Answers
Answer:
10.00
Explanation:
We haven = 3
Pv = 1000
Rate if interest = 6%
Coupon = 5% x 1000
= 50
∆y = assumed to be 1%
The formula for convexity =
(V- + V+)-2Vo/Vo+(∆y)²
We first solve for Vo
Using the financial calculator
Vo = 973.26
Then we solve for V-
Pv = 1000
Pmt = 50
I = 5%
n = 3
V- = 1000
We solve for V+
I = 7%
Pmt = 50
N = 3
V+ = 947.51
Then the convexity is gotten by putting these values into the formula
= (1000+947.51)-2x973.26/973.26x(1%)²this is approximately
10
Please check attachment for more details
Related Questions
On February 1, 2017, Pat Weaver Inc. (PWI) issued 9%, $1,500,000 bonds for $1,800,000. PWI retired all of these bonds on January 1, 2018, at 105. Unamortized bond premium on that date was $157,500. How much gain or loss should be recognized on this bond retirement
Answers
Answer:
the gain on retirement bond is $100,000
Explanation:
The computation of the gain or loss recognized on the bond retirement is shown below;
= Book value - paid at redemption
= ($1,500,000 + $157,500) - ($1,500,000 × 105%)
= ($1,657,500) - ($1,575,000)
= $100,000
hence, the gain on retirement bond is $100,000
The same is to be considered and relevant too
All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Moon Appliance has no alternative use for its manufacturing facilities. Nadal Parts Company has offered to sell 9,000 units of Part B89 to Moon Appliance for $20.00 per unit. What should Moon Appliance do
Answers
Answer:
The correct option is a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Moon Appliance manufactures a variety of appliances which all use Part B89. Currently, Moon Appliance manufactures Part B89 itself. It has been producing 9,000 units of Part B89 annually. The annual costs of producing Part B89 at the level of 9,000 units include:
Direct materials = $3.00
Direct labor = $8.00
Variable manufacturing overhead = $4.00
Fixed manufacturing overhead = $3.00
Total cost = $18.00
All of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier. Assume Moon Appliance can purchase 9,000 units of the part from the Nadal Parts Company for $20.00 each, and the facilities currently used to make the part could be used to manufacture 7,000 units of another product that would have a $6 per unit contribution margin. If no additional fixed costs would be incurred, what should Moon Appliance do?
Select one:
a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
b. Make the new product and buy the part to earn an extra $4.00 per unit contribution to profit.
c. Continue to make the part to earn an extra $3.00 per unit contribution to profit.
d. Continue to make the part to earn an extra $8.00 per unit contribution to profit.
The explanation of the answer is now given as follows:
Since all of the fixed manufacturing overhead costs would continue whether Part B89 is made internally or purchased from an outside supplier, it implies that the fixed manufacturing overhead costs will not be considered in taking the decision.
We therefore proceed as follows:
Amount saved and generated per unit by outsourcing = Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit + Per unit contribution margin from another product = $3 + $8 + $4 + $6 = $21
Price to buy from Supplier = $20
Extra per unit contribution to profit = Amount saved and generated per unit by outsourcing – Price to buy from Supplier = $21 - $20 = $1
Therefore, the correct option is a. Make the new product and buy the part to earn an extra $1.00 per unit contribution to profit.
On January 1, 2021, Reston Company purchased 25% of Ace Corporation's common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston's investment account was $1,170,000 at December 31, 2021. Ace reported net income of $700,000 for the year ended December 31, 2021, and paid cash dividends on common stock totaling $280,000 during 2021. How much did Reston pay for its 25% interest in Ace
Answers
Answer:
initial investment in Ace Corporation = $1,065,000
Explanation:
initial investment in Ace Corporation = December 31st balance - (25% x net income reported) + (25% x distributed dividends)
initial investment in Ace Corporation = $1,170,000 - (25% x $700,000) + (25% x $280,000) = $1,170,000 - $175,000 + $70,000 = $1,065,000
When using the equity, reported net income increases the investment account while dividends decrease it.
Uncollectible accounts are determined by the percent-of-sales method to be % of credit sales. How much is uncollectible-account expense for ?
Answers
Answer:
$1,160
Explanation:
Hie, I have attached the full question as an image below.
The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.
An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.
For this question, we are told that Uncollectible accounts are determined by the percent-of-sales method to be 4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :
Credit Sales - 2012 = $44,000
Beginning Balance in allowances = $600
Therefore,
Uncollectable Amount (2012) = Credit Sales x percent-of-sales
= $44,000 x 4%
= $1,760
The Uncollectable amount has increased by $1,160 ($1,760 - $600)
Conclusion :
The collectible-account expense for 2012 is $1,160
every march, evan who owns and operates a small retail shop takes a large box of recipets and invoices to his accountant so the accountant can file evans taxes in april. only then does evan know if his business has been profitable evan could benefit from an
Answers
Answer:
Management information system
Explanation:
MANAGEMENT INFORMATION SYSTEM is vital and Paramount for any business, company or organization because it enables them to know whether their business is profitable or not.
Secondly with MANAGEMENT INFORMATION SYSTEM a company can easily gather information that are relevant or important which will help them during decision making process.
Lastly with MANAGEMENT INFORMATION SYSTEM information can easily be presented in a such a way that the user of such information will have a good understanding of it Just as in the case of Evan.
Therefore based on the information given about Evan, Evan could benefit from MANAGEMENT INFORMATION SYSTEM.
By Nike changing the technology in their shoe, they are taking on a role of being more socially responsible. What type of business practice is Nike partaking in as they incorporate doing well by doing good into their business model
Answers
Explanation:
In this case, Nike is incorporating corporate governance into its business model, which is defined as a model for managing companies using the best market practices, using transparency, equity and social and environmental responsibility as essential parameters.
Companies today are no longer perceived by society as merely profitable entities, it is a social demand that companies assist in the development of society and minimize their impacts on the environment.
When companies develop programs to support society and sustainability, it guarantees the advantages of being better positioned in the market, attracting more investors, adding more value to its products and services and gaining a strategic and competitive advantage in the market.
Find the principal P that must be invested at rate r, compounded monthly, so that $1,000,000 will be available for retirement in t years. (Round your answer to the nearest cent.)r
Answers
Answer:
$224,174
Explanation:
Note : I have uploaded the full question below :
The Principle P that is required can be calculated from the given data though discounting future cash flows as follows :
FV = $1,000,000
r = 7½%
t = 20 × 12 = 240
P/yr = 12
Pmt = $0
PV = ?
Using a Financial Calculator to input the values as shown above, the PV would be $224,174 . Thus, the principal P that must be invested must be $224,174.
Nebraska Inc. issues 4,100 shares of common stock for $131,200. The stock has a stated value of $15 per share. The journal entry to record the stock issuance would include a credit to Common Stock for
Answers
Answer:
$61,500
Explanation:
Based on the information given if the company
issues 4,100 shares of common stock for the amount of $131,200 in which the stock has a stated value of $15 per share which means that The journal entry to record the stock issuance would include a credit to Common Stock for $61,500 Calculated as:
Credit to Common Stock=4,100 shares*$15 per share
Credit to Common Stock=$61,500
If the owner contributes $19,400 and net income is $15,900, how much did the owner withdraw (owner, withdrawals)
Answers
Answer:
The owner withdrew $8,300
Explanation:
As per given Data
_______________ Assets ____Liabilities
Beginning of Year: $25,000 ___$17,000
End of Year: _____$62,000 ___$27,000
First, we need to the Beginning and Ending Equity value using following formula
Equity = Assets - Liabilities
Beginning Equity = Beginning Assets - Beginning Liabilities
placing values in the formula
Beginning Equity = $25,000 - $17,000 = $8,000
Ending Equity = Ending Assets - Ending Liabilities
placing values in the formula
Beginning Equity = $62,000 - $27,000 = $35,000
Now use the following formula to calculate the amount of drawing
Ending Equity = Beginning Equity + Contribution + Net Income - Owner withdrawal
Placing values in the formula
$35,000 = $8,000 + $19,400 + $15,900 - Owner withdrawal
$35,000 = $43,300 - Owner withdrawal
Owner withdrawal = $43,300 - $35,000
Owner withdrawal = $8,300
If the firm sells its product at the market price of $10 per unit, how many workers should the firm employ to maximize profit if the wage rate is $55
Answers
Answer:
the data regarding output and the quantity of labor is missing, so I looked for a similar question and found the attached image.
if one employee is hired, total production = $80, and total cost = $55
if two employees are hired, total production = $150, and total cost = $110
if three employees are hired, total production = $210, and total cost = $165
if four employees are hired, total production = $260, and total cost = $260
hiring four employees should maximize profits since MC = MR
A painting operation is performed by a production worker at a labor cost of $1.40 per unit. A robot spray-painting machine, costing $15,000, would reduce the labor cost to $0.20 per unit. If the device would be valueless at the end of 3 years, what is the minimum number of units that would have to be painted each year to justify the purchase of the robot machine
Answers
Answer:
4,167 units
Explanation:
The computation of the minimum number of units that should be painted is as follows;
Let us assume the number of units in 3 years be x
So the labor cost without the machine is 1.4x
And, the Labor cost with the machine is 0.2x + $15000
Now the equation is
1.4x = 0.2 x + $15,000
x = $12500
Now
For Each year, it is
= $12,500 ÷ 3
= 4,167 units
A Company issued a one-year, 9%, $200,000 note on June 1, 2019. Interest
expense for the year ended December 31, 2019 was:
O $18,000
O $13,500
O $12,000
O $10,500
O None of the above
Answers
Answer:
O None of the above
Explanation:
The expenses at the end of December 31, 2019, will be 6 months interest.
Interest = p x r x t
in this case
p= $200,000
r=9% or 0.09
t= 6 months or 0.5 years
Interest = $200,000 x 0.09 x 0.5
Interest = $ 18,000 x 0.5
Interest = $9,000
The Lion Incorporated is currently going bankrupt and is a subsidiary of the Dorothy Ltd. The CFO of the Dorothy Ltd is preparing consolidating statements for a listing of the company on the French stock exchange. She does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. The CFO is:
Answers
Answer: In compliance with the IFRS
Explanation:
Based on the information given in the question, we can say that the CFO is in compliance with the IFRS. IFRS Standards are typically used by accountable entities. We should note that even though IFRS Standards are normally permitted, it is not required for every accountable entities.
In the scenario in the question, we are informed that the CFO does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. In this case, the CFO is in compliance with the IFRS.
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule). Required: If Campbell earns an additional $15,000 of taxable income, what is her marginal tax rate on this income
Answers
Answer: 35%
Explanation:
First and foremost, we've to calculate the amount that will be taxed on $400000 which will be:
= $46628.50 + ($400000-$204100) × 35%
= $46628.50 + ($400000-$204100) × 0.35
= $46628.50 + $68565
= $115193.5
When earns an additional $15,000 of taxable income, this means her total taxable income will be:
= $400,000 + $15,000
= $415000
Therefore, the tax amount on $415000 will be:
= $46628.5 + ($415000 - $204100) × 35%
= $46628.5 + ($415000 - $204100) × 0.35
= $120443.5
Marginal Tax rate will then be calculated as:
= change in Tax / change in Taxable income
= ($120443.5 - $115193.5) / ($415000 - $400000)
= $5250 / $15000
= 35%
1. At what level does the supervisor fit in the organizational pyramid? Describe a major trend that is changing the role of the supervisor at that level.
Answers
Answer:
1. Supervisors fit in the middle level of the organization pyramid.
2. A major trend that is changing the role of the supervisor at that level is the concepts of mentoring, coaching, and staff training. The supervisor's role is expanding to include these activities that will ensure process improvement, enforce adherence to organization's rules, and enable improved cross-functional relationships.
Explanation:
Primarily, supervisors are known to motivate employees, direct the activities of others, select the most effective communication channel, and resolve conflicts among team members. However, the changing trend now views the supervisor as an educator, sponsor, coach, counselor, and director. Therefore, the supervisor is expected to deplore all his skill-sets, including effective communication in combination with daily conflict resolution, transformational leadership, critical thinking, interpersonal relationship, time and priority management, and problem-solving skills.
True) or (False)? The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.
Answers
Answer:
The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.
False.
Explanation:
This accounting assumption is based on the use of money as a unit of measurement. The monetary unit principle assumes that all transactions or economic events recorded in the accounts of an entity can be expressed and measured in monetary terms or currency, like the dollar. The principle ascribes some stability and trust in the monetary units. What is actually described above is the periodicity concept.
8. Consider the following alternatives: i. $100 received in one year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year?
Answers
Answer:
200 option > 300 option > 100 option
300 option > 200 option. > 100 option
100 option > 200 option > 300 option
Explanation:
Given that:
At 10% interest rate:
Amount / (1 + rate)^n ; n = Period ;
Amount of $100 in 1 year
100/(1 + 0.1)^1 = 90.909
Amount $200 in 5 years :
200/(1+0.1)^5 = 124.184
Amount $300 in 10 years :
300/(1+0.1)^10 = 115.663
$200 option > 300 option > 100 option
When rate = 5% per year
Amount of $100 in 1 year
100/(1 + 0.05)^1 = 95.238
Amount $200 in 5 years :
200/(1+0.05)^5 = 156.705
Amount $300 in 10 years :
300/(1+0.05)^10 = 184.174
300 option > 200 option. > 100 option
When rate = 20% per year
Amount of $100 in 1 year
100/(1 + 0.2)^1 = 83.333
Amount $200 in 5 years :
200/(1+0.2)^5 = 80.376
Amount $300 in 10 years :
300/(1+0.2)^10 = 48.452
100 option > 200 option > 300 option
b. If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the same year, what is the value of U.S. net exports
Answers
Answer:
$2 billion
Explanation:
Foreigners spend $7 billion on U.S net exports
Americans spend $5 billion on imports
Therefore the value of U.S net exports can be calculated as follows
= $7 billion-$5billion
= $2 billion
Hence the value of U.S net exports is $2 billion
Your boss is the director of reporting for the AthensCounty Construction Agency (ACCA). It has beenhis job to track the cost of construction in AthensCounty. Twenty-five years ago he created the ACCACost Index to track these costs. Costs during the firstyear of the index were $12 per square foot of con-structed space (the index value was set at 100 forthat first year). This past year a survey of contractorsrevealed that costs were $90 per square foot. Whatindex number will your boss publish in his report forthis year
Answers
Answer:
Consider the equation as follows
Initial Price(Ct)/Final Price(Cf) = Initial Index(It)/Final Index(If)
Substitute $12 for Ct, $90 for Cf and 100 for If
$12/$90 = 100/If
If = 750
Therefore, the index number which will be published by the boss in his report is 750
Substitute $12 for Ct, 100 for It and 600 for If
$12/Cf = 100/600
Cf = $72
Therefore, the cost per square foot last year was $72
When trade barriers began to fall, what was the motivation for much of the foreign direct investment by non-U.S. firms
Answers
Answer:
The motivations were all the advantages that the U.S. market offers.
These advantages are many, because the U.S. is a developed country, with a very large population, and a robust legal system that protects private property, including the property of non U.S. firms that invest in the country.
For these reasons, once trade barriers began to fall, many non U.S. firms took advantage of the new opportunities, and started to invest in the U.S. market.
year to date, company y had earned a 7 percent return. during the same time peropd, company r earned 9.25 percent and company c earned -2.25 percent. if you have a portfolio made up of 35 percent y, 40 percent r and 25 percent c, what is your portfolio return
Answers
Answer:
the portfolio return is 5.5875%
Explanation:
The computation of the portfolio return is shown below;
Company Return Investment % Return × Investment
Y 7% 35% 2.4500%
R 9.25% 40% 3.7000%
C -2.25% 25% -0.5625%
Total 5.5875%
Hence, the portfolio return is 5.5875%
g A debit is used to record which of the... A debit is used to record which of the following: Multiple Choice A decrease in an asset account. A decrease in an expense account. An increase in a revenue account. An increase in the common stock account. An increase in the dividends accoun
Answers
Answer:
An increase in dividends account
Explanation:
In accounting, a debit is used to record an increase in asset, an increase in expense and a decrease in liability.
With regards to the above, the correct option is an increase in dividends account because dividend is a current asset hence a debit records an increase in assets. Dividend is the returns paid to an investor or shareholder who invest or buys shares in a company. It is the reward paid to an investor for investing in a company.
Classical economists stress the importance of aggregate ________ and generally believe that the economy ________ to reach full-employment equilibrium on its own.
Answers
Answer: a. Supply
b. Adjust back
Explanation:
Classical economics explains the importance off aggregate supply, and the ability of an economy to adjust back to achieve it full employment equilibrium without help or assistance but by itself.
By attaining equilibrium it means that Owing to the fair operation of opposing forces, a state of rest or equilibrium. Equal balance of any forces, or factors.
NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, which are available for sale online and in city souvenir shops. This is an example of __________________ marketing. Group of answer choices
Answers
Answer: Buzz
Explanation:
Based on the information given in the question, the above marketing is an example of buzz marketing. Buzz marketing is using wore of mouth in such a way that it'll work in ones favour whereby people will eventually start sharing it on their own or start talking about that product.
Since NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, this can motivate people to start buying the goods sold by the company.
If the direct labor rate variance is $500 favorable, and the direct labor efficiency variance is $250 unfavorable, the journal entry will include a: (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.) check all that apply Debit to direct labor rate varianceunanswered Credit to direct labor rate varianceunanswered Debit to direct labor efficiency variance Credit to direct labor efficiency variance
Answers
Answer:
Debit to direct labor efficiency variance
Credit to direct labor rate variance
Explanation:
Preparation the journal entry
Based on the information given in a situation where the direct labor rate variance is favorable with the amount of $500 which means that the FAVOURABLE VARIANCE will be CREDITED and in a situation where the direct labor efficiency variance is unfavorable with the amount of $250 which means that that UNFAVORABLE VARIANCE will be DEBITED reason been that FAVOURABLE VARIANCE are tend to be CREDITED while UNFAVORABLE VARIANCE on the other hand are tend to be DEBITED .
Therefore the journal entry will include a:
Debit to direct labor efficiency variance (UNFAVORABLE)
Credit to direct labor rate variance (FAVOURABLE)
A retail outlet for Boxo-witz Calculators sells 720 calculators per year. It costs $2 to store one calculator for a year. To reorder, there is a fixed cost of $5, plus $2.50 for each calculator. How many times per year should the store order calculators, and in
Answers
Answer:
The store should order 60 calculators, 12 times per year to minimize inventory cost.
Explanation:
Given that;
Annual demand = 720 calculators
Holding cost (Storage cost) (H) = $2 per calculator
Ordering cost (D) = $5
Economic order quantity (EOQ)
= √ 2 × A × D / H
= √ (2 × 720 × $5) / $2
= √ $7,200 / $2
= √ 3,600
= 60 calculators
Number of orders per year
= Annual demand ÷ EOQ
= 720 ÷ 60
= 12 times
Therefore, the store should order 60 calculators 12 times per year to minimize inventory cost.
Brenda wants to find the amount of dividend pald to the shareholders by JSL Inc. In which statement will JSL Inc. specifically show the dividends
pald to shareholders?
OA
trial balance
OB. balance sheet
Ос.
Income statement
OD
statement of retained earnings
ОЕ
cash flow statements
Answers
Answer:
statement of retained earnings
Explanation:
Retained earnings are the profits that a business opts not to distribute to shareholders. They are part of the shareholder's equity.
The statement of retained earnings shows the balance of retained earnings at the end of a period. Retained earnings are increased by profits and decreased by dividends paid. Preparing the statement of retained earnings involves adding net income to beginning retained earnings.
Dividends paid are subtracted from that total.
Therefore, the dividend paid out will feature in the statement of retained earnings.
The financial analysis component of a business plan is to describe
a. how your business will be organized and what type of management or department structure
your business will have
b. the ?big picture? behind your business, what your business has to offer the consumer, and
why your business will be successful
c. the size of the market, how your business will fit into the market, and how your business will
stand out from other businesses in the market
d. where the funds to start and operate your business will come from, when you expect to see
profit, and how much profit you expect to see
Answers
Answer:
Option D
Explanation:
Option D explains more in terms of financial aspects
Answer:
D.where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see.
Explanation:
Did on edge 2021
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.
Answers
Answer:
contingency.
Explanation:
Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called contingency plans.
A contingency plan can be defined as a set of alternative plans that are designed and developed by an organization for continuous operation of the business in case of an emergency or when there is a failure in the primary (core) plan.
What will be the level of interest rate, i, if investment at 0 interest is $16 million and the coefficient of invest, I, equals 0.4.
Answers
Answer:
The right solution is "16 +0.4r". A further explanation is given below.
Explanation:
The given values are:
Autonomous investment,
I = 16 million
Coefficient of investment,
g = 0.4
As we know,
Economy's investment function will be:
⇒ [tex]I(r) = I + gr[/tex]
On substituting the given values, we get
⇒ [tex]=16+0.4r[/tex]