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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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Janelle Heinke, the owner of Ha'Peppas!, is considering a new oven in which to bake the firm's signature dish, vegetarian pizza.
NikAS [45]

Answer:

a) Oven A  = 1,667; Oven B = 2,353 pizzas.

b) Oven A

c) Oven A

d) 13,334 pizzas

Explanation:

Since nothing was mentioned regarding her time availability, the capacity of each oven will not be taken into account.

The income equation for ovens A and B, respectively, are:

A=(14-2)x-20,000\\B=(14-1.25)x-30,000

Where 'x' is the number of pizzas sold.

a) The break-even occurs when income is zero:

A=0=(14-2)x-20,000\\x_A=1,666.66\\B=(14-1.25)x-30,000\\x_B=2,352.94

Rounding up to the next whole pizza, the break-even for oven A is 1,667 pizzas and for oven B it is 2,353 pizzas.

b) For x = 9,000:

A=(14-2)*9,000-20,000\\A=\$88,000\\B=(14-1.25)*9,000-30,000\\B=\$84,750

Income is greater with oven A, so Janelle should use oven A.

c) For x = 12,000

A=(14-2)*12,000-20,000\\A=\$124,000\\B=(14-1.25)*12,000-30,000\\B=\$123,000

Income is greater with oven A, so Janelle should use oven A.

d) She should switch ovens at the value for 'x' that causes B to be greater than A:

A

Rounding up to the next whole pizza, she should switch ovens at a volume of 13,334 pizzas.

7 0
3 years ago
Economic profits are:a.less than accounting profits if implicit costs are greater than zero.b.less than accounting profits even
Lady bird [3.3K]

Answer:

option (a) is correct.

Explanation:

Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.

Whereas the accounting profits takes into the effect of explicit costs only.

Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.

Explicit costs refers to the costs that are incurred for operating or running a business.  

Accounting profit = Total revenue - Explicit costs

Economic profit = Total revenue - Explicit costs - Implicit costs

Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.

5 0
2 years ago
Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance. The actual price
lisov135 [29]

Answer:

3,500 pounds

Explanation:

By applying the below formula we get:

AQ(AP-SP)

USD 5,250 (unfavorable price variance )

USD 5,250/(AP - SP) = AQ

So,

USD 5,250/(USD 56.50 - USD 55.00)

= 3,500

4 0
2 years ago
Whenever Congress has a perceived need for ongoing control of an economic activity, it has tended to create a a. regulatory agen
RUDIKE [14]

Whenever Congress has a perceived need for ongoing control of economic activity, it has tended to create a cabinet department.

The Vice President and the secretaries of agriculture, commerce, defense, education, energy, health and human services, homeland security, housing and urban development, interior, labor, state, transportation, and veterans affairs make up the cabinet. Cabinets come in three varieties: inset, full overlay, and partial overlay. Each phrase refers to the way a cabinet door or drawer rests against or inside a cabinet frame. The three varieties of cabinets also stand for various price ranges and fashion trends. Such a division is frequently referred to as the Prime Minister's Office. Various other nations have cabinet offices.

The Prime Minister's Office is a division of the Cabinet Office in the United Kingdom; a similar division exists in Australia and New Zealand.

Learn more about Congress here: brainly.com/question/491441

#SPJ4

7 0
1 year ago
You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx
WINSTONCH [101]

Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.

Explanation:

The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.

Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.

3 0
2 years ago
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