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Alex73 [517]
3 years ago
6

You have a bond that entitles you to a one-time payment of $10,000 one year from now. The interest rate is 10 percent per year.

How much is the bond worth today?
Business
1 answer:
nekit [7.7K]3 years ago
3 0

Answer:

$9,090.91

Explanation:

The computation of today price is shown below:

Present value = One time payment × (1 + interest rate)^ number of years

                       = $10,000 × (1 + 0.10)^1

                       = $10,000 × 0.909090

                       = $9,090.91

Simply we determine the discount factor and then multiplied it with the one time payment so that estimated value can come

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How does a tariff impact a business exporting goods
ivolga24 [154]

Answer:

A tariff has a postive impact when it comes to safeguarding and having an income

Explanation:

A tariff is a tax put on imported or exported goods to protect the goods and earn money. This can be used as a source of income as many states in the US do so.

6 0
3 years ago
Read 2 more answers
Find the time required for an investment of 5000 dollars to grow to 8400 dollars at an interest rate of 5.8 percent per year, co
dimulka [17.4K]

Answer:

It will take 464 weeks.

Explanation:

Giving the following information:

Future value (FV)= $8,400

Present value (PV)= $5,000

Interest rate (i)= 0.058/52= 0.00112

<u>To calculate the number of weeks required to reach the objective, we need to use the following formula:</u>

n= ln(FV/PV) / ln(1+i)  

n= ln(8,400/5,000) / ln(1.00112)

n= 463.47 = 646

4 0
3 years ago
Companies HD and LD have the same sales, tax rate, interest rate and their debt, total assets, and basic earning power. Both com
stiks02 [169]

Answer:

A) company HD pays less in Tax

Explanation:

Because interest is deducted before tax in income statement. Higher interest means less Earning before tax, and less amount of Tax be deducted.

HD and LD both have same Earning before interest and tax.

Let suppose both have  EBIT of $1000,

Not HD has interest expense of 150, and LD has interest expense of $100

Now HD Earning before tax would be 850, and LD EBT would be 900.

Let's say tax is 40%

so,

HD tax would be 850*0.4=340

LD tax would be 900*0.4=360

So, HD pays higher interest, it benefit company in paying lower tax amount. bacause interest is tax saving.

HD saves $20 in this hypothetical example.

3 0
3 years ago
Duane is reviewing two candidates for a potential promotion to sales manager. The first is Kate. Kate has a stellar sales record
ExtremeBDS [4]

Answer:

In Kate's case, Horn effect bias is applied

In Miguel's case, Halo effect bias  is applied

Explanation:

As per analysis Duane has implied Horn effect towards first candidate, Kate. Authorities who lodge such persona appraise few alternatives and consider limited information while taking any decision. They are intuitive and impulsive, do not find it important to consult details and may use a few inputs to cognitive process and idea while taking decisions.  In this case, just a few recent occasions of tardy to work are costed more than three years efforts to Kate.

As per scenario of Miguel, Duane is exhibiting Halo effect, despite the fact, that Kate has the high performance rate and has earned high marks from her teammates. Duane is sure implying favoritism over rationalism and cognitive behavior in favor of Miguel. He is ignorance towards the facts highlights that there was no complete thought process in his decision, for him being graduated from Lorton University was the ultimate hail. The affinity bias occurs when hiring manager prefer the candidate with some linkage to like which school they went to. Meanwhile they forgo to undertake the details about a particular candidate.  

6 0
3 years ago
Read 2 more answers
Ramirez Corporation sells two types of computer hard drives. The sales mix in terms of units is 30% (Q-Drive) and 70% (Q-Drive P
Citrus2011 [14]

Answer:

The weighted average unit contribution is $81  per unit.

Explanation:

The contribution per unit is the amount each unit contributes to covering the fixed costs. It is calculated by deducting the variable cost per unit from the selling price per unit.

The weighted average unit contribution is used when there are more than one product that a company produces and is used in calculating the overall or composite break even point. The weighted average unit contribution is the overall unit contribution for all of the products of the company according to their weights in the sales mix.

For a company that produces two products,

Weighted average unit contribution = Contribution per unit of Product A * Weight of Product A in sales mix + Contribution per unit of Product B * Weight of Product B is sales mix

Weighted average unit contribution = (150 - 90) * 0.3  +  (195 - 105) * 0.7

Weighted average unit contribution = $81 per unit

6 0
3 years ago
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