Answer:
Explanation:
a)
The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.
b)
If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.
c)
Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant
Your answer is A. Paul is correct because the government always withholds money for taxes due from all incomes.
Answer:
The answer is B.
Explanation:
Variance is the difference between the expected sales(revenue), price, material quantity, material cost(expense) and the actual sales, price or material quantity.
Sometimes, expected or budgeted sales or price might be higher than actual sales or price, if this happens the variance is an unfavorable one.
And if it is the actual that is higher or more than the budgeted or expected sales or price, we say it is a favourable variance.
Answer:
each shareholder has $250,000 of the dividends.
Explanation:
At the end of the year, just before the distribution, each shareholder's basis is:
= $400000 + 10000 + 50000
= $550,000
after the distribution, each shareholder's basis is:
= 300000 + 200000
= $500000
therefore, each shareholder has $250,000 of the dividends.
Answer:
$6.87
Explanation:
Calculation for what The contribution margin per unit is:
Selling price per unit $12.26
LessVariable cost per unit ($5.39)
Contribution margin per unit $ 6.87
($12.26-$5.39)
Therefore The contribution margin per unit is: $6.87
