Answer:
<em>15,101.15 shares</em>
Explanation:
<em>Northwestern Lumber products has =17,500 shares of stock</em>
<em>The Manager Patricia considers issuing $135,000 of debt, at an interest rate of 6.6%</em>
<em>Let us find how many shares of stock will be outstanding once the debt is issued,</em>
<em>Given that </em>
<em>$65,000/17,500 = ($65,000 − 135,000(.066))/X
</em>
<em>Then X = 15,101.15 shares</em>
Answer:
the current yield on the bond is lower now than when the bond was originally issued.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.
Answer:
$52,285
Explanation:
The computation of the total manufacturing cost assigned to Job P is shown below:-
Total manufacturing cost = Direct material + Direct labor + Manufacturing overhead applied
= $13,000 + $21,000 + (2,300 × $7.95)
= $13,000 + $21,000 + $18,285
= $52,285
Therefore for computing the total manufacturing cost assigned to Job P we simply applied the above formula.
Answer:
<u>Predatory pricing</u>
Explanation:
A "predator" refers to an animal who survives by "preying" on other animals.
Predatory pricing in a similar sense refers to that form of excessively low pricing which in a way consumes other firms by taking away their share of industry revenues. Such form of pricing is considered illegal and is against healthy competition.
Such pricing eliminates competitors from the market and gradually leads to emergence of a monopoly i.e supremacy of a single firm in the whole industry and thus considered an illegal practice.
In the given case, the retail chain can be alleged to have followed predatory pricing which is substantiated by the fact that it cuts it's prices excessively i.e even below cost , thereby forcing smaller companies to exit the industry.
Answer:
(a) $33750000 (b) $11250000 (c) $22500000
Explanation:
Solution
(a) How much would Ziegler Inc. total income of operating increase.
Now,
Units * (Cost of purchased from outside supplier - Variable cost)
Thus,
75000 * ($1350 - $900) = $33750000
(b) How much would the Instrument Division's operating income increase
Now,
The Units * (Cost of purchased from outside supplier - Transfer Price)
So,
75000 units * ($1350 - $1200) = $11250000
(C) How much would the Components Division's operating income increase?
Now,
Units * (Transfer Price - Variable cost)
75000 units * ($1200 - $900) = $22500000
