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Delicious77 [7]
3 years ago
7

The effective interest amortization method: Multiple Choice Allocates bond interest expense over the bond's life using a changin

g interest rate. Allocates bond interest expense over the bond's life using a constant interest rate. Allocates a decreasing amount of interest over the life of a discounted bond. Allocates bond interest expense using the current market rate for each interest period. Is not allowed by the FASB.
Business
1 answer:
Alex_Xolod [135]3 years ago
5 0

Answer:

The correct option is B,allocates bond interest expense over the bond's life using a constant interest rate.

Explanation:

Assuming a bond was issued for $20,000,000 with stated interest rate(coupon interest rate) of 5% and yield to maturity of 7%,in calculating the bond interest expense,we simply apply the  yield to maturity of 7% to the bond outstanding balance in each year.

From the above, it is clear that the percentage applied to bond outstanding balance over relevant years remains the same,hence option B is absolutely correct

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A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by upper c equals 0.
Fantom [35]

Answer:

The cost per month is increasing at a rate $365.

Explanation:

Differentiation Formula

  • \frac{d}{dx}(x^n)= nx^{n-1}  
  • \frac{d}{dx}(a)=0             [ where a is a constant]
  • \frac{d}{dx}(ax^n)=a \frac{d}{dx}(x^n)= anx^{n-1}

Given that,

A manufacturer of handcrafted wine racks has determined that the cost to produce x units per month is given by

c=0.2x^2+10,000.

Again given that,

the rate of changing production is 13 unit per month

i.e \frac{dx}{dt}=13

To find the cost per month, we need to find out the value \frac{dc}{dt} when production is changing at the rate 13 units per month and the production is 70 units.

c=0.2x^2+10,000

Differentiating with respect to t

\frac{d}{dt}(c)=\frac{d}{dt}(0.2x^2)+\frac{d}{dx}(10,000)

\Rightarrow \frac{dc}{dt}=0.2\frac{d}{dt}(x^2)+\frac{d}{dx}(10,000)

\Rightarrow \frac{dc}{dt}=0.2\times 2x^{2-1}\frac{dx}{dt}+0

\Rightarrow \frac{dc}{dt}=0.4x\frac{dx}{dt}

Plugging \frac{dx}{dt}=13

\Rightarrow \frac{dc}{dt}=0.4x\times 13

\Rightarrow \frac{dc}{dt}=5.2x

\frac{dc}{dt}|_{x=70}=5.2\times 70 [ plugging x=70]

            =364

[ The unit of c is not given. Assume that the unit of c is dollar.]

The cost per month is increasing at a rate $365.

4 0
3 years ago
Which Command Staff member serves as the incident command s point of contact for organizations not included in the Incident Comm
sp2606 [1]

Answer:

The correct answer is d) Liaison Officer

Explanation:

The term liaison officer refers to a person who connects organizations in order to communicate the movements that provide mutual performance. Usually, the liaison officers are employed to manage and improve the resources of one organization by another. The liaison officers are used by some governmental agencies, nongovernmental organizations, and private entities.

6 0
3 years ago
Read 2 more answers
The image shows a bar graph.
svetoff [14.1K]

Answer:

showing change in a community’s average median age over a century

showing how the world’s shark population has changed over 50 years.

comparing the number of men and women who earned engineering degrees in a decade

Explanation:

5 0
3 years ago
Read 2 more answers
Mike and Marianne pulled their resources together to open a coffee place. They each put $20,000 and also took a bank loan of $20
snow_tiger [21]

Answer:

WACC= 9.8%

Explanation:

<em>The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool. </em>

After-tax cost of debt = (1- tax rate) × before tax cost of debt  

= (1-0.3)× 8% = 5.6%

Total Equity = 20,000× 2= 40,000.

Bank loan = 20,000

Total value fund = 40,000 + 20,000 = 60,000

WACC= 5.5%× (2/6)  + 12%× (4/6) = 9.8%

WACC= 9.8%

     

5 0
3 years ago
Stanley has held the same job for several years, and though he has had quite a bit of success and makes a very good salary, he h
olasank [31]

Answer:

Deceleration stage

Explanation:

Stanley has held the same job for several years, and though he has had quite a bit of success and makes a very good salary, he has begun to disengage from his work. He is less emotionally involved, and feels like he should start thinking about retirement. According to the career development theory, Stanley is in the deceleration stage.

8 0
3 years ago
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