Answer:
$3,496.80
Explanation:
total predetermined overhead rate = ($465,000 / 75,000 machine hours) + $2.10 per machine hour = $6.20 + $2,10 = $8.30
total costs related to Job 10:
Direct materials $750 Direct labor cost $1,500manufacturing overhead $8.30 x 80 = $664total $2,914markup = (sales price - unit cost) / unit cost
20% = (sales price - $2,914) / $2,914
$582.80 = sales price - $2,914
sales price = $3,496.80
An individual who believes that an action is ethical because others within his or her company and industry regularly engage in the activity is probably a(n)
probably a relativist
Carly Corporation issued $200,000 of 30-year, 8% bonds at 106 on January 1, 2016. Interest is payable semiannually on June 30th and December 31st. The straight-line method of amortization is to be used. After 11 years, what is the carrying value of the bonds?
Answer:
$207,600
Explanation:
The journal entry to record the issuance of the bonds:
January 1, 2016
Dr Cash 212,000
Cr Bonds payable 200,000
Cr Premium on bonds payable 12,000
Premium on bonds payable $12,000 / 60 semiannual coupons = $200 amortization per coupon payment
after 11 years, 22 coupons were paid 22 x $200 = $4,400
bonds carrying value after 11 years = $200,000 + $12,000 - $4,400 = $207,600
Apr. 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. ___?___ Paid the amount due on the note to Locust at the maturity date. ___?___ Paid the amount due on the note to NBR Bank at the maturity date. Nov. 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 8%, $42,000 note payable. Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Prepare journal entries for all the preceding transactions
Answer:
Tyrell Co.
Journal Entries:
April 20:
Debit Inventory $40,250
Credit Accounts Payable (Locust) $40,250
To record purchase of merchandise on credit, terms n/30.
May 19:
Debit Accounts Payable (Locust) $40,250
Credit 10% Notes Payable (Locust) $35,000
Credit Cash Account $5,250
To record the 90-day, 10% Notes Payable and payment of cash.
July 8:
Debit Cash Account $80,000
Credit 9% Notes Payable (NBR Bank) $80,000
To record the signing of a 120 day 9% bank note payable.
August 18:
Debit 10% Notes Payable (Locust) $35,000
Debit Interest Expense $875
Credit Cash Account $35,875
To record payment at maturity.
November 7:
Debit 9% Notes Payable (NBR Bank) $80,000
Debit Interest Expense $2,400
Credit Cash Account $82,400
To record payment at maturity.
Nov 28:
Debit Cash Account $42,000
Credit 8% Notes Payable (Fargo Bank) $42,000
To record the issue of 60-day, 8% note payable.
Dec. 31:
Debit Interest Expense $560
Credit Interest on Notes Payable $560
To accrue interest expense for one month.
Explanation:
Journal entries are used to initially record business transactions of Tyrell Co. as above. They show the two or more accounts involved in each transaction. The accounts that receive values are debited, while the others are credited. This also balances the accounting equation based on each transaction.
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
2. Journalize the entries to record the following:
A. The first semi-annual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method.
B. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.
3. Determine the total interest expense for Year 1.
4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
5. Compute the price of $37,282,062 received for the bonds by using the present value tables.
Answer:
1.Dr Cash 37,282,062
Dr Discount on bonds payable 2,717,938
Cr Bonds payable 40,000,000
2a.Dr Interest expense 1,535,896.90
Cr Cash 1,400,000
Cr Discount on bonds payable 135,896.90
b.Dr Interest expense 1,535,896.90
Cr Cash 1,400,000
Cr Discount on bonds payable 135,896.90
3.$1,535,896.90
4. Yes
5.$37,282,000
Explanation:
1. Preparation of the Journal entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.
Dr Cash 37,282,062
Dr Discount on bonds payable 2,717,938
(40,000,000-37,282,062)
Cr Bonds payable 40,000,000
2. Preparation of the Journal entries to record the following:
a. Journal entry to record the first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount
First coupon payment December 31, Year 1, f
Dr Interest expense 1,535,896.90
(1,400,000+135,896.90)
Cr Cash 1,400,000
Cr Discount on bonds payable 135,896.90
(2,717,938 / 20 coupons = $135,896.90)
b. Journal entry to record the interest payment on June 30, Year 2, and the amortization of the bond discount
June 30, Year 2, second coupon payment
Dr Interest expense 1,535,896.90
Cr Cash 1,400,000
Cr Discount on bonds payable 135,896.90
(2,717,938 / 20 coupons = $135,896.90)
3. Calculation to Determine the total interest expense for Year 1.
Cash 1,400,000 + Discount on bonds payable 135,896.90 = $1,535,896.90
4. Yes the bond proceeds will always be less than the face amount of the bonds in a situation where the contract rate is less than the market rate of interest because if we have a high market rate than the coupon, this would mean that the bonds will sell at a discount
5. Computation for the price of $37,282,062 received for the bonds using the present value tables
PV factor, 4%, 20 periods =0.4564
PV annuity factor, 4%, 20 periods =13.590
Present Value (Face value) = $40,000,000 x 0.4564 = $18,256,000
PV of coupon payments = $1,400,000 x 13.590 = $19,026,000
Therefore the bond's market price will be:
Present Value (Face value) +PV of coupon payments
Bond's market price = $18,256,000 + $19,026,000
b
Bond's market price = $37,282,000
Sheridan Company has the following information available for September 2020. Unit selling price of video game consoles $400 Unit variable costs $320 Total fixed costs $25,600 Units sold 600 Compute the unit contribution margin.
Answer:
Contribution margin per unit= $80
Explanation:
Giving the following information:
Unitary selling price of video game consoles $400
Unit variable costs $320
To calculate the unitary contribution margin, we need to use the following formula:
Contribution margin= selling price - unitary variable cost
Contribution margin= 400 - 320
Contribution margin= $80
The exercise price on one of Chrisardan Companies call options is $20, its exercise value is $27, and its time value is $8. What are the options market value and the price of the stock
im gunna say say invest 15 dollars. i am not sure if thats what it wanted?
Dextra Computing sells merchandise for $17,000 cash on September 30 (cost of merchandise is $11,900). The sales tax law requires Dextra to collect 3% sales tax on every dollar of merchandise sold. Record the entry for the $17,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 3% tax on this sale to the state government on October 15.
Record the cash sales and 3% sales tax.
record the cost of sept. 30th sales.
record the entry that shows the remittance of the 3% tax on this sale to the state government on october 15.
please show the calculations as well.
Answer:
Explanation:
From the given information;
The Journal entries for Dextra Computing Merchandise can be computed as follows:
Date Account title Debit ($) Credit ($)
Sept 30 Sales Revenue 17000
Sept 30 Sales Tax Payable
(3% × 17000)= 0.03× 17000 510
Sept 30 Cash 17510
(To record the cash sales of merchandise)
Sept 30 Cost of goods sold 11900
Sept 30 Merchandise Inventory 11900
(To record the transfer of cost of merchandise
to cost of goods sold)
Oct 15 Sale Tax Payable
(3% × 17000)= 0.03× 17000 510
Cash 510
(To record the remittance of 3%
sales tax to the state government)
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations?
A. Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory.
B. Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory.
C. Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory – Beginning work in process inventory.
D. Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory – Beginning finished goods inventory.
Answer:
B
Explanation:
The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period
A fund earned a net investment income (i.e. Ending Balance Starting Balance + Deposits/Withdrawals)) of 9200 during 1999. The beginning and ending balances of the fund were 100000 and 129200, respectively. A deposit was made at time K during the year. No other deposits or withdraws were made. The fund earned 8% in 1999 using the dollar-weighted method. Determine then date corresponding to time K
(a) April 1 (b) May 1 (c) July 1 (d) Sept. 1 (e) Oct. 1
Answer:________
Answer:
k = April 1 ( A )
Explanation:
Given data :
net investment income : $9200
Beginning balance = $100000
ending balance = $129200
deposit made
no withdrawals
interest earned = 8%
net investment ( $9200) = [ending balance - (starting balance + deposits/withdrawals )]
9200 = 129200 - 100000 - deposits
deposit = 129200 -100000 - 9200 = 20000
8% interest was earned on starting balance
= 8% of $100000 = $8000
interest earned on the deposit made = net income - interest earned on beginning balance = 9200 - 8000 = $1200
using the dollar-weighted method
assuming the deposit was made for Y months
interest earned on deposit = deposit * interest rate * (y/12)
1200 = 20000 * 8% * ( y /12 )
hence ( y/12) = 0.75 hence y = 9 months from December 31
which makes K = April 1
Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2. At December 31 Year 2 Year 1 Common Stock, $5 par value $500,000 $450,000 Paid-in capital in excess of par 948,000 853,000 Retained earnings 688,000 582,000 A. $95,000. B. $201,000. C. $69,000. D. $79,000. E. $50,000.
Answer:
C. $69,000
Explanation:
Computation of the cash paid for dividends during Year 2
First step is to calculate the difference in Retained earnings for Year 2 and Year 1
Retained earnings =$688,000-$582,000
Difference in retained earnings =$106,000
Second step is to calculate for the cash paid for dividends during Year 2
Using this formula
Cash paid dividend = Year 2 Net income- Retained earnings difference
Let plug in the formula
Cash paid dividend=$175,000-$106,000
Cash paid dividend =$69,000
Therefore the cash paid for dividends during Year 2 will be $69,000
Your coworker just finished a formal report for her manager. You notice the report has the title page on top with a staple in the upper left-hand corner. What advice can you give her
Answer:
Enclose the report in a binder made of vinyl or hard paper
Explanation:
Remember, this report isn't some casual document to anyone, but a formal report to a respectable personality–the manager.
Professionally such reports are binded so as to enclose them properly with vinyl or hard paper, instead of simply using a staple. Also, I'll recommend that she places the the title page after the cover before the main contents of the report.
A state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits. Which of the following could result from this legislation?
1. More workers will be hired "informally" and be paid surreptitiously in cash.
2. Wages will decrease.
3. Unemployment will increase.
4. Any of the above could result from the legislation.
Answer: Any of the above could result from the legislation
Explanation:
From the question, we are informed that a state has strict laws stating that all employees, including part-time workers, must be compensated with employer-provided health benefits.
The likely effect of this law is that there will be a reduction on wages as employer's will try as much as possible to reducce cost incurred due to the health related compensation. Also, unemployment will increase and more workers will be hired "informally" and be paid surreptitiously in cash. This is because the cost of the employers will increase and they may need to lay some workers off.
In your opinion, can exchange rate volatility be managed? Why or why not? Explain your answer.
The correct answer to this open question is the following.
What I think about exchange rate volatility is that investors have to learn to manage this volatility because it is part of the stock market on a daily basis. Indeed, it is the nature of the game. Managing foreign exchange or FX, as it is also known, is of the utmost importance in this globalized world of investments. The price of goods and products that are exported such as iron, steel, or any other commodity has been very volatile in recent years, that is why investors and countries have to hire experts to manage their operations. One of the resources that can help investors regarding this issue is to mitigate the uncertainty with futures or currency forwards.
Assume Joe Harry sells his 25 percent interest in Joe's S Corp., Inc., to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc., earned $200,000 from January 1 to January 29 and a total of $1,460,000 from January 1 through December 31 (365 days)?
a. $28,000.
b. $50,000.
c. $112,000.
d. $200,000.
e. None of the above.
Answer:
$29,000
Explanation:
Joe sells 25% of his interest to Joe's S corporation
= 25/100
= 0.25
Therefore using the daily allocation method, the amount of income reported if Joe earns $200,000 from January 1st to January 29th and a total of $1,460,000 for 365 days
= 1,460,000/365 days × 29 days × 0.25
= 4,000×29×0.25
= $29,000
Hence the amount of income reported by Joe Harry is $29,000
Inflation is a general rise in the level of prices experienced by people in a nation.
Answer:
True.
Explanation:
Inflation is an economic term that can be defined as the increase in the prices of a product on the market in a given period.
It can occur due to several factors, when there is an imbalance between supply and demand, then it is correct to say that when the demand for a product is greater than the supply, there will be an increase in prices and, consequently, inflation.
It can also occur when there are situations of monopoly, which is the pricing of a product controlled by a company.
Another factor that causes inflation is the increase in a company's production costs, which can be caused by factors such as scarcity, or economic crisis.
Uncontrolled inflation has a negative impact on the consumer's life, which starts to lose its purchasing capacity and has its quality of life reduced.
Journalize the entry to record the receipt of payment of the note at maturity.
Cash 60,900
Notes Receivable 60,000
Interest Revenue 3,600
Answer:
Journal entry:
Debit Cash Account $63,600
Credit Notes Receivable $60,000
Credit Interest Revenue $3,600
To record the settlement of notes receivable and interest.
Explanation:
On maturity of the note, the customer is expected to settle account by paying for both the Notes and the Interest Due. The customer will pay $63,600 to settle the two accounts. Cash balance will increase to $124,800 from $60,900 by this transaction.
All of the following are items typically included in the job specification EXCEPT ________. educational requirements required compensation physical capabilities personality traits g
Answer:
Required compensation.
Explanation:
Job Specification provides details about the job as well as education, experiences and traits required to perform the job. Job Specification does not however disclose the required compensation as this follows agreement with successful candidates taking into account both the employer and employee circumstances.
The job specification does not provide the compensation.
What is job specification:
It gives the details related to the job also the education, experience are needed for performing the job. Moreover, the job specification provides the type of the job that the employee need to do perform. In additonal to this, it does not disclose the compensation requirement
Therefore, the second option is correct.
learn more about job here: https://brainly.com/question/24332840
During the month of April, direct labor cost totaled $15,000 and direct labor cost was 40% of prime cost. If total manufacturing costs during April were $77,000, the manufacturing overhead was:
Answer:
Manufacturing overhead= $39,500
Explanation:
Giving the following information:
Direct labor= $15,000
Direct labor cost was 40% of prime cost.
Total manufacturing costs= $77,000
First, we need to calculate the prime cost:
Prime cost= direct material + direct labor
Prime cost= 15,000/0.4= 37,500
Now, we can determine the manufacturing overhead:
Manufacturing overhead= total manufacturing costs - prime costs
Manufacturing overhead= 77,000 - 37,500
Manufacturing overhead= $39,500
You need a 30-year, fixed-rate mortgage to buy a new home for $320,000. Your mortgage bank will lend you the money at a 6.15 percent APR for this 360-month loan. However, you can afford monthly payments of only $1,600, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment.
How large will this balloon payment have to be for you to keep your monthly payments at $1,600? Please show and explain all work.
Answer:
$362,353
Explanation:
In order to answer this question I prepared an amortization schedule to determine the remaining principal balance at the end of the 30th year.
The problem with this loan is that the interests charged for the first month only are $1,640. This means that your monthly payment will not even cover the interest expense which means that the principal will grow month after month. After 360 months, your loan balance will increase from $320,000 to $362,353.
The supply of luxury boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats the price is $22 million and 210210 luxury boats a week are bought. Now luxury boats are taxed 10%. What is the new quantity of boats sold and what is the governments tax revenue?
Answer:
New demand = 189 boats
Explanation:
Given:
Total demand = 210 boats
Price = $22 million
Tax increase = 10%
Find:
New demand
Governments tax revenue
Computation:
price increase by 10% so, demand decrease by 10%
New demand = Total demand [100% - 10%]
New demand = 210 [90%]
New demand = 189 boats
Governments tax revenue = 189[($22million + 10%) - $22million]
Governments tax revenue = 189[$24.2 - $22million]
Governments tax revenue = $415.8 million]
Bentley estimates manufacturing overhead of $3,251,600 for 2013 and will apply overhead to units produced based on 739,000 machine hours. During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units. Required: Calculate Bentley’s predetermined overhead rate for 2013. (Round your answer to 2 decimal places.) Calculate Bentley’s cost per unit of production for 2013. (Round your answer to 2 decimal places.)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Estimated overhead= $3,251,600
Estimated machine-hours= 739,000
During 2013, Bentley used $1,640,000 of raw materials, paid $5,335,800 of direct labor, generated 734,000 machine hours, and produced 2,190,000 units.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 3,251,600/739,000
Predetermined manufacturing overhead rate= $4.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 4.4*734,000= $3,229,600
Finally, we can determine the total cost and unitary cost:
Total cost= 1,640,000 + 5,335,800 + 3,229,600= $10,205,400
Unitary cost= 10,205,400/2,190,000= $4.66 per unit
The value of a listed call option on a stock is lower when: I. The exercise price is higher. II. The contract approaches maturity. III. The stock decreases in value. IV. A stock split occurs.
Answer: a. I, II, and III only
Explanation:
The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.
As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.
The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.
A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.
The correct option is a. I, II, and III only
Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.
The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.
The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.
To know more about the listed call option, refer to the link below:
https://brainly.com/question/4490636
Bermuda Triangle Corporation (BTC) currently has 390,000 shares of stock outstanding that sell for $102 per share. Assume no market imperfections or tax effects exist. Determine the share price and new number of shares outstanding if: (Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. BTC has a five-for-three stock split. b. BTC has a 10 percent stock dividend. c. BTC has a 37.0 percent stock dividend. d. BTC has a four-for-seven reverse stock split.
Answer and Explanation:
The computation of each points is shown below:-
a. BTC has a five-for-three stock split is
New price = Old price × Split ratio
= 102 × 3 ÷ 5
= 61.2
New shares outstanding = old shares outstanding ÷ Split ratio
= 390,000 × 5 ÷ 3
= 650,000
b. BTC has a 10 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.1)
= 92.73
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.1)
= 429,000
c. BTC has a 37.0 percent stock dividend is
New price = Old price ÷ (1 + Stock dividend)
= 102 ÷ (1 + 0.37)
= 74.45
New shares outstanding = Old shares outstanding × (1 + Stock dividend)
= 390,000 × (1 + 0.37)
= 534,300
d. BTC has a four-for-seven reverse stock split is
New price = Old price × Split ratio
= 102 × (7 ÷ 4)
= 178.5
New shares outstanding = Old shares outstanding ÷ Split ratio
= 390,000 × (4 ÷ 7)
= 222,857.14
Excellent Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 12 million pages.
For 2018 Excellent Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:
Cost pool Manufacturing overhead costs Activity level
Design changes $ 120,000 300 design changes
Setups 640,000 5,000 setups
Inspections 80,000 8,000 inspections
Total manufacturing overhead costs $840,000
During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:
Activity Money Managers Hospital Systems
Pages 60,000 76,000
Design changes 10 0
Setups 20 10
Inspections 30 38
When costs are assigned using the single cost driver, number of pages printed, then:__________.
A. Money Managers will likely seek to do business with competitors
B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed
C. Excellent Printers will want to retain this highly profitable customer
D. Money Managers is unfairly over billed for its use of printing resources
Answer:
B. Money Managers is grossly under billed for the job, while other jobs will be unfairly over billed
Explanation:
The single overhead rate would be $ 0.07 per page
Overhead Rate = $ 840,000/ 12 million pages = 0.07 per page.
The other rates are
design changes rate = $ 120,000/300= $ 400 per design
Inspections rate = $ 80,000/8000= $ 10 per inspection
Setups rate = $ 640,000/5000= $ 128 per setup
Money managers will be under billed for the job as the overhead rates for other costs are higher than the single overhead rate which is $ 0.07 per page.
And if other overhead rates are used other jobs will be over billed.
Using a single overhead rate for 60,000 pages for Money Managers would mean 60,000 * $ 0.07 = $ 4200
Where as if the same job is billed using other overhead rates it would cost
Money Managers $ 6860 = $ 4000 + $ 2560 + $ 300
Design = $400 * 10 = $ 4000
Setups = $ 128 * 20 = $ 2560
Inspections $ 10 * 30 = $ 300
So it is under billed and other jobs over billed.
The Mahoney Company failed to accrue Rent Revenue on 12/31/23. The error was discovered on 2/1/24, before any cash was collected and after the 2023 books were closed. On 2/1/24, Mahoney would record:
Answer:
Mahoney would record record on the 2023 books A debit to rent receivables
Explanation:
As error of failure to accrue rent revenue on 12/31/2023 was discovered before closing of books, therefore on 02/01/2024 Mahoney would record on the 2023 books "A debit to rent receivables"
Toby purchased a 20-year par value bond with semiannual coupons at a nominal annual rate of 8% convertible semiannually at a price of 1,722.25. The bond can be called at par value 1,100 on any coupon date starting at the end of year 15. What is the minimum yield that Toby could receive, expressed as a nominal annual rate of interest convertible semiannually?
Answer:
3.22%
Explanation:
Here, we are interested in calculating the minimum yield that Toby could receive.
To calculate this, we use the YTM formula.
Before we apply this formula, we write out the parameters which we were given in the question.
Given that number of years, n = 15*2 = 30, Price, P = 1722.25, Face value, F = 1100, C = 0.08/2*1100 = 44
Using YTM approximation formula,
YTM = [C + (F – P)/n]/ (F + P)/2
YTM = [44 + (1100 – 1722.25)/30]/ (1100+1722.25)/2
YTM = 23.2583/1411.125
YTM = 1.61%
YTM = 1.61% x 2 = 3.22%
The graphical probability distribution of ROE for a firm that uses financial leverage would tend to be more peaked than the distribution if the firm used no leverage, other things held constant.
A. True
B. False
Answer: False
Explanation:
The return on equity is used to know how profitable a business is when it's being compared to its equity.
The sentence in the question that the graphical probability distribution of ROE for a firm that uses financial leverage would tend to be more peaked than the distribution if the firm used no leverage, other things held constant is false.
The statement is not true because in such scenario, the graphical probability distribution will be less peaked than the distribution.
What's the answer to this question?
An organization's tangible and intangible resources can be a source of competitive advantage, and these resources play an important role in determining an organization's capabilities and competencies.
A. True
B. False
Answer:
A. True
Explanation:
Tangible resources includes cash, inventory, machinery, land or buildings. they are assets that can be seen
Intangible resources are resources that cannot be seen
for example, a company has developed a resource that increases the amount of output a company produces at a lower cost. this resource would increase the capabilities of the company.
If Tamarisk, Inc. realizes a loss of $9400 on a cash sale of office equipment having a book value of $93600, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
Answer:
The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.
Explanation:
Cash flow from Investing Activities involve the Purchase and or sale of Capital Investments in the business.
The only cash item from Investing Activity for Tamarisk, Inc in the sale of office equipment is the Proceeds or Selling Price that it received in the sale transaction.
Calculation of the Sale Proceeds :
Hint : Open an Office Equipment Disposal T - Account
Office Equipment Disposal T - Account
Debit :
Book Value $93,600
Totals $93,600
Credit :
Profit and Loss $9,400
Proceeds (Balancing figure) $84,200
Totals $93,600
Conclusion :
The total amount reported in the cash flows from investing activities section of the statement of cash flows is $84,200.