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Nastasia [14]
3 years ago
7

Excey Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.5

5 percent. How many years do these bonds have left until they mature?

Business
1 answer:
xeze [42]3 years ago
7 0

Answer:

11.057 years

Explanation:

For computing the number of years we need to apply the NPER formula i.e to be represented in the attachment below:

Given that,  

Present value = $1,000 × 8% ÷ 7.55% = $1,059.60

Assuming Future value = $1,000

Rate of interest = 7.2%

PMT = $1,000 × 8% = $80

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the number of years is 11.057 years

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2. An A firm has sales of $10 million, variable costs of $4 million, fixed expenses of $1.5 million, interest costs of $2 millio
tankabanditka [31]

Answer:

A) DOL = 1.33 times; DFL = 1.80 times; and DCL = 2.4 times

B) Next years expected Earnings before interest and tax = $5.5 million; and Net years expected net income = $2.45 million

C) Next years expected Earnings before interest and tax = $2.5 million; and Net years expected net income = $0.35 million

Explanation:

Note: This platform did allow the explanation to be saved here as it was claiming it contains swearwords. Please, see the attached pdf file for the full answer and explanation.

Download pdf
6 0
2 years ago
Lawrence Reed in his article "The Role of Incentive" states that the best way to curb pollution and misuse of resources is to?
katovenus [111]

Answer:

Like the title of the article states, all economy relayed choices are the results of an incentive or disincentive a potential polluter faces. He gave the example of the Lake Erie, stating that is highly reasonable (although highly unethical) it is polluted, as it is financially efficient to simply dump garbage in the lake, rather than invest in a recycling or waste management system. He also added, that since the lake is a public good, no one will look at the pollution as a serious concern, since it isn't owned by anybody.

All of this implies that a structured, incentive system has to be created in order to curb pollution.

7 0
3 years ago
Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.
ladessa [460]

Answer:

Interest expense --------$1,500

Interest payable-------------- $1,500

Explanation:

Given the following ;

Amount of note signed = $75,000

Annual interest rate = 12% = 0.12

Date signed = November 1

Calculate interest expense to be made in the adjusting entry by December 31 :

NOTE: No entries have been made previously for the interest expense

Monthly Interest = (Amount × rate) ÷ 12

Monthly interest = ($75,000 × 0.12) ÷ 12

Monthly interest = $9000 ÷ 12 = $750

November 1 to December 31 = 2 months

$750 × 2 = $1500

Interest expense = $1,500

3 0
3 years ago
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
pishuonlain [190]

Answer:

See explanation section

Explanation:

See the images to get the answer

4 0
3 years ago
The team members of the technical team in Wescrult Inc. are working on a crucial project. Their previous manager assigned respon
konstantin123 [22]

Answer: Controlling

Explanation: Controlling is the function of management that sets the standards for the performance, then compares the actual performance with the standards set and take corrective action if there comes any discrepancy.

In the given case, Wendy is monitoring the tasks performed by others and is also taking corrective actions. Thus, we can conclude that wendy is  performing controlling function.

3 0
3 years ago
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