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3 years ago

6

If a corporate bond with face value of $1,000 has an interest rate of seven percent paid once a year for a term of 10 years, wha

t is the size of the coupon payment? $1,000 $700 $70 $7

1 answer:

KiRa [710]3 years ago

4 0

I believe the answer is $700.

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Danny "dimes" donahue is a neighborhood's 9-year-old entrepreneur. his most recent venture is selling homemade brownies that he

skelet666 [1.2K]

Answer:

A) Price elasticity of demand = 8

B) PED is elastic

C) increase Danny's total revenue

Explanation:

we can calculate the price elasticity of demand using the formula:

PED = % change in quantity demanded / % change in price = [(300 - 100) / 100] / [(1.5 - 2) / 2] = (200 / 100) / (-0.5 / 2) = 2 / 0.25 = 8

if the PED is the same when the price decreases from $1 to $0.50, total revenue will :

when price = $1.50, total revenue = $1.50 x 300 = $450
when price = $1, total revenue = $1 x 1,100 = $1,100

*a 33.33% decrease in the price will cause a 266.6% increase (= 33.33% x 8) increase in the quantity demanded = 300 units + (300 x 266.6%) = 300 + 800 = 1,100 units

7 0

3 years ago

is the most comprehensive standard as it provides a set of requirements for a quality management system for all organizations, b

Greeley [361]

ISO 9001:2008 is the most comprehensive standard as it provides a set of requirements for a quality management system for all organizations, both private and public.

<h3>What is ISO 9001:2008 Quality management systems ?</h3>

It aims to increase customer satisfaction through the effective application of the system, including processes for continuous system improvement and the assurance of conformity to customer and applicable statutory and regulatory requirements. The ISO 9001:2008 standard outlines the specifications for a quality management system where a company must prove its capacity to consistently deliver a product that complies with customer and relevant legal and regulatory criteria.

No matter the type, size, or type of product offered, all requirements of ISO 9001:2008 are generic and intended to be relevant to all enterprises.

Any ISO 9001:2008 requirement(s) that cannot be applied because of the nature of the business or the product might be excluded.

When exclusions are made, claims of conformity to ISO 9001:2008 are not acceptable unless they are restricted to Clause 7 requirements and do not affect the organization's capacity or obligation to deliver a product that complies with the needs of the customer and any applicable legal and regulatory requirements.

To learn more about the, ISO 9001:2008 Quality management systems visit:

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8 0

1 year ago

James Corporation owns 80 percent of Carl Corporation's common stock. During October, Carl sold merchandise to James for $205,00

lana66690 [7]

Answer:

$35,143

Explanation:

Step 1 : Determine the value of Ending Inventory

Ending Inventory = $205,000 x 60 %

= $123,000

Step 2 : Determine the amount of unrealized profit in inventory

The Subsidiary (Carl Corporation) sold inventory to Parent (James Corporation).

James Corporation is the Parent of a Group since its owns more than 50% of voting rights of Carl Corporation

We use the gross profit percentage of the seller to determine the unrealized profit in inventory which is 40%.

Unrealized profit in inventory = 40/140 x $123,000

= $35,143

Conclusion :

The amount of intra-entity gross profit in inventory at December 31 that should be eliminated in the consolidation process is $35,143.

7 0

3 years ago

What economic problem did many countries face as a result of world war 2

rodikova [14]

Answer:

trade deficits, lack of investment capital, and wide gaps between rich and poor

Explanation:

6 0

3 years ago

A firm is considering a simple investment project. If it goes forward, then the firm must pay $900 now, but it receives a paymen

kiruha [24]

Answer:

a) scenario A NPV positive 28.68, scenario B NPV Negative 16.16, scenario C NPV positive 664.92, scenario D NPV positive 889.72 (b) The scenario with the highest positive NPV is the most profitable (c) The scenario B with the interest rate of 17% has Negative NPV of 16.16 produces less investment (d) The scenario C with the highest interest rate of 20% has the positive NPV of 664.92 he scenario D with the highest interest rate of 20% has the highest positive NPV of 889.72, produces more investment

Explanation:

Calculation of Discount Factor

Effective rate for scenario C and D

Using the formula (1 + m/1 + i)∧n - 1 Where i = rate of inflation, m = cost of capital, n = numbers of years

For C since interest rate = 20% = 20÷100 = 0.2, since rate of inflation = 2% = 2÷100 = 0.02

(1 + 0.2/1 + 0.02)∧n - 1

= 1.2 /1.02 -1

=1.1764 -1

=0.1764 ×100 = 17.64%

Discount Factor for C using the formula ( 1 + r)∧-n -1/ r since n = 3 ,r = 0.1764

= ( 1 + 0.2)∧-3 - 1/ 0.1764

= (1.2)∧-3 -1/0.1764

=0.5787 -1

= 0.4213÷ 0.1764

= 2.3883

For D Effective rate

( 1 + 0.2)∧n - 1/(1 + 0.05)

= 1.2/1.05 -1

=1.1428 -1

= 0.1428 × 100 = 14.28%

DF for D

= (1 + 0.2)∧-3 -1 / 0.1428

=0.5787 -1 = 0.4213

=0.4213÷0.1428

=2.9503

DF for year 1 and 2 for C and D

Using the formula ( 1 + r) ∧-n

( 1 + 0.2)∧-1 = ( 1.2)∧-1 = 0.83

(1 + 0.2)∧-2 = (1.2)∧-2 = 0.694

DF for scenario A For year 1 -3 using ( 1+ r)∧-n

= ( 1 + 0.14)∧-1 = (1.14)∧-1 = 0.8772

= (1+0.14)∧-2 = (1.14)∧-2 = 0.7695

=(1+0.14)∧-3 = (1.14)∧-3 = 0.6750

DF for scenario B using the same formula

=( 1 + 0.17)∧-1 =(1.17)∧-1 = 0.8547

=(1+0.17)∧-2 = (1.17)∧-2 = 0.7305

=(1 + 0.17)∧-3 = (1.17)∧-3 = 0.6244

Scenario A

Year. C.F. DF PV

$ $

0. 900 1 (900)

1 400 0.8772 350.88

2 400 0.7695 307.8

3 400 0.6750 270

-----------

NPV positive 28.68

-------------

Workings = C F × DF = PV

Scenario B

Year. CF DF PV

$ $

0 900 1 (900)

1. 400 0.8547 341.88

2 400 0.7305 292.2

3. 400 0.6244 249.76

-------------

NPV Negative 16.16

------------------

Scenario C

Year CF DF PV

$ $

0 900 1 (900)

1 400 0.83 332

2 400 0.694 277.6

1-3 400 2.3883. 955.32

----- ---------

NPV positive 664.92

----------------

Scenario D

Year CF DF PV

$ $

0 900 1 (900)

1 400 0.83 332

2. 400 0.694 277.6

1-3 400 2.9503 1,180.12

---------------

NPV positive 889.72

-----------------

6 0

3 years ago