:

formula

create from selection

top row

Explanation:

just took the question on edge

The correct navigational path to create cell names that match the column heading using the Create from Selection command is: Click on the Formula tab on the ribbon and look in the Defined Names gallery. Select the range of cells, including the row that includes the name you wish to use. Select Create from Selection. Select Top row and click OK.

What is a cell?

Cells are the boxes that appear in an Excel worksheet's grid. On a worksheet, each cell is identified by its reference, the column letter and row number that intersect at the cell's location.

Instead of creating cell names one by one, "Create from Selection" tool can be used to create cell names from a selection. The tool is in the "Defined Names" group of the Formulas menu.

Therefore, the correct path for using the Create from Selection command is first to click on  Formula tab and look in the Defined Names gallery. Then select the range of cells, including the row that includes the name  wish to use. Select Create from Selection. Select Top row and click OK.

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project managers have the capability to manage customer expectations and perceptions.

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As a project manager, you possess the crucial capability to manage customer expectations and perceptions effectively. By employing the following strategies, you can establish clear communication channels, understand customer needs, and ensure customer satisfaction throughout the project lifecycle:

Thorough Requirements Gathering: Initiate the project by conducting thorough requirements gathering sessions with the customer. Actively listen to their needs, objectives, and expectations, and document them accurately. Ensure a clear understanding of project scope, deliverables, timelines, and success criteria.

Transparent Communication: Maintain open and transparent communication channels with the customer throughout the project. Regularly provide updates on project progress, milestones achieved, and any potential challenges or risks. Address any concerns promptly and proactively, fostering a trusting relationship with the customer.

Setting Realistic Expectations: Manage customer expectations by setting realistic and achievable project goals and timelines. Clearly communicate the project's limitations, constraints, and potential risks. Provide a realistic timeline for completion, considering dependencies, resource availability, and potential unforeseen circumstances.

Regular Status Meetings: Conduct regular status meetings with the customer to review project progress, discuss any changes, and ensure alignment with customer expectations. Share relevant project documentation, such as project plans, timelines, and milestone achievements, to keep the customer informed and engaged.

Customer Feedback and Validation: Seek customer feedback and validation at key project stages. Share deliverables and prototypes for their review, allowing them to provide input and make necessary adjustments. Actively listen to their feedback, address concerns, and make modifications when feasible and aligned with project goals.

Quality Assurance: Prioritize quality assurance throughout the project by implementing rigorous testing and validation processes. Ensure that deliverables meet or exceed customer expectations and adhere to the defined quality standards. Seek customer input during testing and validation phases to ensure their satisfaction.

Post-Project Evaluation: Conduct a post-project evaluation session with the customer to assess their satisfaction and gather feedback for improvement. Discuss lessons learned, successes, and areas for growth. Use this information to enhance future projects and strengthen customer relationships.

By implementing these strategies, project managers can effectively manage customer expectations and perceptions, fostering a positive customer experience and building long-term relationships. The ability to communicate transparently, set realistic expectations, manage scope, and actively seek customer feedback contributes to the overall success and customer satisfaction of the project.

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How can product designers maximize the value they provide to
users? Discuss how products and services create value for
users.

Answers

The value created for users by products and services lies in their ability to address user needs, offer intuitive experiences, provide innovative solutions, and continuously improve based on user feedback. By incorporating these principles, product designers can maximize the value they provide to users and ultimately create products that resonate and have a positive impact on their target audience.

Product designers can maximize the value they provide to users by focusing on the following aspects:

1. User-Centric Design: Understanding the needs, preferences, and pain points of users is crucial. Conducting user research, user testing, and gathering feedback can help designers create products that align with user expectations and deliver value.

2. Problem Solving: Products that effectively solve a specific problem or fulfill a need for users tend to create significant value. Identifying the key challenges users face and designing solutions that address those challenges can enhance the value proposition of a product.

3. Usability and User Experience: Creating products that are intuitive, easy to use, and provide a seamless user experience contributes to their value. Well-designed interfaces, streamlined workflows, and clear instructions enhance user satisfaction and increase the perceived value of the product.

4. Innovation and Differentiation: Offering unique features, functionalities, or design elements can differentiate a product from competitors and provide additional value to users. Innovation can come in various forms, such as technological advancements, novel approaches to solving problems, or creative design solutions.

5. Quality and Reliability: Ensuring that products are of high quality, durable, and reliable helps build trust with users. When users have confidence in the product's performance and longevity, they perceive it as more valuable.

6. Personalization and Customization: Allowing users to tailor the product to their specific needs and preferences can greatly enhance its value. Offering customization options, adaptable settings, or personalized experiences can create a sense of ownership and increase user satisfaction.

7. Continuous Improvement: Iterative design processes that involve ongoing user feedback and product enhancements contribute to long-term value creation. Regular updates, bug fixes, and new features based on user insights demonstrate a commitment to providing value and maintaining a positive user experience.

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Technique for encouraging member banks to take on more loans
O Quantitative easing
O passive fiscal policies
O Board of Governers
O Troubled Asset Relief Program

Answers

Quantitative easing is a monetary policy strategy implemented by central banks to stimulate economic activity. It involves the deliberate purchase of assets, typically government bonds and mortgage-backed securities, from commercial banks and other financial institutions.

The goal of quantitative easing is to increase the money supply and reduce interest rates, thereby encouraging banks to lend more money to businesses and consumers.

During periods of economic recession or stagnation, when traditional monetary policy measures like cutting interest rates have limited impact, central banks may turn to quantitative easing as an additional tool. By purchasing assets from banks, central banks inject money into the financial system, providing liquidity and easing credit conditions.

The increased money supply allows banks to lend at lower interest rates, making borrowing more attractive for businesses and individuals. This, in turn, stimulates investment, consumption, and overall economic growth. By boosting lending and economic activity, quantitative easing aims to counteract deflationary pressures, support employment levels, and promote economic recovery.

It is important to note that quantitative easing is implemented cautiously, as it can have potential risks, such as inflation or asset price bubbles. Central banks carefully monitor the impact of their actions and adjust their quantitative easing programs as needed to maintain price stability and financial stability.

In summary, quantitative easing is a monetary policy strategy where central banks purchase assets to increase the money supply, lower interest rates, and encourage lending. It is used during periods of economic weakness when conventional monetary policy measures are insufficient to stimulate the economy. The objective is to spur economic activity, support borrowing, and facilitate economic recovery.

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what does the marketing concept require marketers to do? group of answer choices seek to satisfy customer wants and needs, but not worry about profitability. push their products through heavy advertising and selling. focus solely on reducing production costs. seek to satisfy customer wants and needs while maintaining profitability.

Answers

The marketing concept requires marketers to seek to satisfy customer wants and needs while maintaining profitability.

This means that marketers must prioritize understanding the needs and desires of their target audience, and then create products and marketing strategies that meet those needs in a profitable way. It is not enough to simply push products through heavy advertising and selling, or to focus solely on reducing production costs. Rather, successful marketing requires a customer-centric approach that balances meeting customer needs with achieving business goals.

This approach emphasizes understanding the target audience, delivering value, and building long-term relationships to achieve success in the marketplace.

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can someone recommend me some research topics for economics.would really appreciate if it is in a list​

Answers

Explanation:

here are some research topics for economics::

1. The effect of income changes on consumer choices

2. The effect of labor force participation on the economy and budget – A comparison

3. The impact of marital status on the labor force composition: A case of [your country] economy

4. The difference in the consumption attitude in [your country] over the last decade – Critical analysis of consumer behavior trends

5. The relationship between salary levels and ‘economic convergence’ in [your country]?

6. Analyzing salary inequalities in [your country] and the forces behind such inequalities.

7. The evolution of consumption in [your country] over the last 10 years: Trends and consumer behavior.

8. Dynamics of the Gini index as a reflection of the problem of inequality in income 

9. Cashless economy: The impact of demonetization on small and medium businesses

10 Privatization of Public Enterprises and its implications on economic policy and development

how might you use your knowledge of taxes to make sound financial decisions?

Answers

Answer: If you know about taxes you can make better financial descisions because most descisions are made thru taxes. Taxes are numbers and stats that allow us to determine whether or not to buy something.

Explanation:

taxes also show how inflated a market is

While engaging clients for a penetration test from highly regulated industries, which of the following is usually the MOST important to the clients from a business perspective

Answers

SOW and final report is usually the MOST important to the clients from a business perspective.

Statement of Work (SOW)

A Statement of Work is a significant document for a penetration testing project. If one is at the stage of executing an SOW, it must mean that one has completed the vetting process and soon be locking in a penetration testing vendor. It is required when a project affects vendors and other supporters in addition to the project team.

Final Report

A penetration test report is the conclusion of a technical protection risk assessment that works as a relation for business and technical groups. It performs multiple advantages in addition to a team's internal exposure management strategy.

The Five Phases of Penetration Testing

The five penetration testing stages are reconnaissance, vulnerability assessment, scanning, exploitation, and reporting.

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enter mia profit/loss for the 2 month

Answers

She profits more each month

1. Unit 8 provided several examples of businesses in which pricing plays an essential role in the business's identity. Think of an example of a business in your community whose reputation is also based on an aspect of pricing and explain how pricing forms the identity of the brand.

Answers

Answer:

Examples of businesses in which pricing plays an essential role in the business's identity are;

1) PEP, 2) Market Square, 3) Walmart, 4) Target, 5) Eko Hotel

Shoprite

Pricing forms the the identity of the Shoprite brand because the charges for the items sold are reduced to the lowest minimum, such that customers are attracted to their outlets as a customer can get a wide variety of popular, local, and rear at affordable prices

Explanation:


Susie asks you for investment advice as she's not sure if she should invest in a Roth IRA or a Traditional IRA She has a great job now and expects to have lower earnings and a lower marginal tax rate once she retires. Which would you recommend and why? Response should be a minimum of 100 words​

Answers

Susie anticipates a pay cut and a regular IRA can be a wise retirement savings plan because she will have a lower marginal tax rate when she retires.

What are regular and Roth IRAs?

When you make an after-tax contribution to a Roth IRA, your money grows tax-free, and once you reach the age of 59 and a half, you can typically take your funds without incurring any taxes or penalties.

A Traditional IRA allows you to make pre-tax or post-tax contributions, and your funds grow tax-deferred until you are 59 and a half years old.

With a Roth IRA, you can make after-tax contributions, see your money grow tax-free, and generally take withdrawals after age 5912.

A Traditional IRA allows for pre- or post-tax contributions, tax-deferred growth of your funds, and current income tax on withdrawals.

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Which of the following statements about the Federal Reserve (Fed) is (are) correct?
(a) The Federal Reserve system has twelve regional Federal Reserve Banks and each regional bank plays a role in regulating banks in its district as well as ensuring the health of the banking system.
(b) Although the Fed is known as the lender of last resort, it will only lend to banks so if a large firm in the chemical industry is denied a loan at the local bank, the firm cannot apply for a loan from the Fed
(c) The Federal Reserve has 14 regional banks. The Board of Governors has 7 members who serve 12-year terms.

Answers

Statement (a) is correct: The Federal Reserve system does indeed have twelve regional Federal Reserve Banks, and each regional bank plays a role in regulating banks in its district and ensuring the health of the banking system.

The regional banks also conduct research, provide banking services to depository institutions, and participate in the formulation of monetary policy.

Statement (b) is incorrect: The Federal Reserve, as the lender of last resort, has the authority to lend to banks, as well as to certain non-bank financial institutions in exceptional circumstances. It does not restrict its lending only to banks. However, the Fed's lending programs typically focus on providing liquidity to financial institutions to support the stability and functioning of the financial system, rather than lending directly to specific firms in other industries.

Statement (c) is incorrect: The Federal Reserve system consists of twelve regional banks, not fourteen. Additionally, the Board of Governors of the Federal Reserve System has seven members, not twelve. The members of the Board of Governors are appointed by the President of the United States and serve staggered fourteen-year terms.

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Most licensed architects are members of which association? A. ACSA B. AIA C. NAAB D. NCARB E. NVOB

Answers

Answer: It is B. AlA

Explanation:ALA is open to all architects and professions related to architecture. Our members hold individual memberships and specialize in all types of architecture.

Which of the following choices incur speculative risk?
Ο stocks
Ο fire insurance on a house
Ο options
Ο life insurance
Ο high-interest savings account

Answers

Answer: stock are speculative

Explanation:

The option given that can incur speculative risk is option a. stocks.

What is speculative risk?

The likelihood that an investment won't increase in value is known as speculative risk. Speculative risks are deliberate decisions, not merely the outcome of uncontrollable events.

Stocks are therefore one of the best known investments that have speculative risk because one cannot be sure of their increment in value, or their decrease in same.

Things like options and life insurance do not have speculative risk as they are based on choices and regular payments.

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Dotty's is a high fashion boutique, owned by entrepreneur Daisy Smith. The
business has been open a year, and specialises in designer outfits for women.
Daisy made the decision to set up the business after working in a high street
chain for five years.
Which of the following does NOT analyse how entrepreneurial skills will enable
Daisy's business to be more financially successful?​

Dotty's is a high fashion boutique, owned by entrepreneur Daisy Smith. Thebusiness has been open a year,

Answers

Answer: By being organized, Daisy will be abke to ensure that her business runs more smoothly and that she has stock in the shop when is is needed and the suppliers are paid on time. This could lower the levels of stress experienced by Daisy and lead to her enjoying a better work life balance.

Explanation:

The option that doesn't analyse how entrepreneurial skills will enable

Daisy's business to be more financially successful is that "By being organized, Daisy will be abke to ensure that her business runs more smoothly and that she has stock in the shop when is is needed and the suppliers are paid on time. This could lower the levels of stress experienced by Daisy and lead to her enjoying a better work life balance".

We should note that while other options shows that there will be an increase in customer, increase in sales and lead her to be more financially successful, this particular option only relates to her work-life balance and not have an impact on her financial stability.

What does setting a personnel policy before hiring employees allow you to do?
A. Provide employee salary information
B. Establish length of employment for each company department
C. Set expectations for employee behavior
D. Establish records of employee work behavior

Answers

Answer:

D

As it helps in appraising the employees weekly, monthly, or yearly work behavior.

Which of the following statements is correct? Marginal revenue equals total revenue divided by the quantity produced. For perfectly competitive firms, average total cost equals marginal cost at the long-run equilibrium. Marginal revenue always equals average revenue. Only for competitive firms does average revenue equal the price of the good.

Answers

The statement that is correct is "Only for competitive firms does average revenue equal the price of the good."

In perfect competition, firms are price takers, meaning they cannot influence the price of the product. Therefore, the price of the good is equal to the average revenue for the firm. Marginal revenue may not always equal average revenue, especially for firms operating in imperfectly competitive markets. Additionally, the statement that marginal revenue equals total revenue divided by the quantity produced is incorrect. Marginal revenue is the change in total revenue resulting from a one-unit increase in output, not the total revenue divided by the quantity produced. Finally, while it is true that for perfectly competitive firms, average total cost equals marginal cost at the long-run equilibrium, this statement is not directly related to the question of which statement is correct.

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The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even

Answers

Answer:

The correct answer is "2000 units".

Explanation:

Given:

Fixed cost,

F = $50,000

Variable cost,

VC = $100 per unit

Price,

P = $125 per unit

Let the units to be sold be "x".

Throughout the case of breakeven,

⇒ \(Total \ revenue=Total \ cost\)

⇒                \(125x=50000+100x\)

On subtracting "100x" from both sides,

⇒    \(125x-100x=50000+100x-125x\)

⇒                  \(25x=50000\)

⇒                      \(x=\frac{50000}{25}\)

⇒                         \(=2000 \ units\)

Assuming the workmans live in california, a community property state, and that diana and ryan file separately, what is diana's gross income minus expenses on the day care business?

Answers

Diana and Ryan file separately, Diana's gross income minus expenses on the day care business would be half of the total gross income minus expenses for the business.

In California, a community property state, the income and expenses from a business owned by a married couple are generally split evenly between the two spouses. To calculate Diana's gross income minus expenses, we would first need to know the total gross income and total expenses for the day care business. Once we have those numbers, we can use the following formula:

Diana's gross income minus expenses = (Total gross income / 2) - (Total expenses / 2)

For example, if the total gross income for the day care business was $100,000 and the total expenses were $50,000, Diana's gross income minus expenses would be:

Diana's gross income minus expenses = ($100,000 / 2) - ($50,000 / 2) = $50,000 - $25,000 = $25,000

Therefore, Diana's gross income minus expenses on the day care business would be $25,000.

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when effective leaders hear others complaining about a problem, which action would they most likely take?

Answers

When effective leaders hear others complaining about a problem, THE action would they most likely take is: To try to learn how big the problem really is.

Who is a leader?

A leader is person that possess a leadership skills  and help to direct and lead the people that are under him/her.

An effective Leaders does not  ignore problems but they  tend to  learn how big the situation  and try to figure and solve it.

Therefore the action would they most likely take is: To try to learn how big the problem really is.

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What sports have been founded by an entrepreneur?

Answers

An individual who plans, manages, and takes on the risk of a sport-related business enterprise is known as a sports entrepreneur. There are numerous instances of professional players succeeding in business after leaving sports.

The most well-known professional sport players who successfully transitioned from athletics to entrepreneurship include Payton Manning, David Beckham, John Elway, Magic Johnson, and Venus Williams, to name just a few. Many of you are familiar with his court movements. It is less typical to be aware of his entrepreneur side. However, how many companies does Shaq actually own? Even though the solution is not obvious, it is still amazing.

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How can I make money on the internet, List some that are easy for multiple people

Answers

Answer:

You can use some beermoney websites such as Swagbucks and RewardXP. You do surveys and tasks to earn money. I personally use RewardXP. You can cash out in PayPal, gift cards, and even prepaid gift cards that can be used as debit/credit cards. I have personally made $60 from RewardXP.

Help this is super confusing

Help this is super confusing

Answers

Answer: Reasons

Explanation: Crystals are collected for jewelry, sugar, salt, computer chips. So if it shows you all those examples it would be collected for many reasons. I hope this helped!

3. Which of the following is consistent with the basic economic postulate that incentives
matter?
Consumers buy fewer cars when the price of cars rises.
a.
b. Farmers produce less corn when corn prices decline.
C. A politician votes for a subsidy when it is in the best interest of a special interest group
within his district even if it might harm other voters.
d. All of the above.

Answers

All of the given option are consistent with the basic economic postulate that incentives matter.So, option (d) is correct answer.

What is economic incentives?

Economic incentives are financial perks offered to individuals to change their patterns of consumption and output in an economy. Most often, economic incentives are used to alter people's behavior such that desired results appear naturally.

Economics as a whole is based on the straightforward tenet that shifts in incentives have predictable effects on how people behave. Incentives are influenced by both monetary and non-monetary factors.

People will be less inclined to select something if it becomes more expensive. In turn, consumers will be more inclined to select an alternative as the benefits associated with it grow. This straightforward notion, often known as the basic postulate of economics, is an effective tool because it pertains to practically everything we do. Less people will select an option as it grows more expensive.

So, above postulate is satisfied by all options given to us.

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Sam is carrying a balance on his credit card of $500. The credit limit on the card is $1,500. What is his utilization rate?

Answers

The utilization rate of Sam that carrying a balance on his credit card of $500, that having a limit of $1,500, is 33%.

What is credit card?

Credit card is a plastic card that is used for withdrawing the excess amount from the bank account. This card is generally issued by the banks to their customers.

Sam's credit card use rate is 33 percent because he has a $500 load on his card with a $1,500 limit.

Therefore, the utilization rate is 33%.

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An item on sale costs 40% of the original price. If the original price was $95 , what is the sale price?

ITS 7TH GRADE BTW!

Answers

Answer:

Explanation:

If it's 40% OFF, then it would cost 57

but if it's 40% OF the original cost it would be $38