Answer:
Explanation:
a. If you believe that the term structure next year will be the same as today’s, calculate the return on (i) the 1-year zero and (ii) the 4-year zero.
b. Which bond provides a greater expected 1-year return? O 1-year zero-coupon bond O 4-year zero-coupon bond
The return on one year bond is = 5.2%
The price of 4 year bond today
Price of 4 year bond today = 807.22
If yield curves is unchanged, the bond will have 3-year maturity and price will be
If yield curves is unchanged, the bond will have 3-year maturity and price will be = 854.04
Return
Return = 5.8%
The longer term bond has given the higher return in this case at it's YTM fell during the holding period(4 -year)
Answer:
The correct answer is letter "A": operating activities.
Explanation:
Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.
When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.
Answer: Personal comparison
Explanation:
When it comes to the Control Process, entities are allowed to use several comparison methods when comparing task results with objectives.
These include:
- the Historical method where current performance is compared to past performance
- the Relative comparison method where the organization's performance is compared against a benchmark of other organizations in the industry.
- Engineering comparison where schedules are used to ensure that activities finish on time.
Personal comparison is not an acceptable method.
Answer:
The labor productivity for Deluxe and Limited cars are as follows:
Units/Hour dollars
Deluxe Car 0.13 103.64
Limited Car 0.21 156.54
Explanation:
It is noteworthy that labor productivity in terms of units/hour does not put into consideration quality of product, selling prices and skill level of the manufacturing workers. It would extremely difficult for supervisors to find out the workers that are better in terms of unit/hour.
Find attached spreadsheet with detailed calculation and formulas used.
Answer:
$3,400
Explanation:
The total amount of estimated manufacturing overhead is calculated as;
= Salary of production supervisor + Indirect materials + Rent on factory equipment
Given that;
Salary of production supervisor = $2,000
Indirect materials = $400
Rent on factory equipment = $1,000
Therefore, Estimated manufacturing overhead ;
= $2,000 + $400 + $1,000
= $3,400
