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3 years ago

How does a bond issuer decide on the appropriate coupon rate to set on its bonds?

Business

1 answer:

Novay_Z [31]3 years ago

4 0

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

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The price elasticity of a good will tend to be larger:a)the longer the relevant time period. b)the fewer number of substitute go

Butoxors [25]

The price elasticity of a good will tend to be larger if the fewer number of substitute goods will be available.

The cross elasticity of demand for substitute goods is always positive because the demand of one good increases at the time when the price for the substitute good increases however the cross elasticity of demand for complementary goods is always negative.

For example, if the price of coffee rises, the quantity demanded for tea which is the best substitute of coffee beverage will increase as consumers will switch to a less expensive but the substitutable alternative.

This is reflected in the cross elasticity of the demand formula, as both the numerator which is the percentage change in the demand of tea and denominator which is the price of coffee shows a positive increase.

To know more about price elasticity of demand here:

brainly.com/question/13565779

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7 0

2 years ago

Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and dire

Anvisha [2.4K]

Answer:

Results are below.

Explanation:

Giving the following information:

Total manufacturing costs, $8,450,000

Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)

Work-in-process inventory on January 1, 2017, $390,000

Cost of finished goods manufactured, $8,020,000

First, we need to calculate the direct material and direct labor:

Direct labor= Manufacturing overhead allocated/2.5

Direct labor= 3,375,000 / 2.5

Direct labor= $1,350,000

Total manufacturing costs= Direct material + direct labor + allocated overhead

8,450,000= Direct material + 1,350,000 + 3,375,000

Direct material= $3,725,000

Finally, the ending work-in-process:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

8,020,000= 390,000 + 8,450,000 - Ending WIP

Ending WIP= $820,000

3 0

3 years ago

What transactions are included in income from continuing operations? briefly explain why it is important to segregate income fro

Advocard [28]

Transactions that are included in continuing operations are income from revenue,expenses, gains and losses.These are the components that will probably continue in future periods. It is important to segregate income from continuing operations from other transactions that affecting net income, because the information will help analysts predicts future cash flows.

3 0

3 years ago

Compute the Cost of Goods Manufactured and Cost of Goods Sold forWest Nautical Company for the most recent year using the amount

topjm [15]

Answer:

$72,000 and $229,400

Explanation:

The computation is shown below:

For direct materials used:

= Beginning of Year raw material + Purchase of direct materials - end of year raw material

= $27,000 + $75,000 - $30,000

= $72,000

For goods manufactured, it would be

= Direct material used + Direct labor + Manufacturing Overhead

where,

Manufacturing Overhead would be

= Indirect labor + insurance on plant + Depreciation + Repairs and maintenance+ Beginning work-in-process - Ending work-in-process

= $39,000 + $10,000 + $12,900 + $3,500 + $42,000 - $37,000

= $70,400

So, the goods manufactured would be

= $72,000 + $87,000 + $70,400

= $229,400

5 0

3 years ago

WILL GIVE BRAINLIEST!! Answer the following 3 questions A, B, or C.

vitfil [10]

Answer:

4.B 5.A 6.C thanks for the brainliest

5 0

3 years ago