The amount that will be received as payment in full by the seller after deducting the return of $250, and applying the 2/10, net/30 terms will be equal to $4,361 on May 4.
<h3>What is
the 2/10, net/30 rule?</h3>
2/10 Net 30 refers back to the change credit offered to a customer for the sale of products or services. 2/10 net 30 approach that if the amount due is paid within 10 days, the customer will experience a 2% discount.
Otherwise, the amount is due in complete within 30 days.
As per the information:
Selling price: $4,700
Discount: 2% (if paid within 10 days of purchase)
returned: $250
The actual amount to be received by the seller:
Hence, The amount that will be received as payment in full by the seller after deducting the return of $250, and applying the 2/10, net/30 rule will be equal to $4,361 on May 4.
learn more about 2/10 Net 30 terms:
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Answer:
YTM = 6.51%
YTC = 6.40%
Explanation:
We need to solve using excel goal seek or bond formulas to generate the yield (interest rate) which matches the future couponb and maturity payment with the current selling price of the bond:
Present value of the coupon
C 40.000 (1,000 x 8% / 2 payment per year)
time 28 (14 years x 2 payment per year)
rate 0.032529972 (generate using goal seek tool)
PV $727.8688
Pv of the maturity (lump sum)
Maturity 1,000.00
time 28.00
rate 0.032529972
PV 408.06
PV c $727.8688
PV m $408.0612
Total $1,135.9300
As this is a semiannual rate we multiply it by 2
0.032529972 x 2 = 0.065059944 = 6.51%
We repeat the procedure with changing the time and end-value to adjust for the callabe conditions:
C 40.000
time 14 (7 years x 2 payment per year)
rate 0.032015131
PV $445.6984
Maturity 1,073.00 (call price)
time 14.00
rate 0.032015131
PV 690.23
PV c $445.6984
PV m $690.2316
Total $1,135.9300
Againg his will be a semiannual rate so we multiply by two:
0.032015131 x 2 = 0.064030263 = 6.40%
Answer:
$124,000 is the correct answer if we use 6% which is the correct question scenario. If we take 7% then its
Explanation:
The cash dividend announced is $160,000. Remember the first payment goes to preferred shareholders and then the amount left would be distributed among the ordinary shareholders.
The dividend share of Preferred shareholders = 6000 shares * $100 par value * 6% fixed rate = $36,000
After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:
Share of Dividend of ordinary shareholders = $160,000 - $36,000
= $124,000
Similarly if we use 7% fixed rate, then
The dividend share of Preferred shareholders = 6000 shares * $100 par value * 7% fixed rate = $42,000
After deducting this amount from the dividend announce will go to ordinary shareholders and is calculated as under:
Share of Dividend of ordinary shareholders = $160,000 - $42,000
= $124,000
Answer:
A) I and II only
Explanation:
Advance decline ratio states the number of companies that have shown positive move visa a visa the number of stocks that have shown negative move
Hence the higher the ratio, the market as a whole is indicated as a stronger market
Rest of the options are indicative of bearish outlook
Answer:
$29,800
Explanation:
Calculation to determine initial cost of the bread machine
INITIAL COST
Purchase Price: $24,500
Freight: $1,450
Installation: $2,900
Testing: $950
Total cost of the bread machine: $29,800
Therefore initial cost of the bread machine is $29,800
