The effective rate on these bonds is 7.17%
<h3>What is the effective rate?</h3>
The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.
The effective interest rate can be determined using a financial calculator:
- Cash flow in year 0 = -490,222
- Cash flow from period 1 - 12 = 6% x 540,000 = 32,400
- Cash flow in year 6 or period 12 = $540,000
effective interest rate = 7.17%
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Answer:
create rituals to demonstrate the company's efforts to support sustainability action.
Explanation:
If a company wants to incorporate a culture of sustainability in its organization it should bring everyone on board with its goals.
Defining a culture in an organization is difficult and in intangible. Company should involve employees to clearly express its views about sustainability and create a culture to support company's efforts toward sustainability actions.
Answer:
buying puts
Explanation:
A put option is a sale option. It gives the buyer the right (but not the obligation) to sell an asset in the future to the seller of the option at a previously determined price.
The owner or buyer of a put option benefits from the option if the underlying asset falls, that is, if when the put option expires, the asset (a share for example) has a price lower than the agreed price . In that case, the option buyer will exercise his right and sell the asset at the agreed price and then buy it at the current market price, earning the difference.
If the price turns out to be higher than the agreed price, known as the strike or strike price, the buyer will not exercise his right and will simply have lost the premium he paid to acquire the option. Therefore, your benefit may be unlimited, but your loss is limited to the premium you paid.
<span>Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000
1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000
Sales = Variable expenses + Fixed expenses + Profit
$120Q = $80Q + $50,000 + $10000
$40Q = $60000
Q = $60,000 /$40
Q =1500 Units
2. Using the format method, solve for the unit sales that are required to earn a target profit of $15,000
Sales = 50000+15000/120-80 = 1625 units.
Mauro Products distributes a single product, a woven basket whose selling prices are $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200.
1. Solve for the company’s breakeven point in unit sales using the equation method.
Sales = Variable expenses + Fixed expenses + Profit
$15Q = $12Q + $4,200 + $0
$3Q = $4200
Q = $4200 /$3
Q =1400 Units
2. Solve for the companies breakeven point in sales dollars using the equation method and the CM ratio.
X = 0.8X + 4,200 + $0
0.2X = $4200
X = $4200 / 0.2
X = $21,000
CM ratio method
BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000
3. Solve for the company’s breakeven point in unit sales using the format method
4200/15-12 = 1400 units.
4. Solve for the company’s breakeven point in sales dollars using the format method and the cm ration.
BEP = fixed cost /1-Variable cost / Selling price = 4200/1-12/15 = $21000
CM ratio method
BEP = fixed cost /Sales-Variable cost /Sales = 4200/15-12/15 = $21000</span>
Answer:
B). Agriculture, Industry, Services.
Explanation:
The United States is a highly developed country owning a mixed economy. Its GDP and net wealth makes it the largest economy of the world. The economy of the United States in divided into three major sectors i.e. Agriculture or the primary sector, the Industrial sector, and the service sector. The service sector contributes most to the US economy with 68% of its contribution. The primary sector contributes 5.4% to the GDP and the industry with 26.6% of its contribution to the development of U.S. economy. Thus, <u>option B</u> is the correct answer.
