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elixir [45]
3 years ago
8

Wine and Roses, Inc. offers a 6.0 percent coupon bond with semiannual payments and a yield to maturity of 6.91 percent. The bond

s mature in 12 years. What is the market price of a $1,000 face value bond?
$1,410.62
$1,442.55
$926.59
$1,023.89
$1,484.04
Business
1 answer:
Gemiola [76]3 years ago
3 0

Answer:

$926.59

Explanation:

C =Annual coupon Payment = $1,000 x 6% = $60

YTM = 6.91% = 0.0691

t = Number of year = 12 years

m = number of period in one year = semiannual = 2

Face value = $1,000

Bond's Market Price = (C / YTM)x[1 - ( 1 + YTM/m )^-tm] + [ FV x ( 1 + YTM/m)^-tm]

Bond's Market Price = (60 / 0.0691)x[1 - ( 1 + 0.0691/2 )^-12x2] + [ $1,000 x ( 1 + 0.0691/2)^-12x2]

Bond's Market Price = $868.31 x [1 - ( 1.03455 )^-24] + [ $1,000 x (1.03455)^-24]

Bond's Market Price = $484.04 + 442.55 = $926.59

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You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two
yaroslaw [1]

Question Completion:

Existing Store  Revenue 2nd Store Cannibalization Revenue Net Revenue

                                        Revenue         Estimate      Drop         Increase for

                                                                                                      Market

Los Angeles   1,450,000  1,570,000         10%           145,000    1,425,000

Houston         1,400,000   1,475,000        25%          350,000    1,125,000

Orlando         2,100,000   2,155,000        30%          630,000   1,525,000

Atlanta           1,600,000   1,780,000         55%         880,000     900,000

Chicago         1,950,000   1,730,000         40%         780,000     950,000

San Diego    3,400,000  3,090,000          10%         340,000  2,750,000

Portant          1,000,000   1,075,000         25%         250,000     825,000

Dallas           2,000,000   1,850,000         60%       1,200,000    650,000

Boston         2,300,000  2,200,000         50%        1,150,000  1,050,000

1. Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?

San Diego and Orlando

Atlanta and Dallas

Orlando and Dallas

San Diego and Portland

Dallas and Portland

2. What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 30%

Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.

San Diego and Orlando

San Diego and Los Angeles

Chicago and Los Angeles

Chicago and Portland

San Diego and Portland

Answer:

Better Beans Coffee Company

1. San Diego's $2,750,000 and Orlando's $1,525,000 presented the highest net revenue increases when adding a second store.

2. Based on management's criteria that the cannibalization rate for the existing store should be less than 30%, San Diego with 10% and Los with 10% Cannibalization rates should be chosen.

Explanation:

Cannibalization Rate is a measure of the impact of new products or the presence of new stores on sales revenue for existing products or stores.  Cannibalization happens when a business, like the Better Beans Coffee Company, opens a new store in a town where there is an existing store. It can also happen when Better Beans releases new coffee products.  Consumers' attention and demand for existing products can decrease, as a switch to new products or new stores takes place.

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A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of market
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Answer:

undifferentiated

Explanation:

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When a buyer returns merchandise purchased for cash, the buyer will record the transaction as a:____
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Answer:

c. Debit to Cash and a credit to Merchandise Inventory

Explanation:

When a buyer returns goods these are return outwards,

The correct entries to record them would be to debit cash as goods have been returned and credit the merchandise purchased so,

Debit cash account with the amount of goods returned

Credit Merchandise inventory with the amount of goods returned.

Hope that helps.

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Answer:

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C) Hard-working.

D) Creative.

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a. Persistent: The person should be trying his best o achieve it rather than escape from it

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c. He should be creative or we can say who bring innovative ideas to the firm so that the people get attracted to the company products so that the sale of the firm could rise up

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Becca, an office manager for a small construction company, met with representatives from Xerox and Minolta, along with the presi
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