Answer:
Bondholders have a degree of legal protection against default risk, but it is not comprehensive.
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.
The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.
In Economics, bonds could either be issued at discount or premium. A bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance while a bond that is issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.
Default risk in bonds refer to the risk that a bond issuer (borrower) is unable to pay the principal or interest agreed upon in the contract with the bondholder (lender) in a timely manner.
Hence, the true statement about default risk is that bondholders have a degree of legal protection against default risk, but it is not comprehensive.
Answer:
The direct labor cost cannot be ascertained from the information given in the question
Explanation:
Direct materials+Direct labor cost= $8300000
In order to determine the labor cost of the $8300000, we need a clue as to the percentage of the labor cost in the total of $8300000 or the portion of $8300000 that belongs to direct materials.
Since such a hint is missing,we can simply guess, costs incurred cannot be shared out on a basis that has no relationship with reality,hence, the correct answer is that the direct labor cost cannot be determined based on details provided.
Answer:
= $198,000
Explanation:
A Cash flow statement records the movement of cash asset in an organization. It monitors the inflows and outflow of money in a financial year.
For innovative products:
Cash from net income: $ 205,000.00
Increase in inventory
($45,000-$40,000) $5,000.00
Accounts payables
($33,000-$35,000) ( $2, 000.00 )
Net operating cash flow= $205,000-$5000- $2000
= $198,000
Answer and Explanation:
The computation of the gain recognized and the tax that should be paid is shown below
Sale of share(10 × 8 × $22) $1,760
Less: basis (10 × 8 ×$15) $1,200
The gain realized $560
Now the tax would be
= $560 × 15% preferential rate
= $84
Answer: $159,319.26
Explanation:
The monthly contribution of $80 is constant so this is an annuity. As we are to find the value after 40 years, this is a future value calculation.
No. of periods = 40 years * 12 months = 480 months
Interest = 0.5%
![Future Value of Annuity = Contribution * \frac{[(1 + r)^{n} - 1]}{r} \\\\= 80 * \frac{[(1 + 0.005)^{480} - 1]}{0.005}\\\\= 159,319.2587](https://tex.z-dn.net/?f=Future%20Value%20of%20Annuity%20%3D%20Contribution%20%2A%20%5Cfrac%7B%5B%281%20%2B%20r%29%5E%7Bn%7D%20-%201%5D%7D%7Br%7D%20%5C%5C%5C%5C%3D%2080%20%2A%20%5Cfrac%7B%5B%281%20%2B%200.005%29%5E%7B480%7D%20-%201%5D%7D%7B0.005%7D%5C%5C%5C%5C%3D%20159%2C319.2587)
= $159,319.26
I think savings that add up to $159,319.26 will make most people think twice about the expensive Carmel Machiatto calorie bomb.
