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Sergeu [11.5K]
3 years ago
13

Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bond has a face value of $1,000 and pays a dividend o

f 8% per year, compounded semi-annually. Bill bought the bond three years ago at face value and there are seven years remaining until the bond matures. Bill wishes to sell it now for a price that will result in Bill earning an annual yield of 10% compounded semi-annually. What price does Bill need to sell the bond for to earn his desired return

Business
1 answer:
kramer3 years ago
7 0

Answer:

$1,068.02

Explanation:

For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:

Given that,  

Present value = $1,000

Rate of interest = 10% ÷ 2 = 5%

NPER = 3 years × 2 = 6 years

PMT = $1,000 × 8% ÷ 2 = $40

The formula is shown below:

= FV(Rate;NPER;PMT;-PV;type)

The present value comes in negative

So, after applying the above formula, the selling price of the bond is $1,068.02

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Given the following information for Smith Company's Northern Division, what is the division's EBITDA margin?
erma4kov [3.2K]

Answer:

EBITDA margin is 55.58%

Explanation:

EBITDA margin is computed as;

= EBITDA / Total revenue

Where,

EBITDA = Earnings before interest and taxes + depreciation + amortization

EBITDA margin = ($18,112 + $5,000 + $1,422) / $44,140

EBITDA margin = $24,534 / $44,140

EBITDA margin = 55.58%

4 0
3 years ago
Leslie is a newly graduated certified public accountant with a specialty in corporate tax. She wishes to join an organization (N
Aleks04 [339]

Answer: Functional Structure

Explanation: Leslie should look for a position in a firm with a functional structure, in order for her to gain full in-depth knowledge in her area of specialty Corporate Tax.

An organization with functional structure is one which assign it's employees to job roles which are specifically their areas of specialization.

7 0
3 years ago
All of the following will occur if the government places an effective price ceiling on candy bars except:
miskamm [114]

Answer:

c. there will be a surplus of candy bars. 

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If a price ceiling is effective, the price ceiling is set below equilibrium price.

If price is set below equilibrium price, the quantity supplied would fall and this would lead to an excess of demand over supply. Also, scarcity of the product for which a price ceiling has been set would occur.

A black market would occur. There would be a drop in the quality of product as sellers would be trying to maximise profits.

I hope my answer helps you

6 0
4 years ago
Ten years ago a corporation purchased a building for​ $160,000. at that​ time, the corporation felt that the building was worth​
Alla [95]
<span>The building should be recorded in the corporation's account records as $405,000 because of it's assessed value for property tax purposes. The worth of the building ten years ago as well as the amount the corporation paid for it at that time no longer matters, and the current market value of the building also does not matter if the building is not being sold.</span>
8 0
3 years ago
McCoy’s Fish House purchases a tract of land and an existing building for $920,000. The company plans to remove the old building
Tasya [4]

Answer:

Explanation:

Amount McCoy’s Fish House should record as the cost of the land = Purchase price of land + Title insurance + Back taxes for property + Cost of removing the building + Cost of leveling the land - selling price pf salvaged materials

= $920,000 + $2,200 + $8,200 + $46,000 + $10,200 - $3,400

= $983,200

Property tax of $4,200 paid in the current year is included in the income statement as an expense and is not included in the cost of land.

Therefore, cost of land is $983,200

8 0
3 years ago
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