Particularly suited to forecasting revenue of new ventures

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1. Why is forecasting revenue the logical starting point for preparing a new venture's financial statements?  

2. Why is simulation particularly suited to forecasting revenue of new ventures?  

3. Essex Biochemical Co. has a $1,000 par value bond outstanding that pays 12 percent annual interest. The current yield to maturity on such bonds in the market is 10 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the price of the bonds for the maturity dates

A. 40 Years

B. 25 Years

C. 3 Years

Reference no: EM131889834

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