Answer:
the current yield on the bond is lower now than when the bond was originally issued.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.
My answer would probably be B!
Answer:
B) Inflation is everywhere and always a monetary phenomenon.
Explanation:
Henry Thornton developed this theory in 1802. According to the Quantity Theory, In an economy, there is a direct relationship between the quantity of money in the economy and the prices of goods and services. The price levels are directly related to the amount of money in circulation, which is the cause of inflation. Hence the consumer has to pay more for the same amount of commodity.
Answer:
The balance in the Treasury Stock account reduces total Stockholders' Equity
Explanation:
Treasury stock also known as reacquiring stock refers to outstanding shares which were previously owned by a company which is then bought back by shareholders of that company. Treasury stock do not have much value but provide means of raising the price of share which in turn provides profits for investors.
Treasury stock is normally recorded in the shareholders equity section of the balance sheet representing the number of repurchased shares from the open market, thereby reducing shareholder's equity by the amount paid for the stock
Answer:
Particulars Amount
Raw material used $18,600
Add: Direct labor $26,600
<u>Overhead costs</u>
Factory supplies $3,100
Plant depreciation $6,800
Indirect labor $8,600
Utilities ($10,600*80%) <u>$8,480</u>
Total overhead cost <u>$26,980</u>
Total manufacturing costs <u>$72,180</u>
