Pentos International (PI) is in the heavy equipment industry. The debt rating for PI is AA, and the yield spread on AA-rated bonds for five-year maturity is 3% per year. The yield on a five-year treasury is 4% per year. The company recently announced that it would issue convertible bonds. The bonds will have no coupons and will have a maturity of five years and will pay $1000 at the end of five years. The bond can be converted to 20 shares of PI stock at the end of two years. The price of PI stock is $35. A call option on PI stock with an exercise price of $50 and maturity of five years is priced at $18. What is the fair value of the bond? Use simple compounding and ignore any dilution effects. Hint: Convertible bond price = (bond Price without options) + (Convertible Option)

Abc company currently pays a dividend of $2.15 per share, d0=2.15. it is estimated that the company’s dividend will grow at a rate of 30 percent per year for the next 3 years, then the dividend will grow at a constant rate of 7 percent thereafter. the market rate of return is 9 percent. what would you estimate is the stock’s current price?

John novosel was employed by nationwide insurance company for fifteen years. novosel had been a model employee and, at the time of discharge, was a district claims manager and a candidate for the position of division claims manager. during novosel's fifteenth year of employment, nationwide circulated a memorandum requesting the participation of all employees in an effort to lobby the pennsylvania state legislature for the passage of a certain bill before the body. novosel, who had privately indicated his disagreement with nationwide's political views, refused to lend his support to the lobby, and his employment with nationwide was terminated. novosel brought two separate claims against nationwide, arguing, first, that his discharge for refusing to lobby the state legislature on behalf of nationwide constituted the tort of wrongful discharge in that it was arbitrary, malicious, and contrary to public policy. novosel also contended that nationwide breached an implied contract guaranteeing continued employment so long as his job performance was satisfactory. what decision as to each claim?

Witch is an example of a non durable good?