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4 years ago

15

When considering whether to have a new roof installed on a building, the money spent previously on roof repairs to the old roof

is information that is relevant to the business decision.
a. True
b. False

1 answer:

Whitepunk [10]4 years ago

3 0

Answer: b. False

Explanation:

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Bond prices and yields Assume that the Financial Management Corporation's $1 comma 000-par-value bond has a 7.800 % coupon,

Neporo4naja [7]

Answer:

(a) Dollar price of the bond = Par value × Current price percentage

= $1,000 × 106.124%

= $1,061.24

(b) Bond's current yield:

Annual interest paid in dollars = Bond par value × Rate of interest

= $1,000 × 7.8%

= $78

$Current\ yield = \frac{Interest}{Bond\ value}$

$Current\ yield = \frac{78}{1,061.24}$

= 0.0734

= 7.34%

(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.

(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.

3 0

3 years ago

Which of the following could describe a point that lies on an input contract curve? a. An allocation of good X and good Y betwee

kiruha [24]

Answer:

An allocation of labor (L) and capital (K) between two firms that makes the firms' isoquant curves tangent in an Edgeworth box ( C )

Explanation:

A contract curve is a curve on which the various final allocations of two goods or service between two people are represented and this could be mutually beneficial as well. hence the best description of a point that lies on an input contract curve is An allocation of labor (L) and capital (K) between two firms that makes the firms' isoquant curves tangent in an Edgeworth box

3 0

3 years ago

When a manager develops a cost of capital for a specific project based on the cost of capital for another firm that has a simila

Aneli [31]

Answer: Pure play

Explanation:

A pure play method in finance is an approach that is used to estimate and determine the cost of equity capital of a private company which involves looking at the beta coefficient of other single focused and public companies.

Pure-play companies are the companies that are involved in a single line of business.

5 0

3 years ago

Show your work and explain in a full sentence how 4 2-6 is equivalent to 3 8-6.

klemol [59]

Answer:

$4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}$

Explanation:

Given

$4\frac{2}{6}$ and $3\frac{8}{6}$

Required

Show that they are equivalent

To do this, we simply convert both fractions to either decimal or improper fraction

Using improper fraction

$4\frac{2}{6} = \frac{6 * 4 + 2}{6}$

$4\frac{2}{6} = \frac{24 + 2}{6}$

$4\frac{2}{6} = \frac{26}{6}$

$3\frac{8}{6} = \frac{6 *3+8}{6}$

$3\frac{8}{6} = \frac{18+8}{6}$

$3\frac{8}{6} = \frac{26}{6}$

After converting both to improper fraction, we have:

$4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}$

<em>Hence, both are equivalent</em>

3 0

3 years ago

Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to

Brilliant_brown [7]

Answer:

A. 100,000 equivalent units

Explanation:

Calculation for what the Total equivalent units for Material P under the weighted-average method are calculated to

First step is to calculate the Unit transferred out

Unit transferred out = 28,000+72,000-16,000

Unit transferred out =84,000

Now let calculate the Total equivalent units for Material P

Total Equivalent unit of material P = 84,000+16,000

Total Equivalent unit of material P = 100,000

Therefore the Total equivalent units for Material P under the weighted-average method are calculated to 100,000 equivalent units

7 0

3 years ago