Answer:
d. 5.08%
Explanation:
We have to first calculate the YTM of the bond, and then apply the tax shield.
To get the YTM we have to calculate the rate of return of an annuity of 46.25 for 20 years compounding semiannually at IRR rate and the present value of the face value redeem in 20 years.
IRR = 0.084656891 (it should be done using financial calculator or excel or a similar software program)
then we apply the shield tax to the IRR:
IRR x (1 - tax-rate) = Cost of debt
0.084656891 * ( 1 - 0.4) = 5.0794= 5.08
Answer and Explanation:
The computation is shown below:
1. Nominal exchange rate is
= (Real exchange rate) × (foreign price level ÷ domestic price level)
= 10 × (4 ÷ 8)
= 5
2. Change in Nominal exchange rate is
Change in Nominal exchange rate = (real exchange rate change ) + foreign inflation - domestic inflation
= 10 + 4 - 6
= 8%
3.) foreign inflation rate
= Change in Nominal exchange rate - real exchange rate change + domestic inflation
= 5 - 8 + 3
= 0%
We simply applied the above formulas
Answer:
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Explanation:
For calculation, following things need to be considered which is shown below:
1. Product A process costing = Pounds × Per pound price
= 34,000 × $8
= $272,000
2. Product A costing after selling = Pounds × sale price per pound
= 34,000 × $14
= $476,000
3. Difference of costing :
= Product A costing after selling - Product A process costing
= $476,000 - $272,000
= $204,000
4. Invested amount = $227,800
5. Actual Difference = Invested amount - costing difference
= $227,800 - $204,000
= $23,800
After calculating, we get to know that the Product A should be sell now because, it show a difference of $23,800 through which company can earn more in the future. As the company will be better off by $23,800
Answer: $3,704,040
Explanation:
The issue/ selling price of a bond is calculated by the formula:
= Present value of coupon payments + Present value of face value
The coupon payments will be an annuity and in cash terms are:
= 8% * 4,500,000
= $360,000
Selling price:
= (360,000 * Present value of an ordinary annuity factor, 11%, 10 periods) + (4,500,000 * Present value discount factor, 11%, 10 periods)
= (360,000 * 5.889) + (4,500,000 * 0.352)
= $3,704,040
Answer:
$1829000.
Explanation:
Given: Cash sales, $540,000.
Credit sales, $1,440,000.
Sales returns and allowances, $99,000.
Sales discounts, $52,000
Now, computing net sales of Newark.
Net sales= 
Net sales= 
⇒ Net sales= 
∴ Net sales= 
Hence, Newark´s net sales is $1829000.
