suppose that 6-month, 12-month, 18-month, 24-month, and 30-month zero rates are 4%, 4.2%, 4.4%, 4.6%, and 4.8% per annum with continuous compounding respectively. estimate the cash price of a bond with a face value of 100 that will mature in 30 months and pays a coupon of 4% per annum semiannually.

Answers

Answer 1

Bond valuation is a method for figuring out an individual bond's hypothetical fair value.

What is bond valuation?Bond valuation is a method for calculating the hypothetical fair value of a specific bond. A bond's face value, sometimes referred to as its par value or cash flow, and the value of the bond at maturity are both calculated as part of the valuation process.Finding a bond's fair market value is known as bond valuation. The present value of the stream of cash flows that a bond is anticipated to provide is its theoretical fair value, just like it is for any other security or capital instrument.Here is a presentation of the bond value formula: Price=Price=(Coupon×1−(1+r)−nr)+Par Value(1+r)n Price = ( Coupon × 1 − ( 1 + r ) − n r ) + Par Value ( 1 + r ) n ,  where: The cash flow received prior to the par value is known as the coupon. The quantity of interim compounding periods is n.

Given data :

To estimate the cash price of a bond, the first step is to calculate the coupon payment per period. In this case, the bond pays a coupon of 4% per annum semiannually. Given that the face value of the bond is $100, the coupon payment per annum is 0.04 x $100 = $4. Because the coupon is paid every six months (semiannually), the coupon payment per six month is $4/2 = $2. This means that the bondholder will receive a coupon of $2 in 6, 12, 18, 24, and 30 months. In 30 months, the bondholder will also receive the face value of $100. Therefore, the bondholder will receive $2 in 6, 12, 18, and 24 months, and $102 in 30 months.

The second step is to calculate the present values of coupon payments and face values of the bond. The formula for calculating the present value of $x with continuous compounding and interest rate of r is:

PV = [tex]xe^{-r*t}[/tex]

where t is the number of years to receive $x. This requires an information on the interest rates to use. We were given the 6-month, 12-month, 18-month, 24-month, and 30-month zero rates. These zero rates are the interest rates earned on today's investments which lasts for 6, 12, 18, 24, and 30 months, respectively. These rates can be used to find the present values of coupon payments and face values of the bond.

Given that the 6-month zero rate is 4%, the present value of the $2 received in 6 months (0.5 year) is 2[tex]e^{-0.04 * 0.5}[/tex] = 1.9604

Given that the 12-month zero rate is 4.2%, the present value of the $2 received in 12 months (1 year) is  2[tex]e^{-0.042 * 1}[/tex]  = 1.9177

Given that the 18-month zero rate is 4.4%, the present value of the $2 received in 18 months (1.5 years) is 2[tex]e^{-0.044 * 1.5}[/tex]  = 1.8723

Given that the 24-month zero rate is 4.6%, the present value of the $2 received in 24 months (2 years) is  2[tex]e^{-0.046 * 2}[/tex]  = 1.8242

Given that the 30-month zero rate is 4.8%, the present value of the $102 received in 30 months (2.5 years) is 2[tex]102e^{-0.048 * 2.5}[/tex]  = 90.4659.

The last step is to calculate the cash price of the bond by summing the present values of coupon payments and face value of the bond calculated in the previous step. Therefore, we have that, the cash price of a bond is 1.9604 + 1.9177 + 1.8723 + 1.8242 + 90.4659 = 98.0405. That is, the cash price is estimated to be $98.04.

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Related Questions

all of the following are period costs except question content area bottom part 1 a. research and development expenses. b. distribution expenses. c. direct labor expenses. d. marketing expenses.

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All of the following are period costs for direct labor expenses. The Option C is correct.

What are considered as part of period costs in manufacturing?

Period costs are costs that are not tied to or related to the production of inventory in managerial and cost accounting. Selling, general, and administrative (SG&A) expenses, marketing expenses, CEO salary, and rent expense for a corporate office are all examples.

Because the costs are unrelated to inventory production, they are expensed in the period in which they are incurred. In short, period costs are all costs that are not involved in the production of a product (product costs).

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from the perspective of ownership risk, the best form of business organization is the (a). Partnership, (b) S Corporation, (c) Sole Proprietorshop, (d) Corporation

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The corporation is the ideal type of commercial structure from the perspective of ownership risk.

What is the business ownership?The corporation is the ideal type of company structure from the ownership risk perspective. Shares options are the chance to purchase stock for a predetermined price and for a predetermined amount of time. The biggest financial benefit of having a home is the ability to deduct mortgage interest and real estate tax payments, which lowers federal income taxes.Each of the three often encountered company structures—a sole proprietorship, a partnership, and a corporation—has its own advantages and drawbacks. What you need to know about each one is outlined below. an ongoing financial commitment. You are accountable for performing any maintenance on your house, from simple fixes like mending a leaky faucet to more significant ones like replacing the roof.

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first mortgage bonds are senior in priority to claims of second mortgage bonds. debentures are long-term bonds that are not secured by a mortgage. subordinated debentures are bonds having

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During liquidation, bonds with subordinated debentures have claims on assets only after a senior debt has been paid in full.

In the event of a liquidation, first mortgage bonds are deemed to have a superior claim on the company's assets and would be paid out first. Second mortgage bonds are regarded as junior in precedence to first mortgage bonds' claims. Debentures are long-term, unsecured bonds that lack a mortgage on particular assets.

On the other hand, subordinated debentures have claims on a company's assets only after senior debt, such as first mortgage bonds, has been fully repaid in the case of liquidation. This indicates that only when the holders of senior debt had been fully paid would holders of subordinated debentures be compensated.

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a project objective is the tangible end product that the project team must produce or deliver. group of answer choices false true

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A project objective is the tangible end product that the project team must produce or deliver. - True

In an organisation, what must be completed is defined by a certain objective. The project team must generate and deliver the actual finished product. The end product or deliverable, the timetable, and the budget are all established in the project objective. Additionally, it is anticipated that the work scope would be completed in a professional way and to the client's satisfaction.

The project team is working towards a certain objective or desired result. It is a declaration of what the project's goals are, such as enhancing a business procedure, creating a new product, or putting in place a new system. It offers a precise description of what project success looks like and aids in uniting the project team and stakeholders around a single objective.

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define the best way in which you can shift your purchasing power from high-earning periods to low-earning periods of life? multiple choice question. during low-earning periods invest your savings in financial assets (stocks/bonds). invest in a collection of luxury automobiles. spend all your disposable income as soon as you earn it. during high-earning periods invest your savings in financial assets (stocks/bonds).

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during high-earning periods invest your savings in financial assets (stocks/bonds). so the option D is the correct answer.

Investments are sums of money used to purchase assets with the expectation that their value will increase over time. A present resource, such time, money, or effort, must be lost in order to invest.

Investments are made in the financial realm in order to gain from the asset that is being used. The return may comprise a gain (profit) or loss realised through the sale of a residence or investment, an unrealized capital gain (or loss), investment income like dividends, interest, or rental income, or a combination of capital gain and income. Due to fluctuating currency rates, the return may potentially include foreign exchange gains or losses.

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carol wants to have $13,000 when she turns 30. right now, she's 23 (7 years difference). she has $5,500 that she can invest in a mutual fund. if she leaves the money in this account for the full 7 years and it earns 12.5%, compounding quarterly, how much will be in the account?

Answers

After 7 years of compounding quarterly with an interest rate of 12.5%, Carol will have approximately $12,013.59 in the account.

To calculate the amount of money Carol will have in 7 years, we can use the formula for compound interest:

A = P * [tex](1 + r/n)^(nt)[/tex]

where:

A is the final amount

P is the initial amount ($5,500)

r is the interest rate (12.5%)

n is the number of times interest is compounded in a year (4 times)

t is the number of years (7)

First, we need to convert the interest rate to a decimal:

r = 12.5% / 100 = 0.125

Next, we can plug in the values into the formula:

A = $5,500 * [tex](1 + 0.125/4)^(4 * 7)[/tex]

A = $5,500 * [tex](1.03125)^28[/tex]

A = $5,500 * 2.1843878

A = $12,013.59

This means she will fall short of her goal of $13,000, so she may need to consider other options to reach her savings target.

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a case study that elaborates on a company's journey from a startup to a multinational company is most likely an example of an .

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The correct answer to the question above is "analytical report".  A case study that elaborates on a company's journey from a start-up to a multinational company is an example of an analytical report.  That is because an analytical report presents the details of a case as well as an analysis of its events and characters.

An analytical report is a business report that use by stakeholders to determine the best decision or action about its business. Analytical reports usually have a structure consisting of a title page, table of contents, intro, methodology, body section, conclusion, recommendation, and a bibliography. There's some type of analytical report:market analysisoperation analysisfinancial analysistrend analysis

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in your budget, what allows you to choose where to allocate the additional money by going through the categories and deciding what areas are your greatest priorities?

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When it comes to budgeting, it is important to prioritize where you allocate your additional money. Depending on your individual financial goals, you can decide which areas are the most important.

What is financial goals?

Financial goals are objectives that an individual or organization sets in order to plan and manage their financial resources. These goals can include saving money, paying down debt, and creating an emergency fund. Achieving financial goals also involves developing a budget, creating a savings plan, and investing money. Financial goals should be specific, measurable, attainable, realistic, and timely. Setting short-term and long-term financial goals can help an individual or organization stay on track and reach their financial objectives. It’s important to regularly review and adjust financial goals to make sure they are still appropriate and achievable. Financial goals can help individuals and organizations make the most of their resources and achieve financial success.

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the wto arbitrates trade disputes between its member states. what is one power of particular interest that the wto can use?

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As WTO arbitrates trade disputes between its member states; one power of particular interest that it can use is issuing a ruling instructing a member-state to change trade policies that violate GATT regulations.

How does WTO settle trade disputes between its member states?

The WTO's Dispute Settlement Understanding provides WTO members with a legal framework for resolving trade disputes that arise while implementing WTO agreements.

Ideally, disagreements are settled through negotiation. If this is not possible, WTO members can request the formation of a dispute-resolution panel. The panel will issue a report, which can then be appealed to the WTO's Appellate Body on legal issues.

If a WTO member fails to follow the recommendations of dispute settlement, trade compensation or sanctions, such as increases in customs duties, may be imposed.

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what responsibility does a company have to inform newly hired persons that it wants to shape their values, perceptions, and behavior to conform to the organization's culture?

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Examples of values include the idea that clients should come first, that being honest is the best course of action, or that staff are not allowed to exploit corporate goods or resources for their own interests.

What is honesty?

Honesty is a moral quality that refers to the absence of unethical behaviours like lying, cheating, and stealing as well as the presence of honourable traits and virtues like integrity, truthfulness, and straightforwardness, among others. Other qualities of honesty include being dependable, devoted, fair, and sincere. Honesty is highly valued by many ethnic and religious communities. People could be perceived as being "too honest" if they publicly express others' unfavourable opinions, whether they haven't been asked or if the question has been posed in an unimportant context. One way that this problem is manifested is through political correctness, where people hold back on expressing their true thoughts out of fear that their opinions will be universally rejected by society.

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bruce wants to buy a set of antique bat figurines. he can't afford them now, but believes that in 8 years, they will cost $6,000. he can invest $3,000 into an account today, which he will let sit for the whole 8 years. this account earns 9% interest, compounded monthly. how much will this investment grow to by the end of the 8 years?

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The investment of $3,000 grows at the end of 8 years at rate of interest  9% compounded monthly is equal to $6146.76.

Principal amount 'P' invested by Bruce in the account = $3,000

Time period 't' = 8 years

Rate of interest compounded monthly 'r'= 9%

Amount required to buy antique = $6,000

Let 'A' be the amount after 8 years

Formula of compounded monthly

A = P ( 1 + r/12 )^12t

Substitute the value in the formula we get,

A = $3,000 ( 1 + 0.09 / 12 ) ^(12×8 )

⇒ A = 3,000 ( 1 + 0.0075 )^96

⇒A = 3,000×( 1.0075 )^96

⇒ A = $6146.76

Therefore, the growth of the investment in 8 years as per given rate of interest compounded monthly is equal to $6146.76.

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sam deposited $800 at a 2.4% annual interest, compounded quarterly. in how many years, to the nearest tenth of a year, will he have $1,600 in the account?

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The deposited amount $800 with 2.4% annual interest rate

compounded quarterly become $1,600 in 29 years.

Principal amount deposited 'P' by Sam is equal to $800

Annual rate of interest 'r' compounded quarterly  is equal to 2.4%

Let 'n' be the number of years

Total amount 'A' after 'n' years is equal to $1,600

Amount = Principal amount [ 1 + (rate of interest)/4 ]^ 4n

Substitute the value in the formula we get,

⇒ $1,600 = $800 [ 1  + (2.4 /4×100) ]^4n

⇒ $1,600 / $800 = [ 1 + 0.024/4 ]^4n

⇒2 =  [ 1.006 ]^4n

⇒ n = log2 / 4 log(1.006 )

⇒ n = 28.967

⇒ n = 29 years

Therefore, the number of years required to have $800 to be $1,600 at 2.4% annual interest rate compounded quarterly  is equal to 29 years.

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you have just made your first $5,900 contribution to your retirement account. assume you earn a return of 11 percent per year and make no additional contributions. a. what will your account be worth when you retire in 36 years? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. what if you wait 10 years before contributing?

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(a)Therefore, the account will be worth $115,320.68 when the individual retires in 36 years. (b)if the individual waits 10 years before contributing to the retirement account, the account will be worth $0 when they retire in 36 years.

To calculate the future value of the retirement account after 36 years, we can use the formula:

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

where FV is the future value, PV is the present value (in this case, the initial contribution of $5,900), r is the annual interest rate (11 percent), and n is the number of compounding periods (36 years)

Plugging in the values, we get:

FV = 5,900 x [tex](1 + 0.11)^{36}[/tex]

FV = 5,900 x 19.54074029

FV = 115,320.68

b. If the individual waits 10 years before making the initial contribution, the present value (PV) of the retirement account would be zero. Therefore, we can only calculate the future value (FV) of the retirement account after 26 years (36 years - 10 years).

Using the same formula as above, we get:

FV = 0 x [tex](1 + 0.11)^{26}[/tex]

FV = 0 x 5.59101658

FV = 0

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at a movie theater box office, all tickets are sequentially prenumbered. at the end of each day, the beginning ticket number is subtracted from the ending number to calculate the number of tickets sold. cash is counted and compared with the number of tickets sold. which of the following situations does this control detect? 40) a) some customers presented tickets purchased on a previous day when there wasn't a ticket taker at the theater entrance (so the tickets didn't get torn). b) a group of kids snuck into the theater through a back door when customers left after a show. c) the ticket taker admits his friends without tickets. d) the box office cashier accidentally gives too much change to a customer.

Answers

The control detects, that d. the box office cashier accidentally gives too much change to a customer.

A possible error in the processing of the cash, such as giving a customer too much change, would be indicated by the mismatch between the number of tickets sold and the amount of money collected. This kind of control aids in making sure that all ticket sales are accurately recorded and that the money collected corresponds to the sum that should have been expected given the number of tickets sold.

By recognising the error, the theatre can take the necessary corrective action, such as balancing the cash on hand or further examining the problem to ensure that it is avoided in the future. This kind of control is an illustration of an easy-to-use internal control that promotes accuracy in financial reporting and helps to prevent errors.

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Which theory asserts that countries should simultaneously encourage exports and discourage imports?
(a)free trade
(b)capitalism
(c)new trade
(d)mercantilism
(e)socialism

Answers

The answer is d)Mercantilism

the following transactions are july activities of bill’s extreme bowling, incorporated, which operates several bowling centers. if revenue is to be recognized in july, indicate the amount?

Answers

1. July rent revenue of $2,000 from a new tenant that will lease office space from Bill's Extreme Bowling:

$2,000

What is revenue?

Generally, Revenue is the total income generated from the sale of goods and services, before any expenses are subtracted.

It is also referred to as the "top line" or gross income.

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Money management involves financial activities necessary to manage current personal economic resources, while working for the achievement of long-term financial security.a. Trueb. False

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True, In order to manage one's current financial resources and work toward long-term financial security, one must engage in certain financial activities.

What are financial resources?

A resource would be any material that is accessible in our environment that seems to be financially sustainable, culturally feasible, and technologically accessible and that permits us to satisfy our desires and requirements. The money and some other resources often used to finance an organization's activities and investments are described as financial resources. A company can achieve and utilize its financial resources in a plethora of ways. To put it more simply, financial resources are just the funds that keep a business running.

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Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $43,500. The machine’s useful life is estimated at 10 years, or 385,000 units of product, with a $5,000 salvage value. During its second year, the machine produces 32,500 units of product. Determine the machine’s second-year depreciation using the double-declining-balance method?

Answers

$35,800 is  the machine’s second-year depreciation using the double-declining-balance method .

What does the term "depreciation expense" mean?

When an asset is depreciated for a single period, the cost of the asset reflects how much of its value was used up during that year.

                                           This is known as depreciation expense. A piece of property's accumulated depreciation is the total amount of depreciation expense that has been incurred since the property first came into use.

Depreciation expense per year (Straight line method)

= (Cost - salvage value) / Years

= ($43,500 - $5,000) /10

= $38,500 / 10

= $3,850

Second year depreciation expense = $3,850

Book value at the end of second year = Cost - first year depreciation expense - second year depreciation expense

= $43,500 - $3,850 - $3,850

= $35,800

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which of the following is not an example of an external threat to a company's future profitability? likely entry of potent new competitors lack of a well-known brand name with which to attract new customers and help retain existing customers unfavorable shifts in buyer demographics and tastes costly new regulatory requirements increase(s) in interest rates

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Underutilized is more appropriately referred to as underused. 10% of all the undeveloped areas must be sold. The correct answer is A. The lack of a distinctive competence .

The absence of sufficient usage or utilisation of something Low-income children rarely receive dental care. When talking about services, only use the term "underserved"; do not use it to describe all communities that are poor.

Use the phrase "under-resourced" to more about appropriately describe larger challenges and lucy opportunities Underutilization occurs when employees' unique skills and working hours aren't effectively used to accomplish organisational goals. Therefore, underutilization has a detrimental impact on income. Additionally, it is impossible to accomplish corporate goals without workers working to the best of their abilities.

Complete question:

which of the following is not an example of an external threat to a company's future profitability? likely entry of potent new competitors lack of a well-known brand name with which to attract new customers and help retain existing customers unfavorable shifts in buyer demographics and tastes costly new regulatory requirements increase(s) in interest rates

A. The lack of a distinctive competence

B. The potential of a hostile takeover

C. Adverse changes in foreign exchange rates

D. Unfavorable demographic shifts

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the nonbinding, informal process in which a third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as:

Answers

A third party is selected by the disputing parties to attempt to help them reach a mutually acceptable agreement is known as mediation.

What is agreement?

Agreement is an understanding between two or more parties to do or not do a certain action, or to follow a specific course of action. It involves two or more persons who agree to enter into an arrangement and to abide by the terms of that arrangement. It is usually set out in writing and is legally binding. Agreement typically involves a quid pro quo, or exchange of things of value, such as money, services or goods. Agreement can be used to create a contract and can also be used to settle disputes or disagreements between parties. It is important to ensure that any agreement is clear, specific and covers all relevant aspects; it should also be signed or witnessed by both parties to ensure it is legally valid.

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According to an insurance broker, over $300 billion in damages were caused last year by...
a. fracking b. natural disasters
c. car accidents

Answers

Option c is Correct. Over $300 billion in damages were reportedly caused last year by auto accidents, according to an insurance broker.

Despite the fact that women tend to drive more safely, there remains a clear gender gap in auto safety. According to the IIHS study, women are more frequently hurt or killed in crashes of equivalent severity, even when crashes involving men are more serious.

Teenagers between the ages of 16 and 19 had the highest crash risk of any age group. The fatal crash rate for teen drivers in this age range is nearly three times higher per mile traveled than it is for drivers 20 and older.

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marketing activities often cost 50 percent or more of the selling price of a product or service.true or false

Answers

True. ( Marketing activities often cost more than 50% of the selling price of a product or service.)

How would you define marketing?

Marketing is the set of activities, institutions and processes for creating, communicating, delivering and exchanging offers of value to customers, clients, partners and society at large.

What are the four styles of marketing?

The 4 P's are the "marketing mix" made up of the four main elements used to market your product or service: product, price, location and promotion. Businesses typically consider 4 P's when creating marketing plans and strategies to effectively market to their target audience.

What is a marketing job?

Marketers are responsible for promoting the business and the products and services it sells. Marketing people typically organize and execute both inbound and outbound advertising campaigns to raise brand awareness and employ marketing strategies to persuade consumers to purchase from a company.

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jamie has an adjusted gross income this year of $40,000. he would like to reduce his income taxes. during the year, he plans to contribute property valued at $20,000 to the national federation for the blind, a qualified public charity. which one of the following statements regarding the income tax implications for jaime of a charitable gift is correct? a) if jamie gave some stock, held long term, valued at $20,000 with a basis of $19,800, his only choice would be to limit to an annual deduction of 30% of his agi. b) if jamie gave a collection of first edition books in braille (which the charity would display in its collection), held long term, valued at $20,000 with a basis of $9,000, he could elect to deduct either $20,000 or $9,000. c) if jamie gave an interest in a parcel of commercial real estate, held short term, with a fair market value of $20,000 and a basis of $15,000, he can deduct either the fair market value of the property or his basis in this property. d) if jamie gave a life insurance policy, with a replacement cost of $20,000, on which he has paid net premiums of $5,500, he could deduct either $20,000 or $5,500.

Answers

C) if jamie gave an interest in a parcel of commercial real estate, held short term, with a fair market value of $20,000 and a basis of $15,000, he can deduct either the fair market value of the property or his basis in this property.

What is interest?

Interest is the cost of borrowing money, and is typically expressed as a percentage rate over a period of time. It is calculated as a percentage of the amount borrowed, and is usually charged for the use of borrowed money. Interest is typically paid by the borrower to the lender, and can be calculated on the principal amount borrowed, or on the unpaid balance. Interest rates can vary depending on the type of loan, the term of the loan, and the borrower's credit rating. Interest is one of the primary ways lenders make a profit, as it is a fee charged for the use of their money.

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one reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.. t/f

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This statement is True.For a certain reporting period, the expected cost of manufacturing overhead is applied to cost items using an allocation rate called a predefined overhead rate.

What's the point of employing pre-determined overhead rates?

Manufacturing overhead costs are distributed among jobs based on a predetermined overhead rate. The rate is defined at the beginning of the period so that jobs are costed throughout the duration rather than only at the conclusion.

What factors go into determining the pre-determined overhead rate?

The precalculated manufacturing overhead cost is divided by the activity driver to yield the predefined overhead rate. As an illustration, the accountant should split overhead costs by the estimated number of machine hours when machine hours are the activity driver.

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which of the following is a characteristic of a service economy? multiple choice it is concerned with the indigenous production of food, clothing, and furniture. it is devoted to producing services that make life easier for busy consumers. it is devoted to producing goods and services rather than producing agricultural products. it is significant for the development of factories along the railways to manufacture farm equipment. it is particularly important for enabling farmers to send their surplus crops and goods all over the nation for barter or for sale.

Answers

Option (b), A feature of a service economy is its commitment to creating services that make consumers' lives easier.

What is meant by the phrase "service economy"?

A service economy is an economic system where the main activity is the provision of services rather than the manufacturing of goods. Some examples of these services include building roads, receiving medical care, providing food and accommodation, and other specialized services.

What qualities characterize a service economy?

There are numerous services available, few manufacturers, and the majority of service-based economies are found in first-world countries. The tertiary sector dominates the service-based economy.

Why is the economy so dependent on the marketing of services?

Many people could think they don't even need the service. This is among the factors that make marketing for services so important. Although consumers may not have connected certain services and benefits with a particular company's brand, effective service marketing pinpoints crucial perks that consumers are aware they need or want.

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a businessperson can take some comfort when faced with an ethical dilemma by talking openly about it with management because ethical decisions will always withstand scrutiny. group of answer choices true

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The given statement "a businessperson can take some comfort when faced with an ethical dilemma by talking openly about it with management because ethical decisions will always withstand scrutiny" is false becasue talking openly about an ethical dilemma with management can be helpful in resolving the issue, but it does not guarantee that the ethical decision will always withstand scrutiny.

The outcome of an ethical decision may depend on a number of factors, including the complexity of the issue, the values and principles of the individuals involved, and the broader societal and cultural context. Additionally, ethical decisions can be subject to legal or regulatory oversight, and even if a decision is made in good faith, it may still be subject to challenge or legal repercussions.

Therefore, it is important for individuals to take a comprehensive approach to ethical decision-making, which includes considering the relevant laws, regulations, and codes of conduct, consulting with trusted colleagues and experts, and using ethical frameworks and principles to guide decision-making. By taking a thoughtful and deliberate approach to ethical decision-making, individuals can help ensure that their decisions are well-informed and withstand scrutiny.

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which of the following is a feature of the economic model of corporate social responsibility (csr)? multiple choice corporations are understood to be a particular legal form of property that the owners get to use for their own ends. shareholders are not at the center of a corporation. managers are not employees who must work to further the owners' interests, primarily by maximizing profits. managers have a primary responsibility to pursue profit outside the limitations of the law.

Answers

The feature of the economic model of corporate social responsibility is shareholders are not at the center of a corporation. Thus, option third is correct.

What is Economic Model?

An economic model is a condensed description of reality that produces testable hypotheses about how the economy will behave. An key characteristic of an economic model is that, due to the lack of any objective metrics for economic results, its design must unavoidably be subjective.

Social marketing frequently transforms into acts of social responsibility. The economic model of corporate social responsibility (CSR) has the following characteristics that It asserts that profit is unrelated to the efficient use of resources.

Shareholders are not at the core of a firm, which is a characteristic of the economic model of corporate social responsibility. So, the third choice is the correct one.

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by how much does the current gdp rise in the following scenario? a real estate agent sells a house for $250,000 that the previous owners had purchased 10 years earlier for $90,000. the real estate agent earns a commission of $10,000.

Answers

The sale of the house would not directly impact the GDP, as the GDP measures the total value of all goods and services produced within a country for a given period of time. The $250,000 sale of the house does not represent the production of any goods or services.

What is services produced?

Services produced are goods or activities that help to satisfy consumer needs. They are intangible in nature, meaning they cannot be touched or seen, and are created through the application of knowledge, skills, and resources. Examples of services produced include consulting, financial advice, healthcare, legal services, education, transportation, entertainment, and hospitality. Services provide value to customers by offering convenience, problem-solving, customization, and personalization.

However, the real estate agent's commission of $10,000 would be included in the GDP, as it is income that they earned through the sale of a service (real estate brokerage). Therefore, the GDP would rise by $10,000 in this scenario.

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thomas company has $120,000 of assets, $40,000 of liabilities, $50,000 of stock, and $30,000 of retained earnings. investors own 25,000 shares of thomas' stock that has a current market value of $5.20 per share. based on this the book value per share of the stock is:

Answers

Based on this, the book value per share of the stock is $3.20 per share. Each company has a hierarchy of rights to the three major classes of securities it issues.

$3.20; (50,000 shares + $30,000 retained earnings) ÷ 25,000 shares = $3.20 per share.

Each company has a hierarchy of rights to the three major classes of securities it issues.

Bonds, preferred stock, common stock. In other words, there is a right-wing pecking order.

The priority of each security class can best be understood by looking at what happens when a company goes bankrupt. As a common shareholder with an interest in a company, you may think that if the company goes bankrupt, you will be the first to receive some of the company's assets. In reality, when a company goes into liquidation, common shareholders are at the bottom of the company's food chain. In bankruptcy proceedings, creditors are first liquidated from the assets of the company.

Then there are bondholders, preferred shareholders, and finally common shareholders. This hierarchy is determined by something called "absolute precedence". This is the rule used to determine which portion of the payment goes to which participant in bankruptcy. 

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HOW do stock prices go up? I understand that if more people are buying that stock, the demand is higher, so the share price increases, but who/what controls when the number that shows the price on yahoo changes?

Answers

When a large number of people begin to invest in a particular share, the demand for that share increases, and its prices begin to rise. If a large number of people want to sell a particular stock at the same time, supply will increase and prices will fall.

What causes Stock Prices to change and Increase?

Market forces cause stock prices to fluctuate on a daily basis. This means that share prices fluctuate due to supply and demand. When more people want to buy a stock than sell it (demand), the price rises. If more people wanted to sell a stock than buy it, there would be more supply than demand, causing the price to fall.

Having said that, the main theory is that a stock's price movement indicates what investors believe a company is worth. We should not confuse a company's worth with its stock price. A company's worth is determined by its market capitalization, which is the stock price multiplied by the number of shares outstanding.

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