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SSSSS [86.1K]
3 years ago
14

Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000. They pay a $65 annual coupon and have a 15-year matur

ity, but they can be called in 5 years at $1,100. What is their yield to maturity (YTM)?
Business
1 answer:
Dovator [93]3 years ago
3 0

Answer:

Their yield to maturity (YTM) is 6.11%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $65

Selling price = P = $1,040

Number of periods = n = 15 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $65 + ( $1,000 - $1,040 ) / 15 ] / [ ( 1,000 + $$1,040 ) / 2 ]

Yield to maturity = [ $65 - 2.67 ] / $1,020 = $62.33 / $1,020 = 0.0611 = 6.11%

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The board of directors of capstone inc. declared a $0.60 per share cash dividend on its $1 par common stock. on the date of decl
Liula [17]

The entry for the dividend declaration is as following:
Debit Cash Dividend $12,000
Credit Dividend Payable $12,000
To acquire the amount we must multiply the dividend per share which is 0.06 with a number of common shares issued which is 20,000. Capston, Inc have to entry this transaction as the dividend declares although the cash has not yet disbursed to comply with the accrual principle.
 
The treasury stock must be ignored because it is the portion of stocks which held by the company in its own treasury and the amount of authorized stock because it is not yet issued and the company doesn't have the obligation to pay that portion of stocks dividend<span>.</span>
3 0
3 years ago
A survey of 1000 executives ranked _____________ at the top, as the ideal manager's skill. a. listening b. conflict resolution c
kotegsom [21]

Answer:

The correct answer is letter "A": listening.

Explanation:

Ideal manager skills are a set of practices and preferred behaviors high-range executives are expected to have or develop for managerial purposes. Among those aptitudes good communication and organization are vital. That is why listening is very important since managers must listen to their bosses as well as to their subordinates and customers.

7 0
3 years ago
Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the des
I am Lyosha [343]

Answer:

a. electronic marketing

Explanation:

  • The electronic marketing refers to the strategic processing of the distribution and promotion and pricing of the products and discovery of the desires of the customers and users of their digital media in digital marketing to develop a strategic plan for the promotion of the marketing.
3 0
3 years ago
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs
Sindrei [870]

Answer:

d) $38,000 Debit balance.

Explanation:

Predetermined overhead rate = Estimated Total Overhead Costs / Estimated Direct Labor Costs

= $472000 / $2,360,000

= 0.2

= 20% of direct labor costs.

Applied overheads = (20%*Actual direct labor costs)

Applied overheads = 20% * $1,980,000

Applied overheads = $396,000

So, Overhead under-applied = $434,000 - $396,000 = $38,000 (Debit)

8 0
3 years ago
If the price of good X increases by 2%, and that causes the quantity demanded of good Y to decrease by 15%, then the cross elast
Zina [86]

Answer:

-7.5%

Explanation:

Cross elasticity of demand is the degree of responsiveness of the quantity of a commodity, Y in this case, to the change in the price of another commodity, X in this case.

Cross elasticity of demand is measured as a percentage change in the quantity of commodity Y divided by the percentage in the price of commodity Y. This can be written mathematically as follows:

Ec = % Change in the quantity of commodity Y divided by the percentage in the prie of commodity X.

Where Ec denoted cross elasticity.

Applying the formula to this question, we have

Ec = -15%/2% = -7.5%

Note that under cross elasticity of demand:

1. Two goods are substitute if the value of their cross elasticity of demand is positive. That is, an increase in the price of good one, good X, will lead to an increase in the quantity demand of the second, good Y.

2.  Two goods are complimentary if the value of their cross elasticity of demand is negative.That is, an increase in the price of good one, good X, will lead to an decrease in the quantity demand of the second, good Y.

Therefore in this question, goods X and Y are complimentary because the value of their cross elasticity of demand is -7.5% which is negative.

I wish you the best.

4 0
3 years ago
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