Answer: $8
Explanation:
Given that,
Book value of a bond = $100
Market value of the bond (principal + interest payable) = $120
Discount rate when bond was issued = 10%
Discount rate prevailing at the beginning of the year = 8%
Therefore, Discount amount = 0.08 × $120
= $9.6
Payments to bondholders = $7
The bond was bought back(Repurchase price) for $95 at the end of the year
Net worth at the end of 1 year = Market value - Discount amount - Payments to bondholders
= $ 120 - 9.6 - 7
= $103.4
Net gain / loss = Net worth at the end of 1 year - Repurchase price
= $103.4 - $95
= $8.4
= $8 (approx)
Answer:
B) Retaining
Explanation:
Retaining risk refers to the risk in which the company could able to take the decision with respect to the responsibility for some particular risk
Here in the given situation it represents that the risk is associated with one of the key members so this presents the responsibility that should be considered while retaining a risk
Hence, the correct option is B.
Answer:
If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.
If the firm is going to use between 50,000 to 59,999 motors, it should use process A.
If the firm expects to use 60,000 or more motors per year, it should use process B.
Explanation:
Process A:
contribution margin per unit = $11 - $7 = $4
break even number of units = $200,000 / $4 = 50,000 units
Process B:
contribution margin per unit = $11 - $8 = $3
break even number of units = $180,000 / $3 = 60,000 units
Answer:
D. Commission.
Explanation:
A commission can be defined as a charge for the service provided by an agency or broker or investment advisor. Investment advisor or broker who gives advice regarding investment, or handle purchases, or sell securities for their client charge an amount of money for their service. In securities industry, when a broker or investment advisor charge a sum of money in return for their service to their clients, this charges or compensation is known as commission. An advisor who charges commission earns money by selling investment products or buying investment products on their client's behalf.
Therefore, option D is correct.