Answer:
Laurel bond will decrease by 7.72%
Hardy bond will decrease by 15.8%
Explanation:
current bond price $1,000
interest rate 8%
Laurel bond matures in 5 years, 10 semiannual payments
Hardy bonds matures in 16 years, 32 semiannual payments
if market interest increases to 10%
Laurel bond:
$1,000 / (1 + 5%)¹⁰ = $613.91
$40 x 7.7217 (annuity factor, 5%, 10 periods) = $308.87
market price = $922.78
% change = -7.72%
Hardy bond:
$1,000 / (1 + 5%)³² = $209.87
$40 x 15.80268 (annuity factor, 5%, 32 periods) = $632.11
market price = $841.98
% change = -15.8%
Options A. 3000 units per day. B. 5000 units per day. C. 1000 units per day. D. None of the above.
Answer:C. 1000 units per day
Explanation: Flow rate is a manufacturing or production terminology used to describe the amount of a certain raw materials,goods or services that are able to pass through or be able to produce in a given time. It is often measured in Hours or day.
According to the question the amount the machine has to supply for the packaging machine to package per day as finished products is 1000 unit, what is means that the FLOW RATE OF THE MACHINE PROCESS IS 1000 UNITS PER DAY.
This action is a violation of Cost Principle or Historical Cost Concept.
<h3>What is Historical Cost Concept?</h3>
The historical cost principle states that a company or business must account for and record all assets at the original cost or purchase price on their balance sheet and not at its market price.
The historical cost principle forms the foundation for an ongoing trade-off between usefulness and reliability of an asset.
Thus, if the modern enterprises reported all assets in the accounts at current market value. This action is a violation of Cost Principle or Historical Cost Concept.
Learn more about Historical Cost Concept here,
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Answer:
No, we should not buy the stock
Explanation:
The question states that after 55 years, the friend intends to close the company. That implies that after 55 years the value of the purchased share would be $0.
For next 55 years he has promised to pay $9 as a dividend each year.
The share selling price is $124 per share.
To decide whether to buy the share or not, we must first calculate the present value of the dividends to be paid, and then compare that value to the share's selling price and if the present value of the dividends received is greater than the share's sale price then the share will not be purchased.
Dividend per year = $9
Rate of return = 8%
Period = 55 years
Present Value = $9(P/A, 8%, 55)
Present Value = $110.87
The present value of dividends to be received is $110.87
The present value of dividends to be received is less than the selling price of share.
So, we should not buy the stock.
Answer:
A) Q1 = 20 and Q2 = 60
Explanation:
Please find the attached file with the solution.
