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irina [24]
4 years ago
9

The Petit Chef Co. has 7 percent coupon bonds on the market with 9 years left to maturity. The bonds make annual payments and ha

ve a par value of $1,000. If the bonds currently sell for $1,038.50, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Business
1 answer:
uysha [10]4 years ago
6 0

Answer:

The yield to maturity is 6.45%.

Explanation:

Yield to Maturity (YTM) is the long term yield on the bond based on the assumption that the bond is held till maturity. The Yield to Maturity is calculated using the formula as shown in the attachment,

The coupon payment on bonds is = 1000 * 0.07 = 70

YTM = ( 70 + (1000 - 1038.5)/9 )  /  ((1000 + 1038.5) / 2)

YTM = 0.06448 or 6.448% rounded off to 6.45%

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The three (3) key components in creating a financial plan are: Select one: a. The sales forecast, proforma financial statement a
atroni [7]

Answer:

The correct answer is the option D: Free cash flow, economic value added, sales forecast.

Explanation:

To begin with, in the field of business, a financial plan consists of an strategy that the managers of the company must follow in order to have every money aspects established and on guard of what can happen straight ahead regarding the conditions and circumstances of the organization's environment and context as well. Therefore that a financial plan's major three components are the cash flow statement where the managers must see how the money is flowing in and out, also the sales forecast that will encourage the company itself to try to achieve that expectations and the economic value added could also be very important when it comes to matters of money and how the business will value their products for sale according to the costs structure that the enterprise has.  

7 0
3 years ago
Using the data in EA-3, assume that Slick Rocks management purchased the Sandstone stock for the trading securities portfolio in
vitfil [10]

The journal entry for the purchase of the stock for the trading securities portfolio is that Securities account debited and bank account credited.

Given that Slick Rocks management purchased the Sandstone stock for the trading securities portfolio instead of the available-for-sale securities portfolio.

We are required to form the journal entry that are required by the facts presented in the case.

A journal is basically a detailed account which records all the financial transactions of a business to be used for the future reconciling of accounts.

The journal entry will be as under:

Securities account debited and bank account credited. If we know that which security is being purchased then we can name that securities also.

Hence the journal entry for the purchase of the stock for the trading securities portfolio is that Securities account debited and bank account credited.

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6 0
2 years ago
If a nation has a comparative disadvantage in the production of some commodity: Group of answer choices it cannot gain from inte
vazorg [7]

Answer:

it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.

Explanation:

A country has comparative disadvantage in production if it produces at a higher opportunity cost when compared to other countries.

The country with a  comparative disadvantage can gain from trade by trading the good with a country that has  comparative advantage in the production of that good. i.e. the country produces at a lower opportunity cost

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.  

for country A,  

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,  

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country B has a comparative disadvantage in the production of beans and country A has a comparative disadvantage in the production of rice

Country B should buy beans from A and A should buy rice from B

7 0
3 years ago
How much of the federal government's income comes from individual income tax? (1 point)
Lilit [14]
The right answer for the question that is being asked and shown above is that: "47 percent." the federal government's income comes from individual income tax is that of <span>47 percent. This is the correct answer as far as the federal government's income is concerned.</span>
5 0
3 years ago
Industry value chains Multiple choice question. generally have little effect on the company's cost competitiveness and customer
uysha [10]

Answer:

include both suppliers and forward channel partners.

Explanation:

An industry value chain can be defined as a physical representation of all of the activities and processes undertaken by a company or business firm for the manufacturing of goods and services, especially starting with the purchase of raw materials, manufacturing of finished goods and then ending with the delivery of the finished goods (products) to the market and consumers through a supply chain.

This ultimately implies that, industry value chains include both suppliers and forward channel partners.

In conclusion, an industry value chain should comprise of the margins of suppliers, value-creating activities and processes, costs, and forward channel partners.

6 0
3 years ago
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