Answer:
Asset Price= $746,617.36
Explanation:
Giving the following information:
Face value= $1,000,000
Coupon= 0.03/2= 0.015*1,000,000= $15,000
Number of periods= 2*4= 8 semesters
YTM= 0.11/2= 0.055
<u>To calculate the price of the asset, we need to use the following formula:</u>
<u></u>
Asset Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Asset Price= 15,000*{[1 - (1.055^-8) / 0.055} + [1,000,000 / (1.055^8)]
Asset Price= 95,018.49 + 651,598.87
Asset Price= $746,617.36
Answer:
(1) $1,885
(2) $1,540
Explanation:
Given the following sequence:
200 units at $5, 600 units at $6 and 145 units at $7
Ending inventory = 290 units
(1) FIFO method
Cost of ending Inventory:
= 145 units at $7 + 145 units at $6
= 145 × $7 + 145 × $6
= 1,015 + 870
= $1,885
(2) LIFO method
Cost of ending Inventory:
= 200 units at $5 + 90 units at $6
= 200 × $5 + 90 × $6
= 1,000 + 540
= $1,540
There is a good chance that no one would buy anything cause of the high prices...
D. Increased personal workload
COMPLETE QUESTION:
Sarah’s Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size:
(The attachment contains the information)
Answer: 216 mufflers is the best order size.
Explanation:
The attachment contains the calculations and information.
