1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brums [2.3K]
3 years ago
8

Nichols Enterprises has an investment in 26,000 bonds of Elliott Electronics that Nichols accounts for as a security available f

or sale. Elliott bonds are publicly traded, and The Wall Street Journal quotes a price for those bonds of $14 per bond, but Nichols believes the market has not appreciated the full value of the Elliott bonds and that a more accurate price is $24 per bond. Nichols should carry the Elliott investment on its balance sheet at:
Business
1 answer:
Crazy boy [7]3 years ago
4 0

Answer:

$ 364,000

Explanation:

Given;

The number of bonds in which investment is made = 26000

Quote price of the bond = $ 14 per bond

Actual price of the bond = $ 24

Now,

the investment amount is carried out using the quote price of the bonds in the balance sheet

therefore,

Nichols should carry the Elliott investment on its balance sheet as :

= number of bonds invested × quote price of the bond

or

= 26000 × $ 14

or

= $ 364,000

You might be interested in
Which of the following statements about the segment margin is not true? In preparing a segmented income statement, the variable
Trava [24]

Answer: The segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin

Explanation:

Segment margin is referred to the net profit or the net loss that a particular segment of a business makes. Segment margin is used to know segments that are performing well.

It is also used to know the long-run profitability of a particular segment as it shows the margin that is available after the cost has been covered by a segment.

Based on the above illustration, the statement that isn't true will be "the segment margin is obtained by deducting the common fixed costs that have been allocated to a segment from that segment's contribution margin".

This is false as segment margin is gotten after the traceable fixed costs of a segment has been subtracted from the contribution margin of that particular segment.

8 0
3 years ago
Short Term Inc. has issued zero-coupon bonds that mature in one year. The returns from holding these bonds have a beta of 0.25.
Nataly [62]

Answer:

1. Current bonds price = $81.86.

2. Yield to maturity  = 22.16%.

3. 3.  Expected Return = 7.5%.

Explanation:

Required Rate = Rf + beta*MRP

          = 5% + 0.25*(15% - 5%)

       = 5% +0.25*10%

              = 5% + 2.5% = 7.5%

 Required Rate = 7.5%

  Expected Future Value = 70% x $100 + 30% x $60

       = (0.7*$100) + (0.3*$60)

       = $(70+18) = $88

    Expected Future Value = $88

1.  Current bonds price = 88/1.075 = $81.86

2.  Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 =   22.159785% = 22.16%

3.  Expected Return = 7.5%

6 0
4 years ago
Tesla wanted to break into the electric vehicle (EV) marketplace with a luxury sports model. At that time, economic value was mo
andreev551 [17]

Answer:

B. attribute

Explanation:

Tesla used the attribute base to position itself in the market

8 0
3 years ago
Did juice wrld actually die? Or did he fake his death?
Neporo4naja [7]

Answer:

he actually died

Explanation:

he died of an accidental drug overdose which caused him to have a seizure.

6 0
3 years ago
Read 2 more answers
When calculating a project’s net present value, which type of cash flows should be considered? Question 2 options: A) Free cash
irina [24]

Answer:

Operating cash flows

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV is a capital budgeting method used to determine profitable investments

7 0
3 years ago
Other questions:
  • A 10-year semi-annual coupon bond with an $1000 par value pays an annual coupon rate of 6% and the market requires 8% APR. What
    9·1 answer
  • Smart Phone Inc. manufactures its custom phone cases for its awesome phones and tablets. It also manufactures its custom touch s
    14·1 answer
  • The Window Store will have a value of $139,000 if the economy does well this coming year and a value of $121,000 if the economy
    8·1 answer
  • - Safety (Security) Stock:
    7·1 answer
  • _______________________ managers subscribe to the traditional view of direction and control of subordinates, who they see as ind
    10·1 answer
  • LO 4.7In a job order cost system, factory wage expense is debited to which account?
    5·1 answer
  • Q 1.31: Nathaniel and Hosea have both invested $25,000 in businesses. Now they both want to sell out and recoup their money. If
    5·1 answer
  • Perry, a buyer for Superior Products Company, a manufacturer of bulletin boards and other office supplies, visits a lumberyard a
    7·1 answer
  • The actual cost of direct materials is​ $47.50 per pound. The standard cost per pound is​ $51.75. During the current​ period, 7,
    9·1 answer
  • The Accounts Payable account has a beginning balance of $11,400 and the company purchased $52,000 of supplies on account during
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!