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Inga [223]
3 years ago
15

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 7 years to maturity, and an 8.5% YTM.

What is the bond's price? Round your answer to the nearest cent.
Business
1 answer:
kozerog [31]3 years ago
3 0

Answer:

$922.07

Explanation:

You can solve this question using a financial calculator. I'm using (TI BA II plus)

Since it is Semiannual coupon, adjust the YTM to semi annual rate and multiply  7 years by 2 since we have 2 semi annual periods per year.

Total duration of investment ;N = 7 * 2 = 14

Interest rate; I/Y = 8.5%/2 = 4.25%

Face value; FV = 1000

Semi annual Coupon Payment ; PMT = (7%/2)*1000 =35

then CPT PV = $922.07

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Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe. T
Iteru [2.4K]

Answer: c. unrealistic performance goals

Explanation:

From the question, we are informed that Bethany works for FastFashion Inc. which has set the same sales target for all employees in their 550 stores across the globe and that the company fails to take into account any environmental constraints which might hamper sales and to avoid being penalized, employees often falsify their sales reports.

Based on the scenario above, the issue triggering the employees' unethical behavior is unrealistic performance goals. Since the employees don't meet their target, they falsify their sales report.

8 0
3 years ago
Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE
Wewaii [24]

Answer:

13.56%

Explanation:

For the computation of return in equity first we need to follow some steps which are shown below:-

D/A = Debt ÷ Total assets

Debt = $200,000 × 65%

= $130,000

Interest expense = $130,000 × 8%

= $10,400

Total assets = Total liabilities + Total equity

Total equity = $200,000 - $130,000

= $70,000

Net income = (EBIT - Interest expense) × (1 - Tax rate)

= ($25,000 - $10,400) × (1 - 0.35)

= $9,490

ROE = Net income ÷ Equity

= $9,490 ÷ $70,000

= 13.56%

7 0
3 years ago
A bank reconciliation should be prepared when an employee is suspected of fraud. to explain any difference between the depositor
IrinaK [193]

Answer:

to explain any difference between the depositor’s balance per books with the balance per bank

Explanation:

The goal of this process is to ascertain the differences between the banks records and the depositor’s records and make accounting changes as deemed appropriate. There is a general flow that is used to make the correcting entries:

1. The process flow starts with the bank’s ending cash balance

2. Add any deposits made by the company to the bank that are in transit

3. Deduct any cheques that are uncleared by he bank

4. Add or deduct any other items available as necessary

5. In the company bank records, once again start with the ending balance

6. Deduct any bank service fees, penalties and NSF (Non-Sufficient Funds) cheques.

7. Add interests earned

At the end of this process, it is likely that both accounts would be equal and tally.

4 0
3 years ago
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one depa
kherson [118]

Answer:

EU materials:    434.040‬

EU conversion: 412,632

Explanation:

W/a method count the complete units plus the percnetage of completion in the ending work in process intventory.

Materials:

transferred-out (completed) 411,000

ending WIP inventory

                    32,000 x 72% = 23,040‬

Equivalent untis materials:  434.040‬

Conversion:

transferred-out (completed) 411,000

ending WIP inventory

                    32,000 x 51% =     1,632

Equivalent untis conversion: 412,632

5 0
3 years ago
The ratio of cash to monthly cash expenses can be used to _____. a.assess how long a company with negative cash flows from inves
sp2606 [1]

Answer:

The correct option is C. which is <em>assess how long a company with positive cash flows from financing activities can continue to operate</em>

Explanation:

<em>The ratio of cash to monthly cash expenses can be used to make assessment of a company whether how long it can determine without additional financing and positive cash flows generated from operations.</em>

The formula of The ratio of cash to monthly cash expenses

= Cash s of year end ÷ Monthly Cash Expenses

5 0
4 years ago
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