Explain Three Variables a Firm Should Consider When Analyzing Potential

question 133

Essay

Explain three variables a firm should consider when analyzing potential threats posed by competitors.

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Definitions:

Coupon Bond

A debt security that pays the investor periodic interest payments called coupons and returns the principal at the end of the maturity.

Par Value

Par Value is the face value of a bond or stock as stated by the issuer, which might not reflect its market value.

Yield To Maturity

The total return expected on a bond if held till its maturity date, including both interest payments and capital gains or losses.