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algol [13]
4 years ago
5

Gugenheim, Inc., has a bond outstanding with a coupon rate of 5.8 percent and annual payments. The yield to maturity is 7 percen

t and the bond matures in 14 years. What is the market price if the bond has a par value of $2,000?
A. $1,790.11
B. $1,825.91
C. $1,788.00
D. $1,792.86
E. $1,795.22
Business
1 answer:
shusha [124]4 years ago
8 0

Answer:

The market price if the bond has a par value of $2,000 is A. $1,790.11

Explanation:

The Market Price, PV of the Bond can be determined as follows :

PMT = $2,000 × 5.80% = - $116

P/yr = 1

YTM = 7 %

n = 14

Fv = - $2,000

Pv = ?

Using a financial calculator, the Market Price, PV is $1,790.1088 or $1,790.11.

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A company reports the following: Net income $375,000 Preferred dividends 75,000 Average stockholders' equity 2,500,000 Average c
Anit [1.1K]

Answer:

a) The return on stockholders’ equity = 15%

b)  The return on common stockholders’ equity = 16%

Explanation:

a) Return on Stockholders’ Equity = (Net income)/(Average stockholders' equity)

= ($375,000)/$2,500,000

= 15%

b) Return on Common Stockholders’ Equity = (Net income - Preferred dividends) /(Average return on common stockholders' equity)

= ($375,000 - $75,000) / $1,875,000

= 16%

7 0
3 years ago
1. how many members participate in h&m’s loyalty program worldwide?
amm1812

Answer:

H&M now has over 100 million members.

Explanation:

hope it can help

8 0
3 years ago
Monte Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been coll
Iteru [2.4K]

Answer and Explanation:

The computation is shown below:

1. The standard direct labor hours per brake repairs are shown below:

Actual time spent               5  hours

Setup and downtime (5 hours × 11%) 0.55

Cleanup and rest periods (5 hours × 27%) 1.35

Standard direct labor hours per brake repair 6.9

2. For standard direct labor hourly rate

Wage rate per hour $10

Payroll Taxes ($10 × 10%) $1

Fringe Benefits ($10 × 25%) $2.5

Standard direct labor hourly rate $13.5

3. For the standard direct labor cost per brake repair

= 6.9 hours × $13.5

= $93.50

5 0
3 years ago
All of the following are true regarding traditional manufacturing except a.traditional manufacturing practices tolerate defects.
maksim [4K]

Answer: c.traditional manufacturing practices decrease lead time to protect against uncertainty.

Explanation:

The traditional manufacturing practices tolerate defects and also increase inventory to protect against process problems.

It should also be noted that traditional manufacturing practices emphasize product oriented layout.

The option that traditional manufacturing practices decrease lead time to protect against uncertainty is false.

5 0
3 years ago
Elvin, a manager at Humble Bee Cereals, is faced with the problem of declining sales. After a thorough examination of the situat
zaharov [31]

Answer: Identify the alternatives.

Explanation:

Elvin is taking the third decision making step which is to identify alternatives. The first alternative in this case is improving the packaging of his products, while the second is offering price discounts.

Decision making involves all the steps required in knowing that a decision ought to be taken, getting the needed information that would inform that decision, and also analyzing alternate steps that could be taken .

Identifying the alternatives involves finding out the various solutions at ones disposal. Elvin identified two alternatives in this instance.

5 0
3 years ago
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