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2 years ago

Other things the same, which bond would you expect to pay the lowest interest rate?

Business

1 answer:

Elis [28]2 years ago

3 0

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

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On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti

shusha [124]

Answer:

Dr. Investments in Associates 250,000

Cr. Cash 500,000

Dr. Cash 10,000

Cr. Investments in Associates 10,000

Dr. Investments in Associates 50,000

Cr. Investment revenue 50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

4 0

3 years ago

Wooten & McMahon Enterprises produces a product with the following per-unit costs: Direct materials $13.00 Direct labor 8.80

vichka [17]

Answer:

COGS= $31,597.5

Explanation:

Giving the following information:

Direct materials $13.00

Direct labor 8.80

Manufacturing overhead 16.50

Last year, Wooten & McMahon Enterprises produced and sold 825 units

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 0 + 13 + 8.8 + 16.5 - 0= $38.3

Total cost of goods manufactured= 825*38.3= $31,597.5

Now, we can calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 0 + 31,597.5 - 0= $31,597.5

8 0

2 years ago

PLEASE HELP QUICK!! What type of strategy is being used by a car rental agency when it describes itself as the only rental compa

Tcecarenko [31]

There are different kinds of marketing strategy. Sales promotion is a type of strategy is being used by a car rental agency when it describes itself as the only rental company with a door-to-door service.

<h3>What is door-to-door promotion? </h3>

Door-to-door is known as a type of technique that is often used for sales, marketing, advertising, etc. This boast the sales of a product or services such as cars.

Tis is when a person or persons walk from the door of one house to the door of another, so as to sell or advertise a product. In the case of the car company, they deliver at home for ease to their customer and drives sales upward.

Learn more about Sales promotion from

brainly.com/question/1312782

5 0

2 years ago

Zeta Co. reported sales revenue of $4,600,000 in its Income Statement for the year ended December 31, 20X1. Additional informati

Black_prince [1.1K]

Answer:

Zeta would have reported 20X1 sales of $4,280,000.

Explanation:

Note: the additional information in the question is correctly represented before answering the question as follows:

12/31/X0 12/31/X1

Accounts receivable $1,000,000 $1,300,000

Allowance for uncollectible accounts (60,000) (110,000)

The explanation of the answer is now given as follows:

Since sales is equal to cash collections under the cash basis of accounting, cash collected on accounts receivable can therefore be calculated as follows:

Ending balance = Beginning balance + Sales − Collections − Write-offs ......... (1)

Where;

Ending balance = $1,300,000

Beginning balance = $1,000,000

Sales = $4,600,000

Collections = ?

Write-offs = $20,000

Substituting the values into equation (1) and solve for collections, we have:

$1,300,000 = $1,000,000 + $4,600,000 − Collections − $20,000

Collections = $1,000,000 + $4,600,000 − $20,000 - $1,300,000

Collections = $4,280,000

Therefore, Zeta would have reported 20X1 sales of $4,280,000.

7 0

2 years ago

At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar

Assoli18 [71]

Answer:

The correct answer is 4.33%(approx)

Explanation:

According to the scenario, the given data are as follows:\

Face value = $1,000

Market price = $1,278.41

Coupon Rate = 11%

So Coupon Payment = $110

Years to maturity = 10 years

So, we can calculate the after tax cost of debt by using following method:

After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)

Where, YTM = $\frac{C + \frac{F - P}{T} }{\frac{F + P}{2} }$

So, by putting the following value, we get

YTM = 0.0721

So by putting the value in formula, we get

After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)

= 4.33% (approx)

6 0

3 years ago