Answer:
Longly will receive $1,817.43 from selling the bond.
Explanation:
As the coupon rate is 8%; we have annual coupon payment = 2,000 x 8% = $160.
The price of the bond Longly will receive is equal to the present value of 20 annual coupon payment plus the present value of $2,000 face value repayment in 20 years time; with the two streams of cash flow discounting at the market rate at the date of issuing 9%; which is calculated as:
[ ( 160/9%) x [ 1 - 1.09^(-20) ] ] + ( 2,000 / 1.09^20 ) = $1,817.43.
So, the answer is $1,817.43.
Answer:
Break-even point (dollars)= $600,000
Explanation:
Giving the following information:
Selling price per unit= $10
Variable costs per unit= $4
Fixed costs= $120,000
Desired profit= $240,000
To determine the sales level to achieve the desired profit, we need to use the break-even point in dollars formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (120,000 + 240,000) / [(10 -4)/10]
Break-even point (dollars)= 360,000/ 0.6
Break-even point (dollars)= $600,000
Answer:
A. Chang has the legal right to sue for damages.
B. Moser cannot get out of the contract due to duress.
Explanation:
Chang has the legal right to sue for damages that occurred due to the accident, this is because it is stated that Moser negligently collided with Chang's car.
Moser cannot get our of the contract due to duress because Chang did threaten to sue Moser for what directly had to do with the incident. If Chang had threatened to sue Moser for something else entirely, then Moser can claim duress. Also, Moser can't claim duress, especially since she had no insurance.
A contract manufacturer ("CM") is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing. In the food business a contract manufacturer is called copacker.
