Answer:
option (A) $86
Explanation:
Data provided in the question:
Coupon rate = 6%
Face value of bonds = $1,000
Purchasing price (i.e the selling percentage at the time of purchase )
= 98.6% of par
Selling price = 101.2% of par
Thus,
Annual Coupon payment = Face value × Coupon rate
= $1,000 × 6%
= $60
Now,
Purchase price = $1,000 × 98.60%
= $986
Sales price = Face value of bonds × Selling price
= $1,000 × 101.20%
= $1,012
Therefore,
Total dollar Return
= Sales price + Annual Coupon payment - Purchase price
= $1,012 + $60 - $986
= $86
Hence,
The correct answer is option (A) $86
Answer:
Simulated test markets.
Explanation:
During the market testing stage of the new-product process, a product may be tested multiple times with consumers to get their reactions with test marketing, one type of which is known as simulated test markets.
A simulated test market can be defined as a marketing research technique that involves the exposure of consumers to an unreal market in order to observe their reactions to a new product. It involves advertising in stages through a simulated market so as to determine a customer's purchase decision, forecast demand and market analysis for a new product.
Hence, a simulated test market is aimed at observing and analyzing potential customer's reaction to a new product before it's introduced to the market.
Answer:
$2.18 per machine hour
Explanation:
The calculation of Indirect material cost is shown below:-
Flexible budget indirect material = variable cost + indirect materials cost
= $30,444 + $8,142
= $38,586
Cost per machine hour for indirect material = Flexible budget indirect material ÷ Company machine hours
= $38,586 ÷ $17,700
= $2.18 per machine hour
Answer:
A. Corporate
Explanation:
Corporate bonds are debt securities(loans) issued by public and private corporations. They present an investment opportunity to the investor(the purchaser of the bond). Corporations with a good reputation with a solid financial background use bonds to raise additional capital for business use.
The corporation assures the investor of a regular interest payment of the amount borrowed. At maturity, the investor gets back the principal amount. Bonds issued by private and public companies are referred to as corporate bonds, just as the name suggests.
Answer: a. The common-size balance sheet allow for comparison of firms with different levels of total assets by introducing a common denominator.
Explanation: The common-size balance sheets are those balance sheets in which the structure of each part of the assets, liabilities and equity major categories are detailed, each one with their absolute value (the amount) and their relative value (percentage of the total).
For example, assets are 5 million dollars, capital 3 million and liabilities 2 million. Cash is 1 million. So in the common-size balance sheet you will see Cash (or liquidity) for 1 million dollars and 20%.
This way you can compare two or more firms with different ammount of assets (one with 8 million with one of just 1 million, for example) as indicating which is the percentage of liquidity for each one, or their percetage of liabilities, etc. The relative value, which is made in the common-size balance sheets makes this comparisson possible.
