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miskamm [114]
2 years ago
15

A $10,000 mortgage bond with a bond interest rate of 12% per year, payable quarterly, was purchased for $8,800. The bond was kep

t until it was due, a total of 5 years. What is correct equation (PWr-PWd=0) to calculate the rate of return "i*" made by the purchaser of the bond?
Business
1 answer:
pshichka [43]2 years ago
7 0

Answer:

-8,800 +300 (P/A, i*,20) +10,000 (P/F, i*,20)=0

Explanation:

Given that

Value of the mortgage bond = $10,000

Interest rate = 12% per year

Purchase value = $8,800

Time period = 5 years

Now the correct equation is

-$8,800 +300 (P/A, i ×,20) +10,000 (P/F, i×,20)=0

The $8,800 represents the purchase value

The 20 represents the 5 years × 4 quarters

Interest = $10,000  × 12% ÷ 4 = $300

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ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consum
viktelen [127]

Answer:

The Total Cost of Inventory is $4,024,000

Explanation:

The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,

Purchase cost = Annual consumption × Cost per unit\

                       = 80,000 × $50

                       = $4,000,000

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (80,000 ÷ 8,000) × $1,200

                       = $12,000

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (8,000 ÷ 2) × 6% × $50

                      = $12,000

Now put these values to the above formula  

So, the value would equal to

= $4,000,000 + $12,000 + $12,000

= $4,024,000

8 0
3 years ago
Ottawa university sold 15,000 season football tickets at $80 each for its six-game home schedule. what entry should be made when
RUDIKE [14]
<span>The total revenue they earned from selling the football tickets is $1,200,000. As a result, they should debit cash for $1,200,000 and credit for unearned revenue for the same amount.</span>
4 0
3 years ago
The Waverly Company has budgeted sales for the year as follows: The ending inventory of finished goods for each quarter should e
MA_775_DIABLO [31]

The question is incomplete. The complete question is as follows,

The Waverly Company has budgeted sales for the year as follows:

Quarter sales in unit

1=12,000

2=14,000

3=18,000

4=16,000

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 3,000 units. Scheduled production for the second quarter (in units) is:

a.17,500 units.

b.16,500 units.

c.15,000 units.

d.13,000 units.

Answer:

Production = 15000 Units

Option C is the correct answer

Explanation:

To calculate the scheduled production for the second quarter, we first need to find the opening and ending inventory for the third quarter. The ending inventory for each quarter will become the opening inventory for next quarter. It is mentioned in the question that the ending inventory in each quarter is equal to 25% of the next quarter's budgeted sales. Then,

Ending Inventory First Quarter = 0.25 * 14000  =  3500 units

Ending Inventory Second Quarter = 0.25 * 18000  =  4500 units

The production of units in second quarter can be calculated as follows,

Budgeted Sales  =  Opening Inventory + Production - Closing Inventory

14000 = 3500 + Production - 4500

14000 + 4500 - 3500 = Production

Production = 15000 Units

5 0
2 years ago
Bauer's Supply Chain Management Student Organization provides networking opportunities and dinner meetings with hiring managers,
givi [52]

Answer:

Bauer SPO

Explanation:

  • Bauer SPO is a primer student organization of the supply chain and management at the university of Houston C.T. Bauer College of Business.
6 0
3 years ago
You purchased GARP stock one year ago at a price of $67.67 per share. Today, you sold your stock and earned a total return of 18
Svetlanka [38]

Answer:

14.48%

Explanation:

The capital gains yield on the investment is increase in share price divided by the initial price paid to acquire the share a year ago.

The total return formula can be used to figure the price the stock was when sold as below:

total return =P1-Po+D/Po

P1 is the current price which is unknown

Po is the initial price of $67.67

total return is 18.79%

D is the dividend of $2.92

0.1879=P1-67.67+2.92/67.67

0.1879*67.67=P1-64.75

12.72=P1-64.75

P1=12.72+64.75

P1=77.47

Capital gains yield=(77.47 -67.67)/67.67=14.48%

7 0
3 years ago
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