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densk [106]
3 years ago
12

The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one o

f the following effects on this bond?
a. increase the coupon rate.
b. decrease the coupon rate.
c. increase the market price.
d. decrease the market price.
e. increase the time period.
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer:

The answer is D.

Explanation:

An increase in the market rate of interest of a bond will decrease the market price of the bond. Market rate of interest of a bond is inversely related to the market price of the bond.

For example, A bonds is issued with a higher interest rate, the price of existing bonds will fall because the demand for this bond falls.

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If the price of imports rose, caused by a change in the value
Alenkasestr [34]
D is the answer to your question
7 0
3 years ago
Abbie Marson is the sole owner and operator of Great Plains Company. As of the end of its accounting period, December 31, Year 1
Allisa [31]

Answer:

b. $103,345

Explanation:

Assets = Liabilities + Owner's Equity

Owner's Equity (Year 1) = $908,100 - $267,845

                                       = $640,255

Owner's Equity (Year 2) = $980,279 - $233,892

                                        = $746,387

increase in Owner's Equity = Owner's Equity (Year 2) - Owner's Equity (Year 1)  

                                             = $746,387 - $640,255

                                             = $106,132

Net income during Year 2 = Increase in Owner's Equity - Additional investment + Withdrawals

                                            = $106,132 - $28,658 + $25,871

                                            = $103,345

Therefore, the amount of net income during Year 2 is $103.345.

7 0
3 years ago
CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
UkoKoshka [18]

Answer:

The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

Explanation:

We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.

Using the CAPM we can calculate the required rate of return as,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on Market

So,

r = 0.04 + 0.4 * (0.11 - 0.04)

r = 0.068 or 6.8%

As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.

The present value of a perpetuity is calculated as follows,

Present Value of perpetuity = Cash Flow / r

Present value of perpetuity = 10000 / 0.068

Present value of perpetuity = $147058.8235

So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

3 0
3 years ago
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $24,000. On the date of delivery, January 2,
oksian1 [2.3K]

Answer:

Explanation:

1.

January 1 Assets - no effect; Liabilities - no effect; Stockholder's equity - no effect

January 2 Assets: Cash -$8000; Equipment + $24000

Liabilities: Short term note payable +$16000

January 3 Assets: Cash -$700; Equipment +$700

January 5 Assets: Cash -$2500; Equipment +$2500

July 1 Assets: Cash -$16720; Liabilities: Short term note payable - $16,000

Stockholders equity - $720

*(24,000-8,000)*0.09*6/12 = $720

2. Acquisition cost of the machine:

Cash paid $8,000

Note payable with supplier $16,000

Freight costs $700

Installation costs $2,500

Acquisition cost $27,200

3. Depreciation(2013) = ($27,200 - residual value of $3,200) *1/10= $24,000/10 = $2400

5. Equipment cost = $27,200

Less: Depreciation [$2400*2] $4800

net book value of the machine at the end of 2014 $22,400

6 0
3 years ago
Read 2 more answers
price quantity total cost $10 40 $374 $10 41 $376 $10 42 $360 $10 43 $365 $10 44 $390 $10 45 $400 $10 46 $412 $10 47 $425 refer
MrRa [10]

The firm's MRP when it produces 44 units of output (from top to bottom) MRP, Regulated: 200, 160, 120, 80, 40.

<h3>What is output?</h3>
  • Output is the quantity of goods or services produced in a given period of time.
  • For a firm that produces a good, the output may simply be the number of units of that good produced each period.
  • Months or Years in production.
  • Input is the process of taking in something.
  • For example,  a company receives inputs when it takes  raw materials to make a final product.
  • Output is the complete opposite as it is the process of sending something.
  • Service is the productive outcome of  marketing channels that consumers value and desire.
  • By identifying the services to offer for each  target buyer segment, marketers can optimize their sales strategy for each key segment.

To learn more about output from the given link :

brainly.com/question/13736104

#SPJ4

6 0
1 year ago
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