Answer:
$213,250
Explanation:
The calculation of cash inflow is shown below:-
Expected cash collections
For the month of June
Months Sales Percentage Expected collections
April $282,500 5% $14,125
May $213,750 30% $64,125
June $225,000 60% $135,000
Total collection in the month of June $213,250
Here we assume Sales for April$282,500, May $213,750 and June $225,000.
Please ignore the last value as it is not relevant to the question
Answer:
$468,844 approx.
Explanation:
<u>Assumption</u>: <u>Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingl</u>y.
The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.
![B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5Cfrac%7Bi%7D%7B%281%5C%20%2B%5C%20ytm%29%5E%7B1%7D%20%7D%5C%20%2B%5C%20%5Cfrac%7Bi%7D%7B%281%5C%20%2B%5C%20ytm%29%5E%7B2%7D%20%7D%5C%20%2B.....%2B%5Cfrac%7Bi%7D%7B%281%5C%20%2B%5C%20ytm%29%5E%7Bn%7D%20%7D%20%5C%20%2B%20%5Cfrac%7BRV%7D%7B%281%5C%20%2B%5C%20ytm%29%5E%7Bn%7D%20%7D)
wherein,
= price of bond as on today
i = annual coupon payments
ytm= investor's expectation of interest or market rate of interest on similar bonds
RV = Redemption value of such bonds assumed to be the face value
n = term to maturity
![B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5Cfrac%7B22500%7D%7B%281%5C%20%2B%5C%20.05%29%5E%7B1%7D%20%7D%5C%20%2B%5C%20%5Cfrac%7B22500%7D%7B%281%5C%20%2B%5C%20.05%29%5E%7B2%7D%20%7D%5C%20%2B.....%2B%5Cfrac%7B22500%7D%7B%281%5C%20%2B%5C%20.05%29%5E%7B20%7D%20%7D%20%5C%20%2B%20%5Cfrac%7B500000%7D%7B%281%5C%20%2B%5C%20.05%29%5E%7B20%7D%20%7D)
12.46221 × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5
$468,844 approx
This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.
The desire for a produsct class rather than for a specifik brand is called selective demand
Are there any answer options? I know the answer if you have options
In order to determine if a home is fairly priced or not, it is important to look at the home's:
C. price per square foot.