How much should you pay for a $1,000 bond with 10% coupon, annual payments, and 5 years to maturity if the interest rate is 12%?

Answer:

The answer is given in detailed below along with headings separated for each part of the question

Explanation:

External Competitiveness and Internal Alignment

The comparisons with competitors with regard to the income received, some of which offer even high salaries in order to get the best individuals to work for them refer to as external competitiveness. While in the case of Internal alignment the comparison is done on the individuals job or skill level with each others and with the organisations objectives.

Importance of External Competitiveness

This is important depending on the goal of the organisations such that they provide attractive pay packages to retain their employees while ensuring that the labour cost is controlled so that it's products/services prices remain competitive in the market.

Factors shaping the organisations external competitiveness

The factors affecting the external competitiveness are as given below:

(1) Customs specific to both the organisations and its employees.

(2) Labour Market Competition

(3) The Competition in the market of product/service

These factors combined affect the level of pay an employee receives within an organisation.

Answer and Explanation:

The impairment loss held on the assets would be recorded as an expense and if there is any impairment loss of any earlier period with respect to the revalued asset so it would be adjusted to the down value of the asset and if there is any balance left over so it would be charged as an expense

Now in the case when there is any revaluation of the impaired asset held in the next period so it would be recorded in the income statement and if there is any balance left so it would be recorded as a revaluation reserve

So it would have to park the rising value of the asset

Explanation:

A successful leader is one who manages to coordinate and motivate his subordinates so that organizational goals and objectives are achieved.

There are certain characteristics that make a leader more successful than others, they are, they have conceptual skills to see the whole organization as an integrated system whose parts are essentially important to the success of an organization. So a good leader is one who will know how to recognize the importance of people in the organization and know that they have needs that they want to be met so that they can develop their potential.

 It is necessary, then, that the leader be the main example of conduct for his subordinates, that is, act ethically, know how to guide and motivate, provide feedback, be assertive, etc.

Answer:

a. 9.17%

b. 8.64%

Explanation:

a. Arithemetic mean;

= (18 + 18 + 15 + (-4) + 15 + (-7) ) / 6

= 9.17%

b. Geometric mean;

= [ ( 1 + 18%) * ( 1 + 18%) * ( 1 + 15%) * (1 - 4%) * (1 + 15%) * (1 - 7%)] ^1/6 - 1

= 0.0863897168

= 8.64%

Answer:

The expected loss in dollars of each ticket is -$3.5

Explanation:

The computation of the expected gain or loss in dollars of each ticket is shown below:

The probability of winning each of them would be

= 1 ÷ 3,000

Now the expected value is

= $45,000 × (1 ÷ 3000) + $900 × (1 ÷ 3000) + $600 × (1 ÷ 3000)

= 15 + 0.3 + 0.2

= 15.5

Now the cost of the ticket is $18

So, the loss would be

= $18 - 15.5

= -$3.5

Answer and Explanation:

The computation is shown below:

a. Inventory turnover

= Cost of goods sold ÷ average inventory

= $5,058,900 ÷ 328,500

= 15.4 times

b. The number of days' sales in inventory is

= Total number of days in a year ÷ inventory turnover ratio

= 365 ÷ 15.4

= 23.70 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Answer:

$1.25

Explanation:

Contribution margin per unit is computed as;

= Selling price per unit - Variable costs per unit

Selling price per unit = $625,000 ÷ 250,000 units = $2.50 per unit

Variable costs per unit = ($212,500 + $100,000) ÷ 250,000 units = $1.25 per unit.

Therefore,

Contribution margin per unit

= $2.50 - $1.25

= $1.25

The contribution margin per unit for Cumberland is $1.25

Answer:

(A) The price you will be willing to pay for the portfolio is $194,690.

(B) The expected rate of return is 13%.

(C) The price you will be willing to pay for the portfolio is $181,818.

Explanation:

A. If you require a risk premium of 7%, how much will you be willing to pay for the portfolio?

The amount you be willing to pay for the portfolio can be calculated using the following formula:

The price you will be willing to pay for the portfolio = Expected cash flow / (1 + Required rate of return) ................... (1)

Where;

Expected cash flow = ($150,000 * 0.5) + ($290,000 * 0.5) = $220,000

Required rate of return = Risk free rate + Risk premium = 6% + 7% = 13%, or 0.13

Therefore, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.13) = $220,000 / 1.13 = $194,690

B. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be?

The expected rate of return (E(r)) can be calculated using the following formula:

Amount to be paid for the portfolio * [1 + E(r)] = Expected cash flow

Therefore, we have:

$194,690 * [1 + E(r)] = $220,000

$194,690 + ($194,690 * E(r)) = $220,000

$194,690 * E(r) = $220,000 - $194,690

$194,690 * E(r) = $25,310

E(r) = $25,310 / $194,690 = 0.13, or 13%

Therefore, the expected rate of return is 13%.

C. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now?

Required rate of return = Risk free rate + Risk premium = 6% + 15% = 21%, or 0.21

Using equation (1) in part A, we have:

The price you will be willing to pay for the portfolio = $220,000 / (1 + 0.21) = $220,000 / (1.21) = $181,818

Answer:

A. It is necessary for job placement.

Answer:

9.55%

Explanation:

WACC for the project=We*Ke+Wp*Kp+Wd*Kd*(1-tax rate)

We=weight of equity=equity value/total cost of the project=$880,000/$1,708,000=51.52%

Wp=weight of preferred stock=preferred stock value/total cost of the project=$78,000/$1,708,000=4.57%

Wd=weight of debt=value of debt/total cost of the project=$750,000/$1,708,000=43.91%

Ke=cost of equity=13.2%

Kp=cost of preferred stock=9.9%

Kd=cost of debt=8.7%

tax rate=40%

WACC for the project=(51.52% *13.2%)+(4.57% *9.9%)+(43.91% *8.7%)*(1-40%)=9.55%

Answer: D. Unemployment rates are rising while GDP is falling.

Explanation:

A rising Gross Domestic Product (GDP) and a low unemployment rate are signs that an economy is doing well because it shows that the economy is growing and people have jobs that can give them access to income to spend in the economy.

If Unemployment starts rising therefore and GDP is falling, the economy is not growing but is rather contracting. People increasingly do not have access to income to spend on goods and services and companies are not hiring people because they are unable to sell as much goods and services.

Answer: D

Explanation: 11.4.2 test

Answer:

9.411 %

Explanation:

COst of preferred stock can be calculated by dividing the dividend by the market price per share

DATA

Dividend rate = 8%

Par value = $100

Dividend = 8% x $100 = $8

Market price = $85

Solution

Cost of Preferred stock = Dividend / Market price

Cost of Preferred stock= 8% ×$100/$85

Cost of Preferred stock= 9.411 %

Answer:

D. Has more money for research and development

Explanation:

Answer:

d

Explanation:

Answer:

-$158000

Explanation:

Net income belongs to cash flows from operating activities while the purchase of equipment would be shown as cash flow under investing activities.

Cash flow used by financing activities= Issued common stock-cash dividends-cash used in settling notes-cash paid for treasury stock

Cash flow used by financing activities=$78,000-$13000-$105000-$118,000

cash flow used by financing activities=-$158000 (negative sign indicates cash outflow rather than inflow)

Answer:

$847.33

Explanation:

we can use the present value of an annuity formula to calculate the monthly payment:

present value = monthly payment x PV annuity factor

monthly payment = present value / PV annuity factor

monthly payment = $18,000 / 21.243 = $847.33

Answer:

Semiannual deposit= $34,241.97

Explanation:

Giving the following information:

Future value (FV)= $500,000

Number of periods (n)= 6*2= 12

Interest rate= 0.07/2= 0.035

To calculate the annual deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= semiannual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (500,000*0.035) / [(1.035^12) - 1]

A= $34,241.97

Answer:

7

Explanation:

meow

Answer: $2000

Explanation:

From the question, we are informed that Ralph gives his daughter, Angela, stock (basis of $8,000; fair market value of $6,000) and that Angela subsequently sells the stock for $10,000.

The realized gain or loss will be calculated as:

Sale value of stock = $10,000

Basis of stock = $8000

Realized gain will then be:

= $10,000 - $8,000

= $2000

Answer:

$1,500

Explanation:

Since the season lasts 4 months, the membership fees must be recognized over the whole 4 month period, that means that the club must recognize $100 / 4 = $25 per month per membership sold.

The company sold 60 season memberships, so it must recognize 60 x $25 = $1,500 in revenues.

Answer:

B. Flip charts and whiteboards

Explanation:

In this scenario, the best visual aid to use would be Flip charts and whiteboards. This is mainly due to the main reason that these visual aids are the best choice for being able to tailor the content to best fit the needs of your audience. Using these objects you are able to create your own visual aids on the spot to explain the topic that you are trying to demonstrate in a way that the specific audience will best be able to visualize it. Therefore, making it the best option in this scenario.

Answer: c) increase cash flow from operating activities.

Explanation:

If there is a decrease in the Accounts Receivable, this means that some receivables have settled their debt to the company which means that the company got cash. Cashflow therefore increases.

Accounts receivables relate to Sales which is part of the operations of the business so this is an increase in cashflow from operating activities.

Answer:

True

Explanation:

Danaher top executives have been actually very good at carrying out mergers and acquisitions, including the acquisition of high tech firms after year 2000. Danaher is a very lean corporation in the sense that it sales levels are very high compared to the number of corporate executives and the number of reporting units. Even the DBS Office was small compared to how important it is.  Danaher has been able to use DBS successfully and constantly improving through feedback.

The correct answer to this open question is the following.

You forgot to include the question. Here we just have a statement, but no question at all.

Maybe you wanted to add an opinion or you need to say if this individual needs an extra credit card.

If that is the case, then we can comment on the following.

No. Marshall doesn't need an extra credit card. He already has six, another one could be a burden to his financial record.

Marshall is doing well. He lives a solidly middle-income lifestyle. He’s paying his student loans, his rent, and all of his other expenses on-time. There is no reason to incur more debt with another credit card.

Plus the fact that the other six cards pay 0% interest for the first year, free airline miles, and 20% off his first month’s purchases at his favorite store. But all of that is going to change after the first year and interests are coming.

Until today, he has been strict in paying his full balance each month and he is responsible enough to stop using the card once the initial features expire. Although he desires to take a vacation using the advantages of another credit card, he has to be disciplined and refrain to get it. Six cards are too many for the way of life and the job he has. The moment he loses control of the use of the credits and gets into debt, plus interests, problems are going to raise.

Answer: Asset A

Explanation:

The risk-averse investor will prefer the asset that has a lesser standard deviation because it indicates less risk.

Reward-to-variability ratio = Expected return/ standard deviation

Standard deviation = Expected return /  reward-to-variability ratio

Asset A deviation = 0.15/0.4 = 0. 375

Asset B deviation = 0.2/0.3 = 0.667

Risk Averse investor will pick Asset A with the lesser deviation.

Answer:

$584,000

Explanation:

Calculation for the amount of pension liability that should be reported

Projected benefit obligation $2,561,000

Less Plan assets at fair value 1,977,000

Pension liability $584,000

Therefore the Pension liability balance at December 31, 2017 will be $584,000

Answer: Interest expense=$108

Explanation:

Interest expense =Principal x Rate x Time ( Period)

Where

Principal = $16,200

Rate =, 8%

TIme ( Period ) =  From December 1st to 31`st = 30 days

Interest expense= P x R x T

= $16,200 X 0.08 X 30/360

=$108

The amount of interest expense accrued at December 31 on the note is $108

The amount of interest expense that is accrued at December 31 on the note $108.

Using this formula

Accrued interest expense=Note payable × Interest rate × Time period

Where:

Note payable=$16,200

Interest rate =8%

Time period=30/360

Let plug in the formula

Accrued interest expense= $16,200 × 8% × (30 ÷ 360)

Accrued interest expense= $108

Inconclusion the amount of interest expense that is accrued at December 31 on the note $108.

Learn more here:https://brainly.com/question/14526443

Answer:

D) $8,276

Explanation:

The question is not complete, hence find below question:

Harry Morgan plans to make 30 quarterly deposits of $200 into a savings account. The first deposit will be made immediately. The savings account pays interest at an annual rate of 8%, compounded quarterly. How much will Harry have accumulated in the savings account at the end of the seven and a half-year period? (Use the appropriate table in the text.)

A) $8,114

B) $24,469

C) $6,000

D) $8,276

Note that this is a case of annuity due whose future value formula is found below:

FV=quarterly payment*(1+r)^n-1/r*(1+r)

FV=future value of quarterly deposits which is unknown

quarterly deposit=$200

r=quarterly interest rate=8%/4=2%

n=number of quarterly deposits in 7.5years=7.5*4=30

FV=200*(1+2%)^30-1/2%*(1+2%)

FV=200*(1.811361584 -1)/2%*(1+2%)

FV=200*0.811361584/2%*1.02=$8,276

Answer:

Open end mortgage

Explanation:

Open end mortgage is the type of mortgage allows the loan beneficiaries to borrow an additional money to the main loan taken.

In this case, Pete needs to make some repairs to his home so he obtained a mortgage that secures the amount of the loan and ‘ any future funds’ that Pete gets from the lender which is a characteristic of an open end mortgage.

Answer:

No, taking into account the pandemic, companies should not reduce their leverage, as this would make it very difficult for small and medium investors to invest in a context of lack of income and shortage of available circulating money.

Therefore, leverage implies the possibility for investors to access the necessary funds to be able to invest their money, without the need to dispose of their savings or the money they use for essential activities.

Answer:

13.54%

Explanation:

Debt Equity Ratio (Debt/Equity)=0.57

Yield to Maturity (YTM) on bonds (Cost of Debt) (Kd) = 11%

Cost of Equity (Ke) = 17%

Income Tax Rate= 32%

Computation of WACC

Particulars   Proportion (1)     Cost (2)    Weighted Cost (1*2)

Equity                0.6369                 17                   10.8273

Bond (Debt)       0.3631                 7.48               2.7160

Total                        1                                            13.5433

Therefore, the WACC of Company= 13.54%

Working Note 1

Computing Proportion

Debt/Equity=0.57

Therefore Debt= 0.57 Equity

Lets assume Equity = 10

So Debt = 5.7

Hence, Proportion is as follows:  

Equity= 10/15.7 =0.6369

Debt= 5.7/15.7 = 0.3631

Working Note 2

After tax cost of Debt = 11 * (1 - 0.32)

After tax cost of Debt = 11 * 0.68

After tax cost of Debt = 7.48%