Answer:
FIFO= $2,580
LIFO= $2,325
Explanation:
Giving the following information:
(1) 155 units at $7
(2) 410 units at $8
(3) 100 units at $9.
Assuming there are 310 units on hand.
FIFO (first-in, first-out) method:
Ending inventory= last units purchased
Inventory= 100*9 + 210*8= $2,580
LIFO (last-in, first-out)
Inventory= first units purchased
Inventory= 7*155 + 8*155= $2,325
Answer:
Investments in liquid securities, such as stocks, bonds, and derivatives, are not included in cash and equivalents.
Explanation:
Even though such things may be easily turned into cash typically with a three day settlement period, they are still excluded. The assets are listed as investments on the balance sheet.
Answer:
The dollar value of an 01 is:
$78.4472
Explanation:
a) Data and Calculations:
Bond coupon = 7.6%
Current price = $1,032.20
The yield to maturity value = $1,032.20 * 1.076 = $1,110.6472
Dollar value of an 01 = $1,110.6472 - $1,032.20 = $78.4472
b) In calculating the dollar value of the bond, which is a measure of the change in the value of the bond portfolio for every 100 basis point change in the interest rates, this is referred to as DV01 (that is, dollar value per 01). Often denoted as 100 basis points (bps), 0.01 is equivalent to 1 percent.
