________ is the process of distributing indirect costs to products. cost allocation job cost recording cost pooling cost tracing

A discount bond is also called a ________ because the owner does not receive periodic payments.

a_sh-v [17]

A discount bond is also called a zero coupon bond because the owner does not receive periodic payments.

A discount bond is a bond that is issued for much less than its par—or face—fee. discount bonds can also be a bond currently trading for less than its face cost inside the secondary market. A bond is considered a deep-cut price bond if it's far bought at a substantially decrease price than the par fee, normally at 20% or more.

A zero-coupon bond is a bond that pays no interest and trades at a reduction to its face price. It is also known as a natural cut price bond or deep cut price bond. U.S. Treasury payments are an example of a 0-coupon bond.

Coupons are the promised hobby payments of a bond, paid periodically till the adulthood date of the bond. The coupon rate determines the quantity of every coupon fee of a bond. The coupon rate, expressed as an APR, is about by using the issuer and said on the bond certificate.

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3 0

9 months ago

There's a large number of bakeries in the United States and each of these bakeries produces similar, but not identical, products

kobusy [5.1K]

Answer:

monopolistic competition

Explanation:

Monopolistic competition -

It refers to a type of competition , where the some sellers sell similar products but exactly the same , is referred to as monopolistic competition .

The goods and services are not exactly the copy of each other , rather are just similar in nature , with similar components .

Hence , from the given scenario of the question ,

The correct answer is monopolistic competition .

8 0

2 years ago

The Magnolia Company's Division A has income from operations of $80,000 and assets of $400,000. The minimum acceptable rate of r

Afina-wow [57]

The residual income for the Division A of Magnolia Company for an income from operations of $80,000 will be $32,000.

<h3>What is residual income?</h3>

Residual Income is the total of total income from operations less the minimum acceptable rate of return on the deployed assets for such operations over a financial period.

Using the above information, it can be ascertained that the residual income will be,

$\rm Residual\ Income = Income\ from\ Operations - Rate\ of\ Return\ x\ Assets\\\rm Residual\ Income = 80000- (12\%\ x\ 400000)\\\\\rm Residual\ Income = \$32,000$

Hence, the residual income will be as computed above.

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8 0

1 year ago

firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each

Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

Common Bonds

Stock

Outstanding shares/bonds 2,000,000 2,000

Market price per unit $2 $1,200

Total market value $4,000,000 $2,400,000

Total value of debt and equity = $6,400,000

Weight 62.5% 37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0

2 years ago

To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False

8090 [49]

Answer:

FALSE

Explanation:

Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a company's sales by its total assets.

To increase sales, management should continue to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.

7 0

2 years ago