Answer:
Rate of return = 6.64%
Explanation:
Annual coupon rate = 7.5% = 0.075
Face value = 1,000
Coupon payment = 1,000*0.075 = 75
YTM = 8%
Years = 20
Price of the bond = PV(8%, 20, 75, 7.5%)
Price of the bond = $950.91
Rate of return = Selling price + Coupon payment received - Purchase price / Purchase price
Rate of return = $939.05 + $75 - $950.91 / $950.91
Rate of return = $63.14 / $950.91
Rate of return = 0.0663996
Rate of return = 6.64%
Answer:
Explanation:
Goods are tangible items that that can be bought at a price while services is defined as intangible benefits that is provided . However , they both provide value and satisfaction to the buying party
A shirt in the scenario is an example of a good as it was a tangible product that did not perish immediately.
The restaurant experience is a service as she chose to go there in order to sit and relax , in addition to buying the food stuff which could have been bought in a grocery store. The sitting and relaxing was an intangible product that expired (perish) as soon as she left the restaurant which qualifies it as a service
Answer:
The level of sales in units is 7,400
Explanation:
The computation of the level of sales in units is shown below:
= (Fixed cost + target income) ÷ (Contribution margin per unit)
= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)
= $392,200 ÷ $53 per unit
= 7,400 units
The Contribution margin per unit is
= Selling price per unit - variable cost per unit
Henec, the level of sales in units is 7,400
Answer:
d. It will estimate higher residual values for its assets.
Explanation:
The depreciation is calculated on the value of the asset to be depreciated in the life of the asset that is cost - Salvage or residual value.
Thus, when the residual value is high then the amount to be depreciated will be low.
Then no matter whatever the method of depreciation be: the value of depreciation expense in dollars will be ultimately.
This will help in showing the highest earnings whatever the circumstance be.
Thus correct option is D.
