Answer:
$663.5
Explanation:
given that
number of years remaining = 4 years
yield to maturity ratio = 10.8% = 1.108
Par value = $1000
Current yield takes a look at the current price of a bond, instead of looking at it from a face value. That being said, it can be calculated mathematically as
Current yield = 1000 / 1.108^4
Current yield = 1000 / 1.507
Current yield = $663.5
Therefore, the current yield from the question we are given, is found to be $663.5.
I hope that helps
Answer:
Correct option is (a)
Explanation:
Excise tax is an indirect tax which is not imposed on customers directly. Excise tax is imposed on producers or sellers for goods produced and they in turn transfer the burden of tax on customers in the form of higher prices. That is why, it is called indirect tax.
It is usually imposed on those goods such as liquor and tobacco whose consumption the Government needs to decrease. If excise tax is imposed on restaurant meals, then the restaurant will be able to produce and sell less at the same price it was charging earlier. If the restaurant wishes to sell more, then it will have to charge higher price.
The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a motive.
<h3>What is a Motivation?</h3>
This refers to the internal or external drive that makes a person to do something, in hopes of a reward or to escape punishment.
Hence, we can see that based on the drive that is inherent in humans to accomplish a task, this leads them to satisfy their unmet needs and this is known as a motive.
Read more about intrinsic motivation here:
brainly.com/question/15542056
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Answer:
a. 24,000 unfavorable
Explanation:
Quantity Variance = Standard Price ( Actual Quantity - Standard Quantity Allowed)
= $12 per pound (8 lbs.*16,500 lbs-8 lbs.*16,000)
= $ 12 (132,000 lbs-130,000 lbs) = $ 12 (2000)= 24,000 unfavorable
It is unfavorable because the actual quantity used is more than the standard quantity allowed.
Quantity variance is obtained by multiplying the standard price with the difference in the actual quantity used and the standard quantity allowed.
Answer:
Part A:
Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Capital cost higher=0.0775=7.75% higher
Explanation:
Part A:
Those stocks whose beta is higher has higher expected return because the risk is higher in these stocks. Since Alcoa has beta value value of 2.00 which is higher than Hormel foods having beta 0.45, it means Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Difference in beta= Beta of Alcoa-Beta of Hormel
Difference in beta=2-0.45
Difference in beta=1.55
Capital cost higher=Difference in beta*Excess return
Capital cost higher=1.55*5%
Capital cost higher=1.55*0.05
Capital cost higher=0.0775=7.75% higher
