Answer:
8.9%
Explanation:
Calculation for what The current yield of the bond to the nearest tenth of a percent is:
Current yield of Bond=[(8+1/4)*10]/(93*10)
Current yield of Bond=(8.25*10)/930
Current yield of Bond=82.5/930
Current yield of Bond=0.089*100
Current yield of Bond=8.9%.
Therefore The current yield of the bond to the nearest tenth of a percent is 8.9%
Answer:
NPV = $1.49 million
Explanation:
<em>The NPV is the difference between the PV of cash inflows and the PV of cash outflows. A positive NPV implies a good investment decision and a negative figure implies the opposite. </em>
<em>NPV of an investment: </em>
NPV = PV of Cash inflows - PV of cash outflow
But we will need to work out the discount rate to be used for discounting the cash flows. Hence, we need to determine the cost of capital as follows:
Step 1: After-tax cost of debt
After tax cost of debt = pre-tax cost of debt × (1-tax rate rate)
= 9%× (1--0.3)=6.3%
Step 2 : Weighted Average cost of capital (WACC)
WACC=( 0.25×6.3%) + (0.75× 13%) =11.325
%
Step 3:Net Present Value (NPV)
PV of cash inflow= (1- (1.11325^-5)/0.11325)× 13.5 = 49.49 million
Initial cost = $48 million
NPV = 49.49 million - $48 million =$1.49 million
NPV = $1.49 million
Answer:
$ 226.04
Explanation:
Given:
Paying fund, FV = $ 30000
Interest rate, i = 2%
Time, t = 10 years
Now,
since, the payment is made monthly
thus,
n = 10 × 12 = 120 months
i = 2% / 12 = 0.02 / 12
on substituting the values in the above equation, we get
or
PMT = $ 226.04
Answer:
November 1 Inventory 52 units at $79
November 10 Sale 35 units
- COGS = 35 x $79 = $2,765
- Inventory balance = 17 x $79 = $1,343
November 15 Purchase 27 units at $83
November 20 Sale 25 units
- COGS = (17 x $79) + (3 x $83) = $1,592
- Inventory balance = (24 x $83) = $1,992
November 24 Sale 13 units
- COGS = 13 x $83 = $1,079
- Inventory balance = 11 x $83 = $913
November 30 Purchase 39 units at $86
- Inventory balance = $913 + (39 x $86) = $4,267