Answer:
A. Date Account Title Debit Credit
Insurance expense $30,700
($3000+$32500-$4800)
Prepaid insurance $30,700
B. Date Account Title Debit Credit
Insurance expense $30,700
Prepaid insurance $30,700
Answer:
As robotics quickly advance, scientists say the lines between robots and humans is beginning to blur.
That means one day with robotic prosthetics that work seamlessly with a human's muscles, with tiny robots that swim in our blood streams and fix medical problems and nano-scale robots implanted in our brains, we will become robotic humans.
As scary and sci-fi as that may sound, researchers say robotics will cure diseases, make amputees feel whole again and greatly extend our lives
Explanation:
Answer:
In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.
As the first cash flow is received today and the last will be received 3 years form now there will be a total of 4 cash flows
1) 218.19 (Will not be discounted as we are receiving it today in the present)
2) 218.19/1.0987 (Discount by 1 year as cash will be received in 1 year)
3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)
4) 218.19/ 1.0987^3 (Discount by 3 years as cash will be received in 3 years)
= 218.19 + 198.58 + 180.74+ 164.51 = 762.02
PV of Bond = 1529-762.09= 766.91
Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000
In a financial calculator put
PV= -766.91
N= 46
FV=1000
PMT= 32
and compute I
I is 4.38 and we will multiply it by 2 because the payments are semi annual. So we will get an I of 8.76
YTM= 0.0876
Explanation:
Answer:
A Firm
The firm's WACC is:
= 12.16%
Explanation:
a) Data and Calculations:
Common Bonds
Stock
Outstanding shares/bonds 2,000,000 2,000
Market price per unit $2 $1,200
Total market value $4,000,000 $2,400,000
Total value of debt and equity = $6,400,000
Weight 62.5% 37.5% ($2,400/$6,400*100)
Cost of bonds (coupon rate) = 10%
Tax rate = 34%
Firm's beta = 1.5
Risk-free rate = 5%
Market risk premium = 7%
After-tax cost of bonds = 6.6% (1 - 0.34) * 10%
Cost of common stock =
Risk Free Rate + Beta x (Market Return - Risk Free Rate)
= 5% + 1.5 x (7%)
= 5% + 10.5%
= 15.5%
WACC = 15.5% * 62.5% + 6.6% * 37.5%
= 0.096875 + 0.02475
= 0.1216
= 12.16%
Answer:
measures the value that a buyer places on a good.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.
Willingness to pay measures the value that a buyer places on a good or product. Thus, when this value is high, the customer would ultimately buy a product and vice-versa.
