Answer:
$1,073.60
Explanation:
bond's current price = PV of face value + PV of coupons
maturity = 10 years
face value = $1,000
coupon rate = 7% annual
market rate = 6%
PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39
PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21
market value at issue date = $558.39 + $515.21 = $1,073.60
since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.
Answer: initial principal
Explanation:
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Ray is a shareholder of a small company. When the director falls to undertake an action it falls under derivative suit.
Explanation:
- Derivative suit is referred to as a law suit that is brought by the shareholder in behalf of the company against the third party.
- If in a company the employees, the directors as well as the officers are not ready to file a complain against the third party then the shareholder has the right to file a complaint against the third party.
- Derivative suit is normally filed by the shareholder when there is a mismanagement in the company. To stop the illegal work this action is being taken.
Answer:
ending work in process and the cost of units transferred out.
Explanation:
In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the ending work in process and the cost of units transferred out.
The cost reconciliation schedule gives the relationship between total costs accounted for and total costs to be accounted for.
When the total costs accounted for equal the total costs to be accounted for, this is a cost reconciliation schedule.
Answer:
Incremental loss of Spock = $19,800
Incremental profit of Uhura = $12,300
Incremental profit of Sulu = $94,200
Explanation:
Note: See the attached excel for the determination the incremental profit or loss that each of the three joint products.
In the attached excl file, the following formulae are used:
a. Incremental sales value = Sales value of processed product - Sales value at split off point
b. Incremental profit (loss) = Incremental sales value - Costs to process further
