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ANEK [815]
3 years ago
15

Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre

nt market price of $640. What is the pretax cost of debt? (Use semiannual compounding.)
Business
1 answer:
AnnZ [28]3 years ago
3 0

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × (1+\frac{r}{n})^{nt}

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × (1+\frac{r}{2})^{2\times8}

or

1.5625 = (1+\frac{r}{2})^{16}

or

(1+\frac{r}{2}) = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

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Answer:

The Cartoon depicts the Head of Government of the USA with hands tied being pulled from 4 different ends of the world

2 Nations stand out, England & Japan who were part of the 4 permanent Member States, (Italy and France make up the balance); whilst European Nations and Foreign Governments are depicted to also pulling at the President.

The Cartoonist opposes U.S Participation in the League of Nations

Explanation:

This is a Post World War 1 Cartoon

As part of the Versailles Treaty from the Paris conference of 1919 a League of Nations was to be formed comprising of the World Powers at the time. Members were expected to respect the sovereignty of other countries and completely discourage the deployment of Military campaigns against other countries

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The Isolationist movement was specifically against the item X of the League's covenant which required Member nations to support other Nations in the face of an aggression from another. The interpretation of this was that the USA would be completely surrendering its sovereignty and would remain a tool for International Conflicts resolution by deploying men and war equipment as was the case with World War I.

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3 years ago
TB Problem Qu. 1-288 Balerio Corporation's relevant ...Balerio Corporation's relevant range of activity is 8,000 units to 11,000
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The relevant range of activity is 8,000 units to 11,000 units.

When it produces and sells 10,000 units:

Direct materials $ 6.40

Direct labor $ 3.20

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 14.40

Fixed selling expense $ 2.80

Fixed administrative expense $ 2.00

Sales commissions $ 0.80

Variable administrative expense $ 0.70

A) product costs= Direct material + direct labor + manufacturing overhead

Product cost= (6.40*10000) + (3.20*10000) + (1.5*10000) + (14.40*10000)= $255000

B) Q= 9

Variable cost= direct material + direct labor + variable manufacturing overhead + variable sales comission + variable administrative expense

Variable cost= 6.40 + 3.20 + 1.5 + 0.80 + 0.70= $12.60

C) Total variable cost= 12.60*9000=$113400

D) Contribution margin= Price - unitary variable cost

CM= 19.20 - 12.60= $6.6

E) 10,001 units are still is the relevant range. Therefore the incremental costs are the variable cost.

If it sells 1 unit more, the manufacturing cost will increase in the proportion of direct material, direct labor and variable manufacturing overhead.

6.40+3.2+1.5= $11.1

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3 years ago
Yes! Assuming Economia's aggregate supply curve is upward sloping, when the aggregate demand curve shifts rightward, this will:
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When the aggregate demand curve shifts rightward, this will increase Economia's real output and the price level.

<h3>What happens when the aggregate demand shifts rightward?</h3>

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When  aggregate demand curve shifts to the right, there would be an increase in the real output and the price levels.

To learn more about the demand curve, please check: brainly.com/question/25140811

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Which of the following types of product sales are most
xeze [42]
Stereo speakers, new car, furniture, an expensive watch
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2 years ago
Read 2 more answers
Determine the finance charge on a 8,000 loan with a monthly payment of 162,80 for 60 months
Fittoniya [83]
Well 162,80 divided by 8,000 is 2.035 so thats going to be your answer hope this helps
5 0
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