A merger between u.s. steel and general motors would be an example of a

Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000

jarptica [38.1K]

Answer:

e.$8,000 of fixed costs and $108,000 of variable costs.

Explanation:

Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.

The cost per unit to produce 15,000 units is:

$C =\frac{\$90,000}{15,000}\\C=\$6/unit$

Assuming a new production volume of 18,000 units, budgeted variable costs are:

$V_c=\$6*18,000= \$108,000$

The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.

8 0

3 years ago

If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?

Juliette [100K]

Question:

Suppose there is a bond in ABC Company that that pays coupons of 8.5%, and suppose that these coupons are paid annually.

Suppose the face value of the ABC bond is $1000 and the maturity is 11 years.

If the appropriate discount rate for this bond is 6%, what would you be willing to pay for ABC’s bond?

Answer:

Price of bond = $ 1197.17

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The price of the bond can be worked out as follows:

Step 1

PV of interest payments

Annual Interest payment = 8.5%× 1000 = 85

Annual yield = 6%

Total period to maturity (in years) = 11

PV of interest =

85 × (1- (1+0.06)^(-11)/)/0.06 = 670.38

Step 2

PV of Redemption Value

= 1,000 × (1.06)^(-11) = 526.78

Step 3:

Price of bond

670.38 + 526.78= 1,197.17

Price of bond = $ 1197.17

6 0

3 years ago

Star Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1 before entering into an operating lease. Not

Fynjy0 [20]

Answer:

The return on assets and debt/equity ratio does not change

Explanation:

An operating lease does not affect assets and liabilities. From the formula:

Equity = Assets - Liabilities, since both assets and liabilities are not affected (they remain unchanged) therefore the equity is also the same.

The debt/ equity ratio = total liabilities/total equity. Since liabilities and equity remain unchanged, therefore The debt/ equity ratio is the same.

Also the return of assets (earnings/assets) remain the same

3 0

3 years ago

Sarah's dog had purebred puppies that she decided to sell on www.puppyfind.com. She ships them using an airline. If a puppy dies

Cerrena [4.2K]

Answer:

The buyer should sue the airline carrier

Explanation:

Because it is the airlines job to make sure that the puppy are safe and health

8 0

3 years ago

douglas pays selena $43,300 for her 30% interest in a partnership with net assets of $127,900. following this transaction, dougl

Katarina [22]

Selena receives $43,300 from Douglas for her 30% stake in a partnership with $127,900 in net assets. After this transaction, the capital account of Douglas should have a account balance of $38,370.

Douglas's Capital account balance

= Net assets x30%

= $127,900 x 30%

= $31,875

Therefore, Douglas's capital account should have a credit balance of $38,370

A financial repository's account balance represents the amount of money there is at the end of the current accounting period. It is the sum net assets of the balance carried over from the previous month and the net difference between the credits and debits that have been recorded during any given accounting cycle.

The amount due or the net debt may be shown in an account balance. The former is frequently depicted in financial accounts that include net assets recurring bills, like those for utilities or gym memberships. The latter, on the other hand, is reflected in accounts with negative cash balances, such as bank overdrafts.

Learn more about account balance here

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4 0

1 year ago