Answer:
$10,856
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.
According to given data
Face value of the bond is $10,000
Coupon payment = C = $10,000 x 4.8% = $480 annually = $240 semiannually
Number of periods = n = 22 years x 2 = 44 period
YTM = 4.2% annually = 2.1% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $240 x [ ( 1 - ( 1 + 2.1% )^-44 ) / 2.1% ] + [ $10,000 / ( 1 + 2.1% )^44 ]
Price of the Bond = $6,848.64 + $4007.4 = $10,856.04
Answer:
The correct answer is letter "D": One of several products produced from a common input.
Explanation:
Joint products are those manufactured by large companies whose production process is the same at an early stage for all the different products being produced, but at a certain stage, called a split-off, the products begin to have their own characteristics.
Since the products initially come from the same input, the costs are allocated in the bundle. After the split-off, the cost of production is allocated to each type of product.
Answer:
Hale’s total expenses in calculating operating income is $57000
Explanation:
Operating income represents profit realized in carrying out Hale Company primary activities
Only expenses incurred in are considered in calculation of Hale`s Operating Income
<em>Cost of Sales</em>
Cost of goods sold 22200
<em>Administration</em>
Rent expenses for store 18000
Depreciation 8000
<em>Selling and distribution expenses</em>
Advertising 8800
Total Expenses 57000
Answer:
$65,333
Explanation:
As we know,
Sales price = Variable cost + Contribution cost
Sales price = Variable cost ratio + Contribution margin ratio
100% = 30% + Contribution
Contribution = 100% - 30%
Contribution = 70%
Fixed cost = $19,600
Break even sales = Fixed cost / Contribution margin ratio
Break even sales = $19,600 / 30%
Break even sales = $19,600 / 0.3
Break even sales = $65,333.
