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Roman55 [17]
3 years ago
10

Grossnickle Corporation issued 20-year, noncallable, 7.5% annualcouponbonds at their par value of $1,000 one year ago. Today, th

e market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity?
Business
1 answer:
kicyunya [14]3 years ago
4 0

Answer:

current price of the bond is $1,232.15  

Explanation:

given data

time N = 20 year

annual coupon bonds = 7.5%

future value = $1,000

interest rate = 5.5%

NPER = 19 year

solution

we will use here Present value formula to get current price of the bond.

so here PMT will be

PMT = future value × rate

PMT = 1000 × 7.5 %

PMT =  $75

so we use here formula in excel that is

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

put here value and we get

after solving we get current price of the bond is $1,232.15  

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Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 560,000 units are e
andrew11 [14]

Answer:

d. $11.11 per unit

Explanation:

Plant wide overhead rate = Total manufacturing cotsts / Total direct labor hours

Plant wide overhead rate = ($2,530,000 + $900,000) / (168,000+110,000)

Plant wide overhead rate = $3,430,000 / 278,000

Plant wide overhead rate = $12.34 per DLH

Overhead cost per unit = Plant wide overhead rate * Direct hours per unit

Overhead cost per unit = $12.34 * 0.90

Overhead cost per unit = $11.11 per unit

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3 years ago
Which of the following individuals is defined as an "agent" under the Uniform Securities Act? I An individual who represents a b
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3 years ago
Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, sh
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Answer:

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Explanation:

We have given ending balance = $159000

It is given that she withdraw $29000 from the partnership

So withdraw amount = $29000

Net loss = $20500

And additional contribution = $19000

We have to fond the capital balance at the beginning of the year

So capital balance at the beginning of the year will be = Ending balance + withdraw amount + net loss - additional contribution = $159000 +$29000 + $20500 - $ 19000 = $189500

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6 0
4 years ago
Tallow​, Inc. had reported the following​ balances: LOADING...​(Click the icon to view the 2018 and 2019 ​balances.) 11. Compute
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Answer:

Explanation:

Rate of return on common stockholder's equity for 2019:

= (Net Income - Preferred Dividend) / Av. common stockholder's equity

= ($94,000 - $26,000) / $312,000

= $68,000 / $312,000

= 0.2179 or 21.79%

Av. common stockholder's equity 2019 :

Total stockholder's equity 2018 ( Common) = Total stockholder's equity - Stockholder's Equity attributable to preferred

= $318,000 - $22,000

= $296,000

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= $350,000 - $22,000

= $328,000

Av. common stockholder's equity 2019 = ($296,000 + $328,000) / 2 = $312,000

7 0
4 years ago
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Answer: (c) A limited amount of compensatory and punitive damage

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