on 05-Jan-2019 (Sat)

Materiały elektryczne pod względem przewodnictwa dzielą się na:
• przewodniki - dobrze przewodzą prąd elektryczny,
• półprzewodniki – dobrze przewodzą prąd elektryczny tylko w jednym kierunku, w kierunku przeciwnym posiadają tzw. „kierunek zaporowy” (dot. prądu przemiennego),
• izolatory (dielektryki) – nie przewodzą prądu elektrycznego

With 3 / 10 net 30 The cost of trade credit on the due date will be (1 + (0.03 / 1-0.03)) ^(365 / 30–10) – 1= 0.7434 = 74.3%

Business risk is the uncertainty regarding the operating income of a company. This uncertainty is caused by fixed operating costs of the business. So EBIT indicates operating income and is closely monitored for operating risk analysis.

Financial risk refers to the uncertainty caused by the fixed cost associated with borrowed money.

We have to convert the yields of U.S. treasury and CD into bond equivalent yields. The other is in BEY.

Security 1 = discount on U.S. treasury bill = discount yield * (60 / 360) = 0.383% discount = 100*0.383% = 0.383 market price = 100-0.383 = 99.62 HPY = (100 / 99.62)-1 = 0.381% BEY = (0.381) * (365 / 60) = 2.32%

BEY of Security 2 = (0.65%) × (365 / 30) = 7.91%

BEY of Security 3 = 3.65%

So Security 2 (Bank CD) has the best BEY.

Discount yield is based on the discount calculated using the face value in the denominator. Money market yield and bond equivalent yield are calculated using the holding period yield, which has price (lower value) in the denominator. So the discount yield is lower than all yields when the security is trading at a discount. The money market yield is the holding period yield times 360 / days to maturity and the bond equivalent yield is holding period yield times 365 / days to maturity. So BEY will be higher than the MMY.

If a company increases debt and buys back shares with it, the interest expense associated with using debt represents a fixed cost that reduces net income. However, the lower net income value is spread over a smaller base of equity capital (due to the buyback share repurchases), resulting in an increased ROE.