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asambeis [7]
3 years ago
13

The bond has a coupon rate of 6.11 percent, it makes semiannual payments, and there are 2 months to the next coupon payment. A c

lean price of $977 and the par value is $1,000. What is the invoice price?
Business
1 answer:
allsm [11]3 years ago
6 0

Answer:

$997.37

Explanation:

For computing the invoice price first we have to determine the accrued interest which is shown below:

Accrued interest is

= Par value × coupon rate × remaining months ÷ total months

= $1,000 × 6.11% × 4 months ÷ 12 months

= $20.37

Now

Invoice price is

= Clean price + Accrued interest

= $977 + $20.37

= $997.37

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Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It no
Marina CMI [18]

Answer:

Digital Fruit

The expected market price of the common stock after the announcement is:

$20 per share.

Explanation:

Outstanding number of shares = 40 million

Market price of outstanding shares = $20 a share

Total market capitalization = $800 million

Debts introduced = $310 million

Market capitalization after the debt issue = $490 million ($800 - 310 million)

Number of shares bought back = $310 million /$20 = 15,500,000

Outstanding number of shares after the buy-back = 40 million minus 15.5 million

= 24,500,000 shares

Expected market price of the common stock after the announcement

= $490,000,000/24,500,000

= $20 per share

3 0
2 years ago
Barbara operates a sporting goods store. She uses the cash method and treats inventory as nonincidental supplies. At the beginni
hoa [83]

Answer:

$454,000

Explanation:

Ending inventory is the value of the inventory in the store at the end of the year.

Goods are purchased and added to the the beginning inventory, the sale for the period is deducted from it. the residual value is the value of ending Inventory.

In This question it is assumed that there is $26,000 of beginning inventory of the goods. $470,000 of the purchases were made and at the end of the year there was $42,000 balance of inventory.

We can calculate the deduction value as follow

Ending Inventory = Beginning Inventory + Purchases - deduction

$42000 = $26,000 + $470,000 - deduction

$42000 = $496,000 - deduction

Deduction = $496,000 - $42,000 = $454,000

5 0
3 years ago
Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the mont
Oksanka [162]
I think it is D
Hope my answer help you
4 0
3 years ago
Airlines utilize _____ because there is constant communication and back-and-forth between gate agents, ticket agents, baggage ha
solniwko [45]

Hey there!

Your answer is reciprocal independence.

In reciprocal independence, different areas of a company are constantly communicating with each other.

Sequential independence means that one area is dependent on the actions of another, which is not what this is describing.

In pooled independence, different parts of the business are very separate and don't really interact with others, which is definitely what this is describing.

Hope this helps!

4 0
3 years ago
Deadweight loss is A. the reduction in consumer expenditure resulting from market failure. B. the reduction in economic surplus
never [62]

Answer:

The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.

Explanation:

Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.

For example if a price ceiling is established, suppliers will tend to lower the quantity supplied while the quantity demanded either increases or stays the same. That economic deficiency resulting from an unsatisfied demand is what we call deadweight loss.

Other causes for deadweight loss are price floors (reduction of the quantity demanded) and taxation (shifts on the demand or supply curves).

5 0
3 years ago
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