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padilas [110]
3 years ago
13

Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a curren

t price of $1,108.60. At this price, the bonds yield 7.5 percent. What is the coupon rate? Select one: a. 9.01 percent b. 8.46 percent c. 8.78 percent d. 9.32 percent e. 8.93 percent
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

c.) 8.78 percent

Explanation:

You can solve this question using a financial calculator. I am using (Texas Instruments BA II plus)

<em>Note: If using the same calculator as me, key in the numbers first before the function .</em>

Total duration of investment ;N = 14

YTM ; I/Y  = 7.5%

Face value or Par value; FV = 1000

Current Price; PV = -1108.6

then CPT PMT = $87.793

Coupon payment = $87.793

Coupon rate = (Coupon payment / Par value) *100

Coupon rate = (87.793/1000) * 100

                    =0.08779 *100

                    = 8.779%

Therefore, the coupon rate = 8.78%

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Answer and Explanation:

The preparation is presented below:

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<u>                                                  Partial balance sheet</u>

Particulars                                      Amount

Current liabilities

Note payable                                 $250,000

Long term debt

Note payable refinance                $950,000

Total liabilities                                $1,200,000

We simply added the long term debt and the current liabilities so that the total liabilities could come

8 0
3 years ago
Which of the following is NOT one of the three big categories for periodic evaluations:
Lilit [14]

The category that does not belong to the periodic evaluation is Change Analysis.

Option D is the correct answer.

<h3>What is a periodic evaluation?</h3>

Periodic evaluation is a technique that is totally developmental in nature and disregards the formal advice relating to tenure, retention, or promotion of employees.

Periodic evaluation has three broad categories namely, hazard analysis, safety, and health-related inspections, and evaluation relating to personal protective equipment (PPE).

Therefore, out of the provided options, Change analysis is not considered a category for periodic evaluation.

Learn more about the periodic evaluation. in the related link;

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4 0
1 year ago
According to the​ Break-Even EBIT​ analysis, shareholders are​ ____ off with debt when EBIT is​ _____ the​ Break-Even EBIT level
Kobotan [32]

Answer:

Answer B.

Explanation:

EBIT break even point is a situation when company does not make a profit or has loss. It is a point where earnings per share are equal to zero. It is the level of ebit equal to fixed costs for the company, like interest on the debt. If this break even point increases, this leads to the increase of financial risk. However, increase of ebit above break even point leads to net income calculated as EBIT*(1-interest expense)*(1-tax rate)-preferred dividends being higher.

3 0
3 years ago
Q1. Identify the different types of external and internal trends that have impact on HRM? Give an example of each trends in your
Diano4ka-milaya [45]

Internal influences on HRM objectives

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E.g. an objective of cost minimisation results in the need for redundancies, delayering or other restructuring

Operational strategies

E.g. introduction of new IT or other systems and processes may require new staff training, fewer staff

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E.g. a decision to reduce costs by outsourcing training would result in changes to training programmes

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Market changes

E.g. a loss of market share to a competitor may require a change in divisional management or job losses to improve competitiveness

Economic changes

E.g. changes in the level of unemployment and the labour market will affect the supply of available people and their pay rates

Technological changes

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Share:

5 0
3 years ago
Mandy wants to mention detailed information about her hobbies, personal qualities, strengths, and professional achievements in a
dalvyx [7]

Answer:

Career portfolio I think

Explanation:

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6 0
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