Finance Calculation Research Paper Example | Topics and Well Written Essays - 1750 words

Finance Calculation - Research Paper Example This is the factor for the argument and criticism of the Millionaires Factory by the Australian Shareholder's Association. If the market required rate of return is higher than the coupon rate of a bond, the price of the bond goes down. Because there are available bonds in the market, which give more interest than it does. Therefore, investors do not feel interest to invest on the bond, which offers lower interest rate than market's other bond. If the market required rate of return is lower than the coupon rate of a bond, the price of the bond goes up. Because there are available bonds in the market, which give lower interest than it does. So, investors feel interest to invest on the bond, which offers higher interest rate than market's other bond. .. Price of bond at 4% market interest = [80{1-1/ (1+ .04) ^5} .04] + 1000 / (1+.04) ^ 5 = $1177.62 Price of bond at 6% market interest = [80{1-1/ (1+ .06) ^5} .06] + 1000 / (1+.06) ^ 5 = $1084.20 Price of bond at 8% market interest = [80{1-1/ (1+ .08) ^5} .08] + 1000 / (1+.08) ^ 5 = $999.99 Price of bond at 10% market interest = [80{1-1/ (1+ .10) ^5} .10] + 1000 / (1+.10) ^ 5 = $684.66 Price of bond at 12% market interest = [80{1-1/ (1+ .12) ^5} .12] + 1000 / (1+.12) ^ 5 = $598.42 Price of bond at 14% market interest = [80{1-1/ (1+ .14) ^5} .14] + 1000 / (1+.14) ^ 5 = $553.20 Price of bond at 16% market interest = [80{1-1/ (1+ .16) ^5} .16] + 1000 / (1+.16) ^ 5 = $479.47 In while, 1 = 16% 2 = 14% 3 = 12% 4 = 10 % 5 = 08% 6 = 06% 7 = 04% 8 = 02%. Relationship between bond value and market required rates of return If the market required rate of return is higher than the coupon rate of a bond, the price of the bond goes down. Because there are available bonds in the market, which give more interest than it does. Therefore, investors do not feel interest to invest on the bond, which offers lower interest rate than market's other bond. If the market required rate of return is lower than the coupon rate of a bond, the price of the bond goes up. Because there are available bonds in the market, which give lower interest than it does. So, investors feel interest to invest on the bond, which offers higher interest rate than market's other bond. Answer to the question no.6 Part 1 We know, P = (D + p) / 1 + k In while, P = Opening share value D = Dividend p = Closing share value k = .12 g ( growth) = (3.5- 3.24) / 3.24 = 8.02% So, D = 3.5 + 3.5 8.02% = 3.78 So now,

Advertising to the other Essay Example | Topics and Well Written Essays - 1000 words

Advertising to the other - Essay Example Fleishman –Hilliard Company concentrated on reaching out to potential customers in Canada, North America and globally. The potential customers mainly comprised environmental groups, oil-retailing companies and all-level institutions and companies that use energy. The objectives of an ad should reflect the intention of the marketing of the product. It is imperative for any advertising firm to consider the objectives of an ad before making any piece of advertisement (Williams, 2012). The Fleishman-Hilliard firm ads campaign sought to achieve different objectives. The primary objective of the ads is to promote the oil sands and Canada’s natural resource sector globally. The campaign ads incorporate this objective by using the ads to raise public awareness about the products made by the Canadian oil sands. The ads also aim at ensuring a fact-based dialogue about Canada being a responsible supplier of oil and other resources. The ad campaign aims at exploring online platform where customers can find information about Canadian oil sands. Finally, the ad campaign aims at portraying Canada as a competent and trustworthy neighbor in terms of industrial partnerships and acting responsibly. Advertising techniques are the ways in which advertising agents use to attract and engage minds of the target market and public. When made to be creative and captivating, they serve as very strong communication tools. Importance and relevance of a particular technique rests on its ability to trigger emotion and attract attention (Williams, 2012). Fleishman-Hilliard Company employed different techniques in its advertising Canadian Oil sands. These techniques included claims, repetition, bandwagon, association, and patriotism. An effective advertisement tends to imply or make claims about the unique capabilities of a particular product. The ads achieve this by concentrating on specific aspects of the