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g100num [7]
3 years ago
15

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.02 percent paid semiannually and sell for $1,948.34. The bonds hav

e a par value of $2,000 and 17 years to maturity. What is the current yield for these bonds
Business
1 answer:
Minchanka [31]3 years ago
5 0

Answer:

5.15%

Explanation:

Following data provided in the question

Coupon rate = 5.02%

Present value of the bond = $1,948.34

Par value = $2,000

Time period = 17 years

By considering the above information, the current yield on the bond is

= (Par value × coupon rate interest) ÷ (Present value of the bond)

= ($2,000 × 5.02%) ÷ ($1,948.34)

= 5.15%

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Mashcka [7]

The company is displaying an example of buying allowances.

<h3>What is purchase allowance?</h3>

A manufacturer or distributor may give a purchasing allowance as a discount on the list price in exchange for a minimum order. A consumer may also be given this amount in return for keeping any defective or inaccurate items. When a client has official buying functions, purchase allowances are more prevalent since the purchasing team may negotiate them with suppliers.

<h3>What is the difference between sales allowance and cash discount?</h3>

You might wish to offer a buyer an incentive occasionally while attempting to sell your house. Offering a monetary discount or a sales allowance might aid in the selling of your house if there is a significant supply of houses in your neighborhood. <u>Both a </u><u>sales allowance </u><u>and a </u><u>cash discount </u><u>can assist persuade a </u><u>buyer </u><u>to </u><u>buy</u> your house, even if both incentives are different in theory.

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2 years ago
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4 0
3 years ago
Residual Income = $23000 Operating income = 49,998 Cost of Capital = 12% What is return on investment?
AlekseyPX

Answer:

Return on investment = 27.35 %

Explanation:

Below is the given information.

Residual Income = $23000

Operating income = 49,998

Cost of Capital = 12%

Now calculate the invested amount. Here, below is the calculation of the investment amount.

Invetment amount = (Operating income- Residual income) / Cost of capital

= (49998 - 23000) / 12%

= $ 224983

Now calculate the return on investment by using below formula.

The Return on investment = (operating income ÷ investment)×100

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6 0
4 years ago
Which two skills or abilities are important for a school counselor?
gtnhenbr [62]

Explanation:

Active listening skill:

Listening skill is very essential for answering to the queries raised my students. The job of counselor is to counsel candidates according to requirement. He/she must understand the candidate background and also the expectation of the school, in order to match and provide necessary counselling.

Leadership skill:

He/ She should possess good leadership skill to show the path to others. He/she is the person who guides others, so this is a quality of good leader.

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4 years ago
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Single largest contributor to the probability that a firm will end up in financial distress?
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Financial distress may therefore make it difficult for the company to obtain external funding for viable projects. Our inability to raise external funding and our predicament may both impact our trade credit policy.

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