Chhom corporation makes a product whose direct labor standards are 0.6 hours per unit and $35 per hour. In november the company produced 7,700 units using 4,120 direct labor-hours. The actual direct labor cost was $86,520. the labor efficiency variance for november is "-$17,850".
The labor efficiency variance is calculated by the actual hours is minus from the standard hours and into with standard rate.
As follow,
Actual Hours - Standard Hours × Standard Rate
In this case, the actual hours worked were 4,120, and the standard hours should have been 0.6 hours per unit × 7,700 units, or 4,620 hours.
So the labor efficiency variance is:
4,120 actual hours - 4,620 standard hours × $35 standard rate = -$17,850
The negative sign indicates an unfavorable variance, which means that the actual labor hours used were greater than the standard labor hours that should have been used to produce the 7,700 units. This resulted in higher direct labor costs than expected.
Therefore, the labor efficiency variance for November is -$17,850.
To know more about labor efficiency here,
https://brainly.com/question/13810302
#SPJ4
Your stock has a β = 2.77, the expected return on the stock
market is 16.67%, and the yield on T-bills is 6%. What is the
expected return on your stock?
To calculate the expected return on your stock, we can use the following formula: Expected return = risk-free rate + β * (market return - risk-free rate)Plugging in the given values, we get:
Expected return = 6% + 2.77 * (16.67% - 6%)
Expected return = 6% + 2.77 * 10.67%
Expected return = 6% + 29.50%
Expected return = 35.50%
Therefore, the expected return on your stock is 35.50%.The expected return on the stock can be calculated using the Capital Asset Pricing Model (CAPM):Expected return on stock = Risk-free rate + Beta*(Expected market return - Risk-free rate)
Read more about Capital Asset here:https://brainly.com/question/15300072
#SPJ11
a series of payments in the same amount is referred to as multiple choice question. annuity. present value. future value. maturity value.
A series of payments in the same amount is referred to as an a) annuity.
An annuity is a financial product or investment that involves a series of payments made at regular intervals over a period of time. These payments can be made weekly, monthly, quarterly, or annually and are typically of the same amount.
An annuity can be either fixed or variable and can be funded either through a lump sum payment or through a series of payments. An annuity is often used as a means of retirement planning, as it allows individuals to save for the future and receive a steady stream of income in their retirement years.
An annuity can be structured in a number of different ways, depending on the needs and goals of the investor. So a is correct option.
For more questions like Payment click the link below:
https://brainly.com/question/15136793
#SPJ11
t is possible for a business partnership to move to a bonding stage. T/F.
True, it is possible for a business partnership to move to a bonding stage.
This occurs when the partners establish trust and strong relationships, enhancing their collaboration and commitment to the shared goals.
Trust: Trust is the foundation of any healthy business partnership. It is built over time through consistent communication, reliability, and integrity. Trust allows partners to rely on each other, be open and transparent in their dealings, and have confidence in each other's abilities and intentions.
As trust grows, partners become more willing to share information, take risks together, and collaborate on strategic decisions. Trust is a key factor in moving a business partnership to a bonding stage, as it creates a solid foundation for further collaboration and commitment.
Strong relationships: Beyond trust, building strong relationships among business partners involves developing mutual respect, understanding, and shared values.
Partners who are genuinely interested in each other's success and well-being, and who invest time and effort in building a connection, are more likely to move to a bonding stage.
Strong relationships allow partners to communicate openly, address conflicts constructively, and understand each other's perspectives and needs.
It fosters a positive working environment where partners feel comfortable sharing their ideas, opinions, and concerns, leading to more effective collaboration and decision-making.
Collaboration and commitment: In the bonding stage of a business partnership, collaboration and commitment to shared goals are enhanced. Partners work together as a cohesive team, leveraging each other's strengths, skills, and expertise.
They actively support each other in achieving their individual and collective objectives. Partners in a bonding stage are committed to a shared vision, and their sense of accountability and responsibility towards the partnership and its goals is heightened.
They are willing to invest time, effort, and resources to achieve mutual success, and they align their interests and efforts towards common objectives.
To learn more about collaboration, refer below:
https://brainly.com/question/31412149
#SPJ11
Anil currently lives in San Marcos and are considering moving to take a new job in northern California. There are three work periods (years) remaining for Anil. Anil will earn $20,000 per year in each of the three periods (years) in San Marcos and will earn $22,000 in each of the three periods (years) in northern California. Suppose the annual discount rate of 10 percent and other than the earnings, there are no differences between the jobs or preference on where Anil lives. a. Assume there are no costs to moving. Should Anil move to northern California or stay in San Marcos? (Hint: Compare the present value of each alternative). b. Now suppose that Anil would incurs some costs to move. What is the highest cost of moving that Anil is willing to incur and still move to northern California? 2. (4 points) CSUSM offers you an option to pay your remaining balance of $1,800 tuition today or pay $2000 for the tuition balance in one year. The interest rate you can earn (adjusted for inflation) is 15%. What should you do to save the most money? Show you calculation. 3. (5 points) Your pizza restaurant plans to invest $20,000 in a new oven that will generates $4.000 net revenues annually beginning the end year 1 through end of year 5. At the end of year 6, the annual net revenue and sale of the oven brings in $2,000. The interest rate to use in the calculation is 6 percent. What is the net present value of the investment? 4. (4 points) An investment in a company pays a guaranteed annual return in dividends (return) of $200 indefinitely (ie, forever, into perpetuity). Suppose the interest is 5 percent. How much would an investor be willing to pay for this dividend? (Calculate the present value of the investment.)
a. Debt has a lower required rate of return than equity because it is considered less risky. Bondholders receive a fixed payment (interest) and have priority over equity holders in the event of bankruptcy.
In contrast, equity holders have no guaranteed payment and are last in line for assets in case of liquidation, which makes equity riskier and requires a higher rate of return.
b. The Weighted Average Cost of Capital (WACC) for the company is 9.22%. To calculate WACC, we need to take a weighted average of the required rates of return for each component of the capital structure. The weights are determined by the proportion of each component in the capital structure.
The calculation is: WACC = (0.50 x 9.5%) + (0.40 x 7% x (1 - 20%)) + (0.10 x 7.5%) = 9.22%.
The weight of debt is adjusted for the tax shield of interest payments. The tax shield reduces the cost of debt to the company and makes it a cheaper source of financing compared to equity or preferred shares.
For more questions like Capital click the link below:
https://brainly.com/question/29946431
#SPJ11
1. An indenture is:
A. another name for a bond's coupon.
B. the legal agreement between the bond issuer and the bondholders.
C. a bond that is secured by the inventory held by the bond's issuer.
D. a bond that is past its maturity date but has yet to be repaid.
E. the written record of all the holders of a bond issue.
2. Kaiser Industries has bonds on the market making annual coupon payments, with 14 years to maturity, and selling for $1,382.01. At this price, the bonds have a yield to maturity of 5.9 percent. What is the dollar amount of annual coupon?
A. $99.47
B. $59.00
C. $100.39
D. $40.69
E. $99.84
1. An indenture is the legal agreement between the bond issuer and the bondholders. The correct answer is B. 2. The dollar amount of the annual coupon is $99.84. The correct answer is E.
1. An indenture is the legal agreement between the bond issuer and the bondholders, which specifies the terms and conditions of the bond.
2. To calculate the annual coupon payment, we use the present value formula and solve for the coupon payment (C). The formula is:
[tex]PV = C / (1+r)^1+ C / (1+r)^2 + ... + C / (1+r)^n + FV / (1+r)^n[/tex]
where PV is the present value, r is the yield to maturity, n is the number of years to maturity, and FV is the face value of the bond. Rearranging the formula to solve for C, we get:
[tex]C = (PV - FV / (1+r)^n) / ((1+r)^1 + (1+r)^2 + ... + (1+r)^n)[/tex]
Substituting the given values, we get:
C = ($1,382.01 - $1,000 / (1+0.059)¹⁴) / ((1+0.059)¹ + (1+0.059)² + ... + (1+0.059)¹⁴) = $99.84
Therefore, the annual coupon payment is $99.84.
To know more about legal agreement, refer here:
https://brainly.com/question/13707742#
#SPJ11
Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8 percent. The bonds make semiannual payments. If these bonds currently sell for 115 percent of par value, what is the YTM?
The yield to maturity (YTM) on the 15-year bonds issued by Watters Umbrella Corp. can be calculated by using the current market price of the bonds and the coupon rate. Since the bonds make semiannual payments, the coupon rate can be divided by two to get the semiannual coupon payment.
First, we need to calculate the semiannual coupon payment which is 8% / 2 = 4%. Next, we need to find the present value of the semiannual coupon payments and the principal payment using the YTM.
Since the bonds are currently selling at 115% of par value, the price of each bond would be 1.15 x $1,000 = $1,150. We can use this price to calculate the YTM using a financial calculator or Excel's RATE function.
Assuming a face value of $1,000, a coupon rate of 4%, 30 payments (15 years x 2 payments per year), and a present value of -$1,150 (since it's the cash outflow), we get a YTM of approximately 3.5%. Therefore, the YTM for Watters Umbrella Corp.'s 15-year bonds is approximately 3.5%.
To know more about yield to maturity, refer to the link:
https://brainly.com/question/30676637#
#SPJ11
For example, the variance of A's shares is 16% and the variance of B's shares is 25%. If it is known that the portfolio variances of the two stocks are equally weighted by 5.25%, what is the covariance of the two stocks:
a. -10.5%
b. 10.5%
c. 15.8%
d. -15.8%
e. -25.5%
The answer is not one of the choices given in the question.
How to find the covariance of the two stocks?The formula for portfolio variance is as follows:
Portfolio variance =[tex]w1^2 x var(A) + w2^2 x var(B) + 2 x w1 x w2 x Cov(A,B)[/tex]
where w1 and w2 are the weights of stocks A and B respectively and Cov(A,B) is the covariance between stocks A and B.
Given that the portfolio variances of the two stocks are equally weighted by 5.25%, we can set w1 = w2 = 0.525.
Substituting the given values, we get:
[tex]0.0525^2 x 0.16 + 0.0525^2 x 0.25 + 2 x 0.0525 x 0.0525 x Cov(A,B) = 0.0525[/tex]
Simplifying the equation, we get:
0.0084 + 0.0131 + 0.0011 x Cov(A,B) = 0.0525
0.0226 + 0.0011 x Cov(A,B) = 0.0525
0.0011 x Cov(A,B) = 0.0299
Cov(A,B) = 0.0299 / 0.0011 = 27.18%
Therefore, the answer is not one of the choices given in the question.
Learn more about covariance
brainly.com/question/14300312
#SPJ11
how is the tax liblity calculated on income that includes ordinary income and long term caoital gains
The tax liability on income that includes both ordinary income and long-term capital gains is calculated by applying different tax rates to each type of income.
Ordinary income is taxed at the taxpayer's marginal tax rate, which is based on their total taxable income. Long-term capital gains, on the other hand, are taxed at a lower rate than ordinary income. The tax rate for long-term capital gains depends on the taxpayer's tax bracket and the type of asset that generated the gain. For example, for most taxpayers, long-term capital gains from the sale of stocks or mutual funds are taxed at a rate of either 0%, 15%, or 20%.
To calculate the tax liability on income that includes both types of income, the taxpayer must first calculate their total taxable income, including both ordinary income and long-term capital gains. They would then apply the appropriate tax rate to each type of income and add the two amounts together to arrive at their total tax liability.
It's important to note that certain deductions, such as the capital gains tax deduction, may also apply to reduce the taxpayer's tax liability.
You can learn more about tax liability at
https://brainly.com/question/16950901
#SPJ11
how is the opt-in model of informed consent different from opt-out? in which type of model does the consumer retain more control?
In terms of consumer control, the opt-in model gives individuals more control over their personal information and participation in certain activities.
The opt-in model of informed consent requires individuals to actively choose to participate in a certain activity or program. This means that they must explicitly give their consent to participate, usually by checking a box or filling out a form. With opt-in, individuals have the power to make the decision to participate or not, and their consent is obtained before any data is collected or shared.On the other hand, the opt-out model assumes that individuals are automatically enrolled in a program or activity unless they take action to opt-out of it. This typically involves individuals having to actively seek out and fill out an opt-out form or make a phone call to unsubscribe. With opt-out, individuals may not be aware that they are enrolled in a program or activity and have to take action to remove themselves from it.
Learn more about Opt-in and Opt-out- https://brainly.com/question/29994980
#SPJ11
RST Restaurants and RET REIT are two income trusts which both earned the same amount of income in 2020. Which one will pay more in corporate income tax?
A-RST as they are a business trust
B-Neither will be tax as they are both income trusts
C-RET as they are a Real Estate Investment Trust
D-They will both pay the same amount of tax
RST Restaurants and RET REIT are two income trusts which both earned the same amount of income in 2020. The one will pay more in corporate income tax is D-They will both pay the same amount of tax
RST Restaurants and RET REIT are both income trusts, which means they distribute a majority of their income to unitholders. As long as they meet certain requirements and distribute the required percentage of their income, they can avoid paying corporate income tax.
Since both RST Restaurants (a business trust) and RET REIT (a Real Estate Investment Trust) earned the same amount of income in 2020, they will both distribute their income to their unitholders accordingly. Therefore, they will both pay the same amount of corporate income tax, which is likely to be minimal or none, depending on their compliance with the income trust requirements. RST Restaurants and RET REIT are two income trusts which both earned the same amount of income in 2020. The one will pay more in corporate income tax is D-They will both pay the same amount of tax
Learn more about income tax at:
https://brainly.com/question/20127586
#SPJ11
true or false: transformation processes occur in all organizations, regardless of what the organization produces.
True. Regardless of the products they generate, transformation processes happen in all organisations. All organisations engage in transformation, or the conversion of inputs into outputs, in order to accomplish their aims and objectives.
True. Transformation processes occur in all organizations, regardless of what the organization produces. Transformation refers to the conversion of inputs into outputs, and all organizations engage in this process to achieve their goals and objectives. Inputs may include resources such as materials, labor, and capital, while outputs may include products or services. Whether an organization produces goods or services, it must transform inputs into outputs to create value for its stakeholders.
Learn more about Transformation here
https://brainly.com/question/13801312
#SPJ11
The term 'Time inconsistency of optimal policy' refers to:
Select one:
a.
An incentive to deviate from the natural rate of
unemployment.
b.
The setting up of an independent central bank.
c.
An incenti
The term 'Time inconsistency of optimal policy' refers to the tendency of policymakers to deviate from the optimal policy they had originally set due to changing circumstances.
This inconsistency can lead to suboptimal outcomes in the long run. For example, a central bank may promise to keep inflation low, but if unemployment rises, policymakers may be tempted to deviate from this policy to stimulate the economy, which could lead to higher inflation in the future.
To avoid this, policymakers need to consider the long-term consequences of their actions and stick to their original policies as much as possible. The concept of time inconsistency of optimal policy is crucial for understanding the challenges of macroeconomic policy.
To know more about inflation click on below link:
https://brainly.com/question/28190771#
#SPJ11
The common stock of NCP paid 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years.
a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?
b. If your required rate of return is 10.5 %, what is the value of the stock for that investor?
c. Should you make the investment?
Given that your required rate of return is 10.5% and the stock value ($57.024) is higher than the current market price ($23.50), it is clear that the stock is undervalued and would be a wise investment.
We'll be using the Dividend Discount Model (DDM) to solve the problem.
a. To calculate the stock's expected rate of return, we'll use the following formula:
Expected Rate of Return = (Dividend1 / Current Market Price) + Dividend growth rate
First, we need to find Dividend1, which is the dividend for the next year. We have:
Dividend0 = $1.32 (last year's dividend)
Dividend Growth Rate = 8%
Dividend1 = Dividend0 * (1 + Dividend Growth Rate)
Dividend1 = $1.32 * (1 + 0.08)
Dividend1 = $1.4256
Now, we can calculate the expected rate of return:
Expected Rate of Return = ($1.4256 / $23.50) + 0.08
Expected Rate of Return = 0.06066 + 0.08
Expected Rate of Return = 0.14066 or 14.066%
b. To find the value of the stock for an investor with a required rate of return of 10.5%, we'll use the DDM formula:
Stock Value = Dividend1 / (Required Rate of Return - Dividend Growth Rate)
Stock Value = $1.4256 / (0.105 - 0.08)
Stock Value = $1.4256 / 0.025
Stock Value = $57.024
c. To determine if you should make the investment, compare the stock value with the current market price. In this case:
Stock Value = $57.024
Current Market Price = $23.50
Since the stock value ($57.024) is greater than the current market price ($23.50), it indicates that the stock is undervalued, and it would be a good investment based on your required rate of return of 10.5%.
For more such questions on investment, click on:
https://brainly.com/question/29547577
#SPJ11
select all that apply marketers strive for efficient operations to provide their customers with which of the following? (choose every correct answer.) multiple select question. the products they want low-quality merchandise the correct quantity of merchandise products with lower costs than those of competitors'
Marketers strive for efficient operations to provide their customers with a: "the products they want" and c: "the correct quantity of merchandise", while also offering d: "products with lower costs than those of competitors'".
Efficient operations are essential for marketers to meet customer needs by providing the right products in the correct quantities, while also maintaining low costs. This allows businesses to compete with other companies by offering similar products at lower prices, while still making a profit. By streamlining their operations and reducing waste, marketers can optimize their production processes, minimize costs, and improve overall efficiency. Ultimately, these efforts benefit customers by providing them with high-quality products at affordable prices.
Options a, c and d are answers.
You can learn more about Marketers at
https://brainly.com/question/27961157
#SPJ11
Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the project doing in terms of budget? A) Twenty five (25) dollars over budget B) Fifty dollars (50) over budget OC) Twenty five (25) dollars under budget D) Fifty (50) dollars under budget
Using the earned value and actual cost, the cost variance is 25 dollars under budget,
How well is the project doing in terms of budget?To determine how well Sally's project is doing in terms of budget, we need to calculate the cost variance (CV), which is the difference between the earned value (EV) and the actual cost (AC).
CV = EV - AC
CV = 100 - 75
CV = 25
A positive CV indicates that the project is under budget, while a negative CV indicates that the project is over budget. In this case, the CV is positive, so the project is under budget.
Therefore, the correct answer is C) Twenty five (25) dollars under budget.
Learn more on cost variance here;
https://brainly.com/question/14214588
#SPJ1
In many nonindustrial societies, adolescence is considered to be either nonexistent or NON existant or growth leading too Sexual maturityq (true or false)
False. In many nonindustrial societies, adolescence is considered to be a distinct period of life, characterized by physical, cognitive, and social changes, although the concept and experience of adolescence may differ from that of industrial societies.
In many nonindustrial societies, adolescence is seen as a transitional period between childhood and adulthood, marked by physical changes such as growth spurts and the onset of puberty, as well as social and cultural changes such as increased responsibilities, initiation rites, and gender roles.
However, the experience of adolescence may vary greatly across different nonindustrial societies, depending on factors such as cultural values, economic conditions, and religious beliefs. For example, some societies may emphasize the importance of marriage and childbearing for adolescent girls, while others may encourage exploration and experimentation before settling into adult roles.
Overall, while the concept of adolescence may not be universal or static, it remains an important period of development and transition in many nonindustrial societies.
learn more about adolescence here:
https://brainly.com/question/12945498
#SPJ11
the governance mechanism most closely connected with deterring unethical behaviours by holding top management accountable for the corporate culture is a. ownership concentration. b. the market for corporate control. c. executive compensation systems. d. the board of directors.
The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is the board of directors.
The correct option is :- D
The board of directors is responsible for overseeing the company's management and ensuring that it operates in an ethical and responsible manner. This includes setting and enforcing a strong corporate culture, and holding top management accountable for maintaining it.
Executive compensation systems may also play a role in promoting ethical behavior, but they are not directly connected to holding top management accountable for the corporate culture.
Ownership concentration and the market for corporate control are not governance mechanisms that are directly connected to promoting ethical behavior or holding top management accountable for the corporate culture.
To know more about corporate culture refer here:-
https://brainly.com/question/30975548#
#SPJ11
you are a project manager of a technical team. which approach would you take to help the team members balance their perfectionism and creativity so they are within scope?
As a project manager of a technical team, it is crucial to help your team balance their perfectionism and creativity by providing clear expectations, feedback, and resources. This approach will enable them to complete their work efficiently while ensuring that it is within scope.
Firstly, I would encourage the team members to understand the project's scope, timelines and deliverables so they can manage their time and efforts more effectively.
It is crucial to establish clear expectations regarding what is expected in terms of quality, functionality and deadlines. This clarity will help the team members to prioritize their tasks and keep them focused.
Secondly, I would encourage the team members to be open to feedback, critiques, and suggestions from their colleagues. This collaborative approach can enhance their creativity and give them a chance to work on their perfectionism by refining their work according to the team's feedback.
Finally, I would ensure that the team has access to relevant tools, resources and training to help them complete their work within the scope. This will help them to create a balance between their perfectionism and creativity while meeting the project's objectives.
In conclusion, as a project manager, it is crucial to help your team balance their perfectionism and creativity by providing clear expectations, feedback and resources. This approach will enable them to complete their work efficiently while ensuring that it is within scope.
To know more about project managers refer here:
https://brainly.com/question/29767461#
#SPJ11
magazine publishing is the most stable of all mass media business. true or false
The statement: magazine publishing is the most stable of all mass media businesses is FALSE.
While magazine publishing may have been considered a stable industry in the past, it has faced significant challenges in recent years due to the rise of digital media and changing consumer habits.
Many magazines have experienced declines in circulation and advertising revenue, and some have even ceased publication altogether. The COVID-19 pandemic has further exacerbated these challenges as advertisers cut back on spending and consumers turn to digital sources for information and entertainment.
However, it's worth noting that some magazines have been able to adapt and thrive in the digital age by developing strong online presences and engaging with audiences through social media and other platforms.
To know more about magazine publishing, refer here:
https://brainly.com/question/31365606#
#SPJ11
1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.)
The correct response is that cash flows will not be affected by the depreciation charge. Deterioration costs are recorded utilizing the income explanation's aberrant methodology, not its immediate strategy.
How is income influenced?Since operating cash flow begins with net income, any changes in net income would affect cash flow from operating activities. If costs rise or sales decrease, operational operations will experience a decrease in cash flow, resulting in a decrease in net income.
There is a cash flow problem when the amount of money going out of the company exceeds the amount coming in. As a result, you won't have enough money to pay your bills, pay back loans, pay your suppliers, or run your business profitably.
A company can improve cash flow by using high-interest savings accounts, increasing inventory, checking consumer credit, offering incentives for early payments, leasing rather than purchasing, and so on.
Learn more about cash flow:
brainly.com/question/30736595
#SPJ1
if an excise tax is imposed on beer and collected from the producers, the ________ curve will shift ________ by the amount of the tax.
If an excise tax is imposed on beer and collected from the producers, the supply curve will shift left by the amount of the tax.
An excise tax is a tax on a specific good, such as beer, that is usually collected from the producers of that good. When an excise tax is imposed, the producers of the good must pay the tax, which increases their costs of production.
As a result, they are less willing to produce the good at any given price, and the supply of the good decreases.
To see how the excise tax affects the supply curve, we can look at the following steps:
1. Draw the initial supply and demand curves for beer without the tax. The point where the supply and demand curves intersect is the equilibrium point, which determines the market price and quantity of beer.
2. Draw a horizontal line representing the amount of the excise tax imposed on beer. This line shows the additional cost per unit that the producers must pay to the government.
3. Shift the supply curve left by the amount of the tax. The shift in the supply curve represents the decrease in supply that results from the producers having to pay the tax.
The new equilibrium point will be at a higher price and lower quantity than the original equilibrium point.
Overall, the imposition of the excise tax reduces the supply of beer and increases the price that consumers must pay.
The shift in the supply curve reflects the increased cost of production for the producers, and the higher price reflects the increased cost passed on to the consumers.
To know more about excise tax refer here
brainly.com/question/22358769#
#SPJ11
A bond matures in 9 years and pays a 4 percent annual coupon. The bond has a face value of $1,000 and currently sells for $979. What is the bond’s current yield?
4.09%
97.50%
4.35%
5.21%
The same facts as in #2 above, what is the yield to maturity on the bond?
4.75%
8.12%
5.51%
4.29%
We need to divide the annual coupon payment by the current market price of the bond, and then multiply by 100 to get a percentage. Therefore, the bond’s yield to maturity is approximately 4.29%.
Current yield = (Annual coupon payment / Current market price) x 100%
The annual coupon payment is 4% of the face value, or $40 per year. The current market price is $979. Plugging these numbers into the formula, we get:
Current yield = ($40 / $979) x 100% ≈ 4.09%
Therefore, the bond’s current yield is approximately 4.09%.
To calculate the bond’s yield to maturity, we need to solve for the interest rate that makes the present value of the bond’s future cash flows equal to the current market price. We can use a financial calculator or spreadsheet software to do this, but we will show the steps using the formula:
PV = C / (1 + r)^1 + C / (1 + r)^2 + ... + C / (1 + r)^n + F / (1 + r)^n
Where PV is the current market price, C is the annual coupon payment, r is the yield to maturity (the interest rate we are solving for), n is the number of years to maturity, and F is the face value of the bond.
Plugging in the given values, we get:
$979 = $40 / (1 + r)^1 + $40 / (1 + r)^2 + ... + $40 / (1 + r)^9 + $1,000 / (1 + r)^9
We can use a trial-and-error method or a numerical solver to find that the yield to maturity is approximately 4.29%.
Therefore, the bond’s yield to maturity is approximately 4.29%.
To know more about yield to maturity refer here:
https://brainly.com/question/31531823#
#SPJ11
Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month LIBOR + .150 percent or at three-month LIBOR + .150 percent. Given its asset structure, three-month LIBOR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 1.150 percent or at three-month LIBOR + 1.00 percent. Given its asset structure, six-month LIBOR is the preferred index. Assume a notional principal of $15,000,000. What is the quality spread differential (QSD)?
a 0.125 percent
b 0.375 percent
c 0.150 percent
d 0.625 percent
The quality spread differential (QSD) is 0.375 percent. The answer is b.
The QSD is the difference in credit spread between two fixed-income securities with similar characteristics, but different credit ratings.
In this case, the QSD is calculated as the difference between the spread of Company A's FRNs (three-month LIBOR + 0.150 percent) and the spread of Company B's FRNs (six-month LIBOR + 1.150 percent), which is 1.0 percent.
However, since the preferred index for Company A is three-month LIBOR and for Company B is six-month LIBOR, we must adjust for the difference in index tenors.
Assuming a linear relationship between the two indices, the adjustment is 0.625 percent (1.0 percent spread difference divided by the two-year difference between the indices).
Thus, the QSD is 0.150 percent (0.625 percent minus 0.475 percent), which is the difference in credit spread after adjusting for the difference in index tenors.
To know more about credit spread, refer here:
https://brainly.com/question/30545974#
#SPJ11
what is the comparable pre-tax yield on a municipal bond yielding 5.2% assuming a marginal tax bracket of 15%?
The investor would need to earn a pre-tax yield of 6.12% on a taxable investment to receive the same after-tax return as the municipal bond yielding 5.2%.The comparable pre-tax yield is an important metric to consider when evaluating the after-tax returns of tax-exempt investments like municipal bonds.
The comparable pre-tax yield on a municipal bond is the yield an investor would need to earn on a taxable investment to receive the same after-tax return as the tax-exempt municipal bond. To calculate this, we can use the following formula:
Comparable Pre-tax Yield = Tax-exempt Yield / (1 - Marginal Tax Rate)
In this case, the municipal bond is yielding 5.2%, and the investor's marginal tax bracket is 15%. So, we can calculate the comparable pre-tax yield as follows:
Comparable Pre-tax Yield = 5.2% / (1 - 0.15) = 6.12%
Therefore, the investor would need to earn a pre-tax yield of 6.12% on a taxable investment to receive the same after-tax return as the municipal bond yielding 5.2%.
Click the below link, to learn more about tax bracket :
https://brainly.com/question/21130963
#SPJ11
a physical inventory taken on december 31, 2020, resulted in an ending inventory of $1,050,000. jep's markup on cost has remained constant at 32% in recent years. jep suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. at december 31, 2020, what is the estimated cost of missing inventory?
The estimated cost of missing inventory is $538,235.30. However, it's important to note that this is just an estimate and further investigation would be necessary to determine the actual cost of missing inventory.
To calculate the estimated cost of missing inventory, we need to use the retail inventory method. The retail inventory method is a way to estimate the cost of inventory by using the ratio of the cost of goods available for sale to the retail price of goods available for sale.
First, we need to determine the cost of goods available for sale. We know the ending inventory at cost is $1,050,000, but we don't have information on the cost of goods sold. However, we can use the retail inventory method to estimate the cost of goods sold.
Let's assume that the total cost of goods available for sale is $3,000,000 (this includes the ending inventory at cost plus the cost of goods sold). We also know that Jep's markup on cost is 32%, which means that the cost of goods is 68% of the selling price.
Using this information, we can calculate the total selling price of goods available for sale as follows:
Selling price = Cost / (1 - Markup on cost)
Selling price = $3,000,000 / (1 - 0.32)
Selling price = $4,411,765.96
Next, we need to calculate the cost of goods sold:
Cost of goods sold = Selling price x (1 - Gross margin ratio)
Cost of goods sold = $4,411,765.96 x (1 - 0.68)
Cost of goods sold = $1,411,764.70
Now we can calculate the estimated cost of missing inventory:
Estimated cost of missing inventory = Cost of goods available for sale - Ending inventory at cost - Cost of goods sold
Estimated cost of missing inventory = $3,000,000 - $1,050,000 - $1,411,764.70
Estimated cost of missing inventory = $538,235.30
Click the below link, to learn more about Inventory:
https://brainly.com/question/14184995
#SPJ11
actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except: group of answer choices hiring and training groups that have been underrepresented recruiting from groups the employer hasn't previously made an attempt to recruit from mentoring, management training, and other development hiring individuals from underrepresented groups, even if not fully qualified
The actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except hiring individuals from underrepresented groups, even if not fully qualified.
The other options, such as hiring and training groups that have been underrepresented, recruiting from groups the employer hasn't previously made an attempt to recruit from, and providing mentoring, management training, and other development, are all positive steps toward promoting workplace diversity and inclusion.
However, hiring individuals who are not fully qualified for a position could potentially undermine the objective of achieving a diverse and inclusive workplace, as it might result in lowered performance or negative perceptions from other employees. Instead, focusing on hiring qualified candidates and providing opportunities for growth and development can create a more equitable and inclusive environment for all employees.
To know more about workplace click here
https://brainly.com/question/31281236
#SPJ11
v
A $100,000, 8% bond with interest payable semi-annually is redeemable in 6 years. What is the purchase price to yield 9% compounded semi-annually? Select one: O a. $96,470.91 O b. $98,704.19 O c. $95,
The purchase price of the bond to yield 9% compounded semi-annually is $96,470.91. Option A is answer.
To calculate the purchase price of the bond, we need to use the present value formula for a bond:
PV = (C / r) x [1 - (1 / (1 + r)^n)] + (F / (1 + r)^n)
Where:
PV = Present value of the bond
C = Interest payment (coupon) per period
r = Required rate of return (yield)
n = Number of periods
F = Face value of the bond
We know that:
The face value (F) of the bond is $100,000.
The interest rate (coupon rate) is 8% per year, or 4% per semi-annual period.
The bond is redeemable in 6 years, or 12 semi-annual periods.
The required rate of return (yield) is 9% compounded semi-annually.
Using these values in the formula, we get:
PV = (4,000 / 0.045) x [1 - (1 / (1 + 0.045)^12)] + (100,000 / (1 + 0.045)^12)
PV = $96,470.91
Therefore, the purchase price of the bond to yield 9% compounded semi-annually is A: $96,470.91.
You can learn more about bond at
https://brainly.com/question/29794367
#SPJ11
1. Next year’s expected firm earnings are $8,000, shares outstanding 2000, ROE=16% required rate of return k= 9%, your plowback ratio b=17% and assuming constant growth dividends. Calculate the PVGO
Please use 5 decimal places in your response
2. Next year’s expected firm earnings are $6,000, shares outstanding 1000, ROE=13% required rate of return k= 10%, your plowback ratio b=20% and assuming constant growth dividends. Calculate todays price P0
Please use 4 decimal places in your response
1. To calculate the PVGO with given values, first, find the dividend payout ratio (1 - b) which is 1 - 0.17 = 0.83. Next, calculate the earnings per share (EPS) by dividing the expected firm earnings by the number of shares outstanding, which is $8,000 / 2,000 = $4.
Then, determine the dividend per share (DPS) by multiplying EPS by the dividend payout ratio, which is $4 * 0.83 = $3.32. Now, calculate the growth rate (g) by multiplying the plow back ratio by the ROE, which is 0.17 * 0.16 = 0.0272.
Finally, calculate the PVGO using the formula PVGO = (DPS / (kg)) - (EPS / k), which is ($3.32 / (0.09 - 0.0272)) - ($4 / 0.09) = 48.50617 - 44.44444 = 4.06173.
2. To calculate today's price P0, follow similar steps as in the first calculation. Find the EPS, which is $6,000 / 1,000 = $6.
Calculate the DPS using the payout ratio (1 - b) = 1 - 0.20 = 0.80, resulting in a DPS of $6 * 0.80 = $4.80. Calculate the growth rate (g) as 0.20 * 0.13 = 0.026. Lastly, use the Gordon growth model to find P0: P0 = DPS / (kg), which is $4.80 / (0.10 - 0.026) = $64.0000.
To know more about earnings per share (EPS) refer here:
https://brainly.com/question/28580496#
#SPJ11
product mix breadth. corporate stakeholder relations. profitability. brand liability. perceived brand personality.
Product mix breadth: Product mix breadth refers to the number of product lines or categories offered by a company.
A company with a wide product mix breadth offers a diverse range of products, while a company with a narrow product mix breadth offers a limited range of products. The product mix breadth can affect a company's profitability, as a wider product mix breadth may attract a larger customer base, but may also increase the complexity of operations and distribution.
1.Corporate stakeholder relations: Corporate stakeholder relations refer to the interactions and relationships that a company has with its various stakeholders, including customers, employees, investors, suppliers, and the wider community. Good stakeholder relations can help a company build trust and loyalty among its stakeholders, and can also contribute to the company's reputation and long-term success.
2.Profitability: Profitability refers to a company's ability to generate profits, which is essential for its survival and growth. A company's profitability is influenced by a variety of factors, including its pricing strategy, cost structure, market demand, competition, and overall efficiency and productivity.
3.Brand liability: Brand liability refers to the potential legal and financial risks associated with a company's brand, including issues such as trademark infringement, product liability, and false advertising claims. A company with strong brand liability management practices can minimize these risks and protect its reputation and financial stability.
4.Perceived brand personality: Perceived brand personality refers to the traits, characteristics, and values that customers associate with a company's brand. These perceptions can be shaped by a variety of factors, including advertising, product design, customer service, and social responsibility. A strong and positive brand personality can help a company differentiate itself from competitors, build customer loyalty, and ultimately drive sales and profitability.
Learn more about employees here:
https://brainly.com/question/21847040
#SPJ11
which of the following are steps that organizations can take to evolve the organization from boundaries to rewards and culture? (check all that apply.) multiple select question. make sure that managers micromanage employees so that mistakes are caught early. make training an important part of the organization. develop a reward system that is clearly aligned with organizational goals. hire the right people.
The means that associations can take to develop from limits to prizes and culture are make training an important part of the organization, develop a reward system that is clearly aligned with organizational goals, and hire the right people. Hence, options (B), (C) and (D) are correct.
By putting resources into representative preparation and improvement, associations can upgrade their workers' abilities and capabilities, prompting further developed execution and a more grounded hierarchical culture.
Laying out a distinct prize and acknowledgment framework that lines up with the association's targets rouses workers to accomplish these objectives. It cultivates a positive culture that advances superior execution and commitment.
By recruiting the ideal individuals, associations can construct a strong and cooperative labor force that adds to a positive workplace and in general achievement.
Therefore, options (B), (C) and (D) are correct.
Learn more about organizational goals, from:
brainly.com/question/33574110
#SPJ12