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balu736 [363]
3 years ago
7

Sunset Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The yield to maturity is 5.1 per

cent and the bond matures in 20 years. What is the market price if the bond has a par value of $2,000
Business
1 answer:
borishaifa [10]3 years ago
6 0

Answer:

$2,189.76

Explanation:

<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>

<em>The price of the bond can be calculated as follows:</em>

<em>Step 1</em>

<em>PV of interest payment</em>

Interest payment =( 5.94%× $2000)/2

= $59.4

Semi annual yield = 5.1/2 = 2.6%

PV of interest payment

= 59.4× (1-(1.026)^(-20×2))/0.026)

= 59.4 × 24.41400537

=<em>$ 1,450.19</em>

Step 2

<em>PV of  redemption value</em>

=  2,000 × (1+0.051)^(-20)

= 2,000 × 0.369781925

=   739.56

Step 3

<em>Price of bond  </em>

= $1,450.19 + $739.56  

=$2,189.76

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Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high
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Answer:

                                                           Large    Medium    Small

Unit selling price                                 $184      $160       $100

Unit variable cost                                  130        120          76

Unit contribution margin                     $54        $40        $24

Autoclave hours per unit                       3            2              1

Total process hours per unit                 5            4              2

Budgeted units of production           3,000     3,000    3,000

a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

  • total contribution margin for large safety plate glasses = $54 x 3,000 = $162,000
  • total contribution margin for medium safety plate glasses = $40 x 3,000 = $120,000
  • total contribution margin for small safety plate glasses = $24 x 3,000 = $72,000

b. Prepare an analysis showing which product is the most profitable per bottleneck hour.

contribution margin per autoclave hour:

  • large safety plate = $54 / 3 = $18 per autoclave hour
  • medium safety plate = $40 / 2 = $20 per autoclave hour
  • small safety plate = $24 / 1 = $24 per autoclave hour ⇒ MOST PROFITABLE PRODUCT PER AUTOCLAVE HOUR (BOTTLENECK)

7 0
2 years ago
What's your fav video game and why
Natali [406]

Answer:

Any game with Yoshi in it or Danganronpa.

  • Any yoshi game because I love Yoshi.
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8 0
2 years ago
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_____ involves comparing the percentage of minorities and the percentage of women employed in each job category to the availabil
lisov135 [29]

Answer:

The correct answer is letter "A": Job group analysis.

Explanation:

Job group analysis is the evaluation carried out by a company to determine the amount of workforce available and the number of job positions required to cover the operations expected. Besides, it considers the diversity present among existing employees based on <em>age, race, gender or ethnicity</em> to mention a few examples.

3 0
2 years ago
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On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
BlackZzzverrR [31]

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

6 0
3 years ago
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evablogger [386]

Answer:

Explanation:

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Budgeted indirect cost rate= Budgeted indirect cost/ professional labor hours = 2475000/45000= $55

Job R:

Direct cost:

Job R - 120H*65=7800

Add: Indirect cost:

120H* 55=6600

TOTAL R JOB=14400

Job P:

DC:

Job P - 160H*65=10400

IC:

160H*55=8800

TOTAL P JOB=19200

8 0
3 years ago
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