Answer:
b. 1,062.81
Explanation:
the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:
where: principal as said before is the value lended, coupon is the rate of interest paid, i is the interest rate and n is the number of periods
so applying to this particular exercise, as it is not said we will assume that 6% and 7% are interest rate convertible seminually, so the price of the bond will be:
price=1,062.81
take into account that here we are asked about semianually payments, so in 8 years there are 16 semesters.
Answer:
Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH
Explanation:
To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:
(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous
$1,800,000 overhead / 38,070 DLH = 47,281323877
the overhead per hour is $47.28
overhead per product:
47,281323877 x 0.81 = 38,29787234 = <u><em>38.30</em></u>
<span>it is true that under the specific charge-off method, a deduction for a bad debt is taken when the debt is determined to be worthless. </span>
Answer:
These are the options for the question:
a) A negative cash flow from operating activities
b) A negative cash flow from investing activities
c) A significant positive cash flow from financing activities
And this is the correct answer:
a) A negative cash flow from operating activities
Explanation:
Declining companies are characterized by a lack of revenue from regular operating activities.
If cash flow from operating activities is negative, it means that the company is not making enough money to meet its obligations, and that will likely cease to exist in the near future unless big changes happen.
