Answer:
Price of bond is = $ 1057
Explanation:
As we know that;
Price of bond = C * [1-(1+r)∧-n] / r + F / (1+r)∧n
where C = periodic coupon payment = 1000 * 6%= 60
F = Face value of bond = 1000
r = yield to maturity = 5% = 0.05
n = number of periods till maturity = 7 years
Putting values;
= 60 * [ 1- (1+ 0.05)∧-7 ]/ 0.05 + 1000 / (1+0.05)∧7
= 60 * (0.2893 / 0.05) + 710
= 60 * 5.786 + 710
= 347.16 +710
= 1057
Answer: $52,840
Explanation:
The opportunity cost are the benefits he will give up to pursue his current venture of landscaping.
= Salary from working for uncle + Interest on the Savings to be used in business + Difference in market value if he waits till the end of the year
= 50,000 + (7% * 12,000) + (12,000 - 10,000)
= $52,840
Answer:
Decrease in Bank balance and increase in fixed assets
Explanation:
When a new depreciable asset is purchased, the money leaves the bank account hence reducing the bank balance in the statement of financial position, and on the other hand the 'Fixed asset' balance will rise by the same amount; recognizing the addition to the assets of the company. In this scenario the balance sheet totals remain unchanged as the same amount has been subtracted from 'bank' and added to 'fixed assets' all within the asset side.
However, if the asset is debt financed, it will increase the long term liability figure because 'bank loan' will be recognized. Hence the totals of the balance sheet will rise by the amount of the loan on the 'Capital and liabilities' side and the amount of the asset on the 'Asset' side.
Another impact is that the amount of depreciation charged to the Income Statement will be higher than $2,946,667 which was charged in the previous year because the new asset's depreciation will have to be added.
Answer: Document the risk and calculate the expected monetary value based on the probability and impact of the occurrences.
Explanation:
Risk response refers to the development of strategic options to reduce the threats and enhance opportunities to the objectives of the project.
It should be noted that when new risks are identified, such risks go through the process of risk management and one needs to be able to know the risk probability and risk impact and then get to curtail them.
Answer:
C. Nonstatistical sampling may help avoid second guessing by regulators or jurors should those parties question the quality of the sampling method used.
