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nekit [7.7K]
3 years ago
5

Moerdyk Corporation’s bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra

te is 5%, based on semiannual compounding. What is the bond’s price?
Business
1 answer:
azamat3 years ago
7 0

Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest   (PVI)

RPV = 1,000 (1+5%)^-15 = $ 481 -A

PVI = 36.25 * Annuity factor  =$ 759 -B

Future Value = A + B = $ 1,276  

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

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Lucie is reviewing a project with an initial cost of $38,700 and cash inflows of $9,800, $16,400, and $21,700 for Years 1 to 3,
Alecsey [184]

Answer:

Results are below.

Explanation:

To determine whether the project should be accepted or not, we need to calculate the net present value. <u>If the NPV is positive, the project should be accepted.</u>

<u>To calculate the NPV, we will use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 9,800/1.0975= 8,929.38

Cf2= 16,400/1.0975^2= 13,615.54

Cf3= 21,700/1.0975^3= 16,415.20

Total= $38,960.12

NPV= -38,700 + 38,960.12

NPV= 260.12

<u>The project is profitable. </u>

5 0
3 years ago
Peters Manufacturing Company has the following data at June 30, 2019:
nignag [31]

Answer:

Gross Profit                      $ 74,000

<u>Cost of Goods sold                                   $ 506,000</u>

Explanation:

Peters Manufacturing Company

Income Statement

June 30, 2019

<u>Sales                                                 $580,000</u>

Total manufacturing costs 430,000

Add Work in process inventory, June 1 18,100

Cost of Goods Available for Manufacturing  548,100

Less Work in process inventory, June 30 30,400

Cost Of Goods Manufactured  517,700

Add Finished goods inventory, June 1 43,500

Cost Of Goods Available for Sale  561,200

Less Finished goods inventory, June 30 55,200

<u>Cost of Goods sold                                   $ 506,000</u>

Gross Profit                      $ 74,000

5 0
3 years ago
When activity-based costing is used to apply overhead to products, support department costs are referred to as Group of answer c
Rainbow [258]

Answer:

Activity-based department costs

Explanation:

Activity Based Costing refers to a method : that allocates the cost of activities in organisation among produced goods & services, in proportion to that activity consumed by each good & service.

The model is  a better representative of particular goods & services production costs, unlike conventional cost methods - that divide the activity cost among each good or service equally. It assigns more indirect (overhead) costs into direct costs compared to Conventional Costing.

So, the approach states that overhead to products, supporting department costs - are referred to as <u>Activity Based</u> Department Costs

3 0
3 years ago
Barney Googal owns a garage and is contemplating purchasing a tire retreading machine for $12,820. After estimating costs and re
UNO [17]

Answer:

the present value is $13,588.97

Explanation:

The computation of the present value of the retreading operation is shown below:

As we know that

Present value = Future value ÷  (1 + rate of interest)^time period

= $2,700 ÷ 1.09^1 + $2,700 ÷ 1.09^2 + $2,700 ÷ 1.09^3 + $2,700 ÷ 1.09^4 + $2,700 ÷ 1.09^5 + $2,700 ÷ 1.09^6 + $2,700 ÷ 1.09^7

= $13,588.97

Hence, the present value is $13,588.97

5 0
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Explain how businesses can use copyright ,patent and trademarks in dealing with piracy
diamong [38]
Businesses use copyright, patents, and trademarks, to keep other companies from taking their idea or product. Copying a trademarked or patent product is illegal. (piracy)
3 0
3 years ago
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