Answer:
Price of the Bond is $868.82
Explanation:
Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]
Whereas
C = coupon payment = $110.00 (Par Value x Coupon Rate)
n = number of years = 7
r = market rate, or required yield = 14% = 0.14
P = value at maturity, or par value = $1,000
Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]
Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]
Price of the Bond = $481.0+$387.82
Price of the Bond = $868.82
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The company uses the activity rates to assign overhead costs to products:
Processing customer orders $96.63 per customer order
Assembling products $2.45 per assembly hour
Setting up batches $58.89 per batch
Last year, Product F76D involved 9 customer orders, 436 assembly hours, and 26 batches.
Allocated overhead= 9*96.63 + 436*2.45 + 26*58.89= $3,469.01
Answer:
b. The $80 is a nominal variable. The quantity of shoes is a real variable.
Explanation:
A nominal variable is a variable that hasn't been adjusted for inflation. Prices quoted in the purchase of goods and services are usually nominal variables.
Nominal variable = real variable + inflation rate
Real variable is a variable that has been adjusted for inflation
Real variable = nominal variable - inflation rate.
I hope my answer helps you
Answer:
True
Explanation:
Limited liability - legal liability when the SHAREHOLDERS or founders are liable for the obligations of the company only to the extent of the capital invested in it. We can not say the stakeholders have obligations. The stock holder is the same meaning with shareholder.
The limitation of liability is one of the principles underlying the concept of a legal entity, namely that a legal entity, although an abstraction, actually has a number of features of a real person (i.e. a person), in particular, it is itself capable of having rights and bear obligations, thus limiting the rights and obligations (including liability) of persons who are participants in such a legal entity. Among the various organizational and legal forms of legal entities provided for by the laws of different countries of the world, not everyone provides a limitation of liability to persons standing behind these legal entities. The extent and nature of the limitation of such liability also varies. In some legal systems, limitation of liability is considered as a privilege that is granted to participants in a legal entity in return for fulfilling certain requirements (compliance with corporate procedures, etc.); and in case of non-compliance with these requirements, this privilege may be deemed unreasonable, and the responsibility is transferred to the property of such participants.
The economic meaning of limiting liability is to stimulate the economic activity of citizens and make more active use of investment opportunities. The existence of modern public capital markets (and, above all, exchanges) is not possible without the principle of limited liability.
Answer:
the Net accounts receivables after write off is $104,000
Explanation:
The computation of the net account receivable after write off is shown below:
Net accounts receivables after write off is
= (Account receivable - written off) - (Allowance for doubtful accounts - written off)
= ($120,000 - $1,600) - ($16,000 - $1,600)
= $118,400 - $14,400
= $104,000
hence, the Net accounts receivables after write off is $104,000