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Oksi-84 [34.3K]
3 years ago
6

Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel

ling for $954. At this price, the bonds yield 6.2 percent. What must the coupon rate be on the bonds

Business
1 answer:
Ulleksa [173]3 years ago
7 0

Answer:

5.52%

Explanation:

For computing the coupon rate we first have to determine the PMT by applying the PMT formula

Given that,  

Present value = $954

Future value = $1,000

Rate of interest = 6.2%

NPER = 9 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $55.18

Now the coupon rate is

= $55.18 ÷ $1,000

= 5.52%

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Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]Riverside Inc. ma
Lyrx [107]

Answer:

64% it's the contribution margin of the company.

Explanation:

To find the contribution margin we need to find the gross profit which is the total sales minus the variable cost of goods, te contribution margin doesn't include the fixed costs only the variable ones.

Income Statement    

Quantities                    400      600              750           1.000  

Sales                      $148,000   $222,000   $277,500   $370,000  

Cost of goods sold     -$54,000  -$81,000         -$101,250  -$135,000  

Contribution Margin  $94,000  $141,000    $176,250   $235,000  

                                       64%       64%                 64%             64%

Fixed Cost                -$60,000  -$60,000   -$60,000  -$60,000  

Total Cost                 -$114,000  -$141,000      -$161,250  -$195,000  

Operating Income          $34,000    $81,000    $116,250   $175,000  

5 0
3 years ago
You describe your interview subject’s perspective on the value of education, and you compare those ideas to the views of other p
defon

Answer:

well... read between linesssss

Explanation:

4 0
2 years ago
Wildhorse Corp. has total current assets of $12,152,000, current liabilities of $5,849,000, and a quick ratio of 0.94. How much
White raven [17]

Answer:

Wildhorse Corp. has inventory of $6,653,940

Explanation:

The quick ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due without needing to sell its inventory or get additional financing. The quick ratio is calculated by the following formula:

Quick ratio = (Cash & equivalents + Short Term investments + Accounts receivable)/Current Liabilities

(Cash & equivalents + Short Term investments + Accounts receivable) = Quick ratio x Current Liabilities = 0.94 x $5,849,000 = $5,498,060

Inventory = Total current assets - (Cash & equivalents + Short Term investments + Accounts receivable) = $12,152,000 - $5,498,060 = $6,653,940

4 0
3 years ago
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n)6% interest rate to invest in the stock market.
elena-14-01-66 [18.8K]

Answer:

D)-26%

Explanation:

The computation of the realized return on your investment is shown below:

= (Rate of return × total investment) - (interest paid)

= (-10% × $20,000) - (6% × $1,000)

= (-$2000 - $600)

= -$2,600

Now  the Rate of return is

=(-$2,600 ÷ $10,000)

= -26%

hence, the realized return on your investment is -26%

Therefore the correct option is D.

3 0
2 years ago
If the variable overhead efficiency variance is $500 unfavorable and the variable overhead spending variance is $100 favorable,
Vera_Pavlovna [14]

Answer:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending varian

Explanation:

Based on the information given in a situation where a variable overhead efficiency variance is UNFAVORABLE it will be DEBITED and variable overhead spending variance that is FAVOURABLE will be CREDITED.

Therefore the journal entry will include a:

a. Debit to variable overhead efficiency variance

d. Credit to variable overhead spending Variance

7 0
2 years ago
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