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svet-max [94.6K]
4 years ago
14

When it comes to Discounted Cash Flow (DCF) methodologies and bonds, which of the following is TRUE?

Business
1 answer:
vodomira [7]4 years ago
8 0

Answer:

[B] Using discounting, we can figure out the NPV of a bond

Explanation:

First, a similarity between Discounted Cash Flow (DCF) and Net Present Value (NPV) that is crucial to answering this question is their reliance on discounted future cash flows in determining the present value of a project.

Although, the NPC and the DCF are crucial in decision making about a future project or investment, the difference is that DCF is useful in analyzing the present value of projects future cash flow while, NPV is interested in calculating the expected net returns in the future on an investment minus the startup costs.

Since a bond is an investment, Discounting and NPV can be used to determine the present/today's value of the future returns of the bond.

Therefore, it stands to reason that the price of a bond is not entirely dependent upon the bond's NPV and at the same time the price of a bond is not entirely unrelated to the bond's NPV. NPV uses the price of the bond among other inputs such as interest and years involved to determine the present value of the future returns on the bond.

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In fiscal 2016, Microsoft Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15%. The 2016 in
m_a_m_a [10]

Answer: $19,687 million

Explanation:

From the question, we are informed that Microsoft Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15% and that the 2016 income statement reported income tax expense of $2,953 million.

The amount reported by Microsoft as income before income tax expense that year will be calculated as:

= 2,953 million / 15%

= $19,686.67 million

= $19,687 million

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3 years ago
What is the correct entry for a $100 purchase of supplies on credit?
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Answer:c

Explanation:

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3 years ago
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PlastiPharm produces a foundational product that sits on a shelf until it is needed and added to another product. In reviewing t
Alexxx [7]

PlastiPharm would want to perform the additional testing because:

  • The additional testing helps the company as it strives for perfection in its products and helps avoid future problems by reducing waste (defective parts). (Option C)
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Rigorous testing is usually carried out by companies to ensure that defects and hazards are detected before the products are sent out into the market.

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2 years ago
Match the accounting terminology to the definitions (Click the icon to view the definitions.)
Volgvan

Answer:

a. Accounting.

b. Certified public accountants.

c. Creditor.

d. Managerial accounting.

e. Certified management accountants.

f. Financial accounting.

Explanation:

1. <u>Accounting</u>: information system that measures business activities, processes that information into reports, and communicates the results to decision makers.

2. <u>Certified public accountants</u>: professional accountants who serve the general public.

3. <u>Creditor</u>: person or business to whom a business owes money.

4. <u>Managerial accounting</u>: field of accounting that focuses on providing information for internal decision makers.

5. <u>Certified management accountants</u>: professionals who work for a single company.

6. <u>Financial accounting</u>: field of accounting that focuses on providing information for external decision makers.

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3 years ago
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wlad13 [49]

The results of a partial least squares structural equation modeling analysis imply that aspects of the stadium, club management, and the fan-based support for the club are the most important determinants of fan satisfaction.

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