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mixer [17]
3 years ago
7

Courier Logistics Corp. will issue $2,400,000 in 8-year bonds that pay 5% annually. The market rate for bonds of similar riskine

ss and maturity is 4%. How much cash will Courier Logistics Corp. receive from this bond issuance?
a. $2,529,241.
b. $2,374,124.
c. $2,561,585.
d. $2,400,000.
Business
1 answer:
djverab [1.8K]3 years ago
8 0

Answer:

Courier Logistics Corp will receive c. $2,561,585 from this bond issuance

Explanation:

Note that the Yield to Maturity is <u>less</u> than the Coupon Rate, therefore the bond is trading at a <em>Premium</em> (price will be greater than the par value)

The price of the bond, PV is calculated as follows :

PMT = $2,400,000 × 5% = $120,000

P/YR = 1

N = 8

FV = $2,400,000

YTM = 4%

PV= ?

Using a Financial Calculator, the price of the bond, PV is $2,561,585.87 or $2,561,585.

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Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on whic
Kay [80]

Answer:

≈ 9644 quantity of card

Explanation:

given data:

n = 4 regions/areas

mean demand = 2300

standard deviation = 200

cost of card (c) = $0.5

selling price (p) = $3.75

salvage value of card ( v ) = $ 0

The optimal production quantity for the card can be calculated using this formula below

= <em>u</em> + z (0.8667  ) * б

= 9200  +  1.110926 * 400

≈ 9644 quantity of card

First we have to find <em>u</em>

u = n * mean demand

 = 4 * 2300 = 9200

next we find the value of Z

Z = ( \frac{p-c}{p-v} )

   = ( 3.75 - 0.5 ) / 3.75   = 0.8667

Z( 0.8667 ) = 1.110926 ( using  excel formula : NORMSINV (0.8667 )

next we find б

б = 200\sqrt{n} = 400

7 0
3 years ago
Samantha is preparing a presentation about using waste to create soil compost. She plans to include a video that demonstrates co
Morgarella [4.7K]

Answer:

I'm thinking C

Explanation:

This seems really written in a smart aleck way. It could be D also though.

8 0
3 years ago
Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who is the best person to help Cyn
Volgvan

A real estate attorney is the best person to help Cynthia prepare a lease option.

<h3>Who is the optionee in an option contract?</h3>
  • The seller is the optionor and the buyer is the optionee in an option contract.
  • It is a unilateral contract since the buyer has the option to purchase while the seller is required to sell.

<h3>What is an option to buy agreement?</h3>
  • An option-to-purchase agreement is a contract that grants a tenant or investor the opportunity to buy real estate in the future in exchange for a fee.

<h3>What does first option to buy mean?</h3>
  • When an owner intends to sell a property, this clause, also known as a right of first refusal or first right to purchase, compels the owner to provide the holder the first opportunity to purchase the property.
  • The holder cannot compel the owner to sell, unlike the option to purchase.

<h3>What is purchase option?</h3>
  • A purchase option is the freedom to buy, rent, or lease real estate or other property interests.

Learn more about Cynthia  here:

brainly.com/question/11916034

#SPJ4

5 0
2 years ago
Susan wishes to buy gasoline and have her car washed.She finds that if she buys 9 gallons of gasoline at $2 per gallon,the car w
3241004551 [841]

Answer:

$0.50

Explanation:

Marginal cost is the additional expense associated with consuming, selling, or producing one extra unit. For Susan, the marginal cost is the extra cost incurred by purchasing the 10th  gallon of gasoline.

To obtain the marginal cost:

The cost of 9 gallons plus cash wash

=(9 x $2) + $1.50= $19.50

cost of 10 gallons plus cash wash

=(10 x $2) cash wash is free= $ 20

The extra cost associated with the additional unit (marginal cost)

= $ 20- $ 19.50

=$0.50

3 0
3 years ago
A firm is must choose to buy the GSU-3300 or the UGA-3000. Both machines make the firm’s production process more efficient which
Alexeev081 [22]

Answer :

The equivalent annual annuity of GSU-3300 = 6,520.30

Explanation :

The computation of the equivalent annual annuity of the GSU -3,300 is shown below:

As per the data given in the question,

For GSU-3300, Cash flow =$25,010

Time = 8 years

Cost = $99,984

For UGA-3300, Cash flow = $28,975

Time = 9 years

Cost $123,069

Based on this,

The equivalent annual annuity of GSU-3300 is

= -$99,984 × 9.63% ÷ {1 -1 ÷ (1 + 9.63%)^8} + $25,010

= 6,520.299

= 6,520.30

7 0
3 years ago
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