Amount of interest expense on 30th June 20X1= Carrying Amount of Bond*Effective Interest Rate (For 6 Months)
=$940000*5/100
=$47000
Contractual Interest of the bond=Face Value*Contractual Interest
=1000000*4/100
=$40000
Thus, Carrying Amount of Bond=Carrying Amount|+Interest Expense-Interest Paid
Carrying Amount as on 30th June=940000+47000-40000
Carrying amount as on 30th June=$947000
Amount Paid to Redeem Bonds =$1020000
Gain/(Loss) on Redemtion of Bonds=Face Value-Amount Paid to Redeem Bonds
Loss on Bonds=-$73000
Answer:
Profit maximising price = 48
Explanation:
Total Cost : C (x) = 8x + 3
Demand Curve : p (x) = 88 − 2x
Total Revenue = p (x). x = x (88 - 2x) = 88x - 2x^2
Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)
MC = d TC / d Q = d (8x + 3) / d x = 8
MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x
Equating MR & MC ,
88 - 4x = 8 , 88 - 8 = 4x
x = 80 / 4 , x = 20
Putting value in demand curve,
p = 88 - 2x = 88 - 2 (20) = 88 - 40
p = 48
Answer: Management control system
Explanation:
Management control system could be defined as a system that collects and uses information to analyze the performance of different organizational resources like human, physical, financial considering them all together in the light of organizational strategies pursued. It looks at comparing performances with the standards, plans or objective of the organization to determine if they are line with standards.
Answer:
a) The required rate of return is 14.75%
b) The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.
Explanation:
a)
Using the SML equation, we can calculate the required rate of return (r) of a stock.
r = rFR + β * (rM - rFR)
r = 6% + 1.25 * (13% - 6%)
r = 0.1475 or 14.75%
b)
The SML shows the return that is required on a security based on the risk is carries. Using SML we calculate the required rate of return which is the percentage return that investors require a security to provide.
If the expected return is greater than the required rate of return which means that security is expected to provide more than is required then the security is underpriced.
The expected return on this stock is 16% which is more than its required rate of return 14.75%, thus it is underpriced.
Answer:
Three things:
-Under processing before canning
-Spoilage before canning
-entrance of water through can seams during cooling
Explanation:
The preservation process is aimed at reducing the rate of spoilage of food products over time.
When adequately processed a time can be given during which the food product is still not spoilt. For example 1 year from date of canning. After this period there is a high possibility of food spoilage.
If a can of peas was bought from a grocery and it is spoilt it is either the peas were not well processed, there was spoilage before commercial canning, or water entered when cooling during canning
