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9966 [12]
3 years ago
14

When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the:

Business
1 answer:
Vlad1618 [11]3 years ago
7 0

Answer:

The remaining part of the question is:

The interest payments are reinvested at the:

a.Coupon rate.

b.Current yield.

c.Yield to maturity at the time of the investment.

d.Prevailing yield to maturity at the time interest payments are received.

e.The average yield to maturity throughout the investment period

<u>Correct Answer:</u>

b.<u>Current yield. </u>

<u></u>

Explanation:

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Last year Almazan Software reported $10.500 million of sales, $6.250 million of operating costs other than depreciation, and $1.
castortr0y [4]

Answer:  -($0.5025) million

Explanation:

As depreciation is expected to increase this year by $0.670 million.

Therefore,

Expenses will increase and will result in decrease in income before tax by $0.670 million.

Additional tax saving on increase in depreciation = $0.67 × 25%

                                                                                   = $0.1675 million

Hence,

Total change in net income = -($0.67) + $0.1675

                                              = -($0.5025) million

8 0
3 years ago
Hitzu Co. sold a copier costing $6,500 with a two-year parts warranty to a customer on August 16, 2018, for $13,000 cash. Hitzu
kari74 [83]

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6 0
3 years ago
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Rowland &amp; Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in Fe
bixtya [17]

Answer:

Journal entries

Feb 01

Rent Expense                                           Debit               $ 200

Cash                                                          Credit                                   $ 200

Record payment of hanger rent for Feb

Feb 04

Cash                                                          Debit              $ 800

Unearned Revenue                                  Credit                                  $ 800

Recording of cash received in advance

Feb 7

Cash                                                           Debit             $ 900

Service Revenue                                       Credit                                $ 900

To record service revenue received in cash

Feb 10

Salaries and wages                                  Debit           $ 1,200

Cash                                                          Credit                                $ 1,200

To record salaries paid for services received in February

Feb 14

Advertisement expenses                         Debit          $    100

Cash                                                          Credit                               $    100

To record payment of advertisement expenses

Feb 18

Cash                                                          Debit            $ 500

Accounts Receivables                              Debit         $ 1,200

Service Revenue                                       Credit                             $ 1,700

To record services provided on cash and on credit

Feb 25

Supplies Inventory                                   Debit           $ 1,350

Accounts Payable                                    Credit                              $ 1,350

Recording of purchase of supplies for future use on credit

The preliminary net income for February is $ 1,100

The net profit margin is  42.3 %

Explanation:

Computation of net income and net profit margin

Revenues   ( $   900 + $ 1,700 )                                                     $ 2,600    

Expenses ($ 200 + $ 1,200 + $ 100 )                                             <u>$ 1,500</u>

Net Income                                                                                      $ 1,100    

Net profit margin = Net income / Revenues

Net Profit margin   = $ 1,100/ $ 2,600 =                                          42.3 %  

The other entries for collections made on Feb 04 for services to be performed next month and the purchase of supplies to be used in the future are not to be considered in revenues and expenses as they do not pertain to the current month                                                                                                                  

5 0
3 years ago
35. Porter's national diamond can be used to:
Anna007 [38]

Answer:

The Porter Diamond model explains the factors that can drive competitive advantage for one national market or economy over another. It can be used both to describe the sources of a nation's competitive advantage and the path to obtaining such an advantage.

7 0
2 years ago
Rankine Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups
guapka [62]

Answer:

Net amount of accounts receivable that should be included in current assets:

= Accounts receivable - Allowance for doubtful accounts

= $256,000 - $8,000

= $248,000

The journal entry is as follows:

Bad debt expense[$8,000 - $1,000] A/c Dr. $7,000

           To Allowance for doubtful accounts               $7,000

(To record the bad debt expense)

4 0
2 years ago
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