Free enterprise and laissez-faire economies gave the most benefits to

One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000. Today,

Dennis_Churaev [7]

Answer:

current price = $1191.79

Explanation:

given data

time t = 15 year

annual coupon bonds rate = = 7.5 %

par value = $1000

interest rate = 5.5%

maturity time = 14 year

to find out

current price of the bonds

solution

we get here first annual coupon rate = 7.5% of 1000

annual coupon rate C = $75

so now we get current price of bond

current price of the bonds = $\frac{C}{(1+r)} +\frac{C}{(1+r)^2} +\frac{C}{(1+r)^3} +\frac{C}{(1+r)^4} ..........\frac{C}{(1+r)^{13}} + \frac{C+par\ value}{(1+r)^{14}}$ .................1

put here value

current price = $\frac{75}{(1+r)} +\frac{75}{(1+r)^2} +\frac{75}{(1+r)^3} +\frac{75}{(1+r)^4} ..........\frac{75}{(1+r)^{13}} + \frac{75+1000}{(1+r)^{14}}$

current price = $\frac{75}{(1+r)} \frac{1-(\frac{1}{1+r})^{14} }{r} (1+r) + \frac{1000}{(1+r)^{14}}$

solve it we get

current price = $1191.79

4 0

3 years ago

Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021:

nignag [31]

Aug. 1 Inventory On Hand—2,000 Units; Cost $5.70 Each.

Second sales assumed to be 7,000 units at a price of $11.40 each.

Answer:

Altira Corporation

August 2021 Ending Inventory & Cost of Goods Sold:

1. Ending Inventory = 9,000 units at $5.88 per unit = $52,920

2. Cost of goods sold =

9,600 x $5.87 = $56,352

7,000 x $5.95 = $41,650

16,600 units = $98,002

Explanation:

a) Calculations:

Units Unit Cost Total Cost

Beginning Inventory 2,000 $5.70 $11,400

Purchases 12,000 $5.90 $70,800

Weighted average cost = ($11,400 + $70,800) / 14,000 = $5.87

Sales (9,600) $12.00 $115,200

Units remaining 4,400 $5.87 $25,828

Purchases 7,200 $6.00 $43,200

Weighted average cost = ($25,828 + $43,200) / 11,600 = $5.95

Sales (7,000) $11.40 $79,800

Units remaining 4,600 $5.95 $27,370

Purchases 4,400 $5.80 $25,520

Weighted average cost = ($27,370 + $25,520) / 9,000 = $5.88

Ending Inventory 9,000 $5.88 $52,920

b) The 'Average Cost Method' or the Weighted Average Cost Method assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. To compute the average cost, divide the total cost of goods available for sale by the total units available for sale.

6 0

3 years ago

The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfolio of p

Galina-37 [17]

Answer:

c. Universal Computer Corp.’s purchase of a competitor’s subsidiary.

b. Atlanta Aeronautics Co.’s purchase of a new piece of equipment.

Explanation:

Consider the following definition.

What is capital Budgeting ? Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.

3 0

3 years ago

the principle of _________ is the premise for elliot erwitt’s humorous photograph felix, gladys, and rover.

nydimaria [60]

The answer is variety within unity. It is because this is the principle being described above in which has became a premise of the humorous photograph of Elliot Erwitt towards Felix, Gladys and Rover. It is a principle that changes the character of a certain element.

5 0

3 years ago

Which of these would be a good candidate for a one-variable data table and payment function?

choli [55]

The correct option is this: CHECKING SCENARIOS WITH VARIABLE DOWN PAYMENT.
A data table is a range of cells, which shows how changing one or two variables in one's formula can affect the value of that formula.
In excel, instead of creating several scenarios, one can create a data table with which one can quickly try out different values for formula.<span />

7 0

3 years ago