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Please give explanation to these 8.Which one of the following is a working capital management decision? Answers: Should a new machine be purchased this year?

Please give explanation to these

8.Which one of the following is a working capital management decision?

Answers:

Should a new machine be purchased this year?

image text in transcribed

Should the accounts payables level be decreased?

Should debt or equity financing be used to purchase a building?

Should 10 or 15-year bonds be issued?

29.

Other things held constant, for a given change in the market interest rate, the _______the time to maturity of bond, the ____ the change in the bond price.

Correct answer:

shorter; smaller.

33.

A store is offering a diamond ring for sale for 24 months at $100 per month. The retail price of the ring is $2,800. What is the interest rate on this offer?

Correct answer:

14.38%

34.

Whats the value of a 30-year, $1,000 par value, 6% coupon rate bond if the yield to maturity (YTM) is 6%?

Correct answer:

$1,000

45

A company is expected to pay their first annual dividend at the end of this year. That payment will be $0.50 a share. The company will increase the dividend by 4% per year in the future. The required return is 12%. What is the estimated value of this stock today?

Correct answer:

$6.25

49

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