Sarah just used $96.21 purchased a Treasury bond. Assume that the yield rate for this bond is j₂ =4.74% p.a. and the duration of this bond is 2.9 years. Without actually calculating the new price for this bond, use the bond price and the duration value to estimate (use the price sensitivity formula) the change in price of this bond that would result from an increase in yield rate (j₂) of 18 basis points. Round your answer to four decimal places.

a. -0.2453

b. -0.4906

c. -0.2397

d. -0.4795

At the end of 2005, the Long Life Light Bulb Company announced it had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating expenses and $125,000 in interest expenses. The company is subject to a 30% tax rate and has declared $57,000 total preferred stock dividends. Evaluate the importance of retained earnings for Long life bulb company Appraise the increased retained earnings for 2005 if the company were to declare a $4.25 common stock dividend. The company has 15,000 shares of common stock outstanding. (1 MARK) a. $50,000, The statement of retained earnings is important for company as it allows the firm to determine its debt ratio O b. $250,250, The statement of retained earnings is important for company as it allows the firm to determine its retention ratio. O c. $100,000, The statement of retained earnings is important for company as it allows the firm to determine its profitability ratio