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brilliants [131]
2 years ago
8

When a bond sells at a premium, interest expense will be:

Business
1 answer:
inessss [21]2 years ago
8 0
Less than the bond interest payment
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What is an insurance premium?
bulgar [2K]

Answer:

An insurance premium is the amount of money an individual or business pays for an insurance policy.

Explanation:

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6 0
3 years ago
A machine has a setup time of 150 minutes and run time of 0.0075 minutes per piece. Order sizes are typically 10,000 pieces. Aft
kolbaska11 [484]

Solution:

Given,

Setup time of machine= 150 min

0.0075 min/pc.

1 order =10,000 pcs.

1 day= 2 shifts X 450 min each

1 order per batch

10000 pcs per batch before setup required again

(150 min setup time) –> (75 min run time for 10000 pcs) –> (150 min setup time) –> (75 min run time for 10000 pcs) = 450 mins

Total for shift 1 = 20,000 pcs

Similarly, for Shift 2, total production cap = 20,000 pcs

So, total capacity in this case is 40,000 pieces/day

          3 orders per batch

         30,000 pcs per batch before setup required again

Shift 1: (150 min setup time) –> (225 min run time for 30,000 pcs) –> (75 min setup time) = 450 mins

Shift 2: (75 min setup time) –> (225 min run time for 30,000 pcs) –> (150 min setup time) = 450 mins

So, total capacity in this case is 60,000 pieces/day

All orders can be combined in one batch

No cap on number of orders in a batch

Shift 1: (150 min setup time) –> (300 min run time for 40,000 pcs) = 450 min

Shift 2: (450 min run time for 60,000 pcs) = 450 min

So, total capacity in this case is 100,000 pieces/day

From (i) to (ii) there is 50% increase in capacity

From (ii) to (iii) there is 66.67% increase in capacity

4 0
3 years ago
Which one of the following stocks is correctly priced if the risk-free rate of return is 3.9 percent and the market risk premium
Evgesh-ka [11]

Answer:

E 0.95 11.88%

Explanation:

First we have to calculate the market return from market risk premium using the following formula:

Market risk premium=Market return-Risk free return

Market return=3.9%+8.4%=12.3%

Above market return will be applied to the Capital asset pricing model formula for the purpose of calculating expected return.

CAPM=Risk free return+Beta(Market return-Risk free return)

A.

Expected return=3.9%+0.77(12.3%-3.9%)=10.37%

Incorrect because the expected return is 10.37% as compared to the 7.86% given in question.

B.

Expected return=3.9%+1.55(12.3%-3.9%)=16.92%

Incorrect because the expected return is 16.92% as compared to the 12.65% given in question.

C.

Expected return=3.9%+1.36(12.3%-3.9%)=15.32%

Incorrect because the expected return is 15.32% as compared to the 17.33% given in question.

D.

Expected return=3.9%+1.33(12.3%-3.9%)=15.072%

Incorrect because the expected return is 15.072% as compared to the 11.93% given in question.

E.

CAPM=3.9%+0.95(12.3%-3.9%)=11.88%

Correct because the expected return is 11.88% as given in question.

So the correct option is E.

7 0
4 years ago
Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $29,000. The accumulated depreciation a
Annette [7]

Answer:

$7,900 = selling price

Explanation:

Giving the following information:

Original cost= $29,000

Accumulated depreciation= $24,000

Gain= $2,900

<u>First, we will determine the book value:</u>

<u />

Book value= original cost - accumulated depreciation

Book value= 29,000 - 24,000 = $5,000

<u>Now, the selling price:</u>

Gain/loss= selling price - book value

2,900= selling price - 5,000

$7,900 = selling price

7 0
3 years ago
On January 1, 2021, Splash City issues $330,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and
Sholpan [36]

Find the answer in attachment

3 0
4 years ago
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