LinkedIn is an example of a(n). app?

A coupon bond that pays interest of 4% annually has a par value of $1,000, matures in 5 years, and is selling today at $785. The

jarptica [38.1K]

Answer:

Actual Yiel to maturity is 9.3%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 4% = $40

Selling price = P = $785

Number of payment = n = 5 years

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $40 + ( $1,000 - $785 ) / 5 ] / [ ( 1,000 + $785 ) / 2 ]

Yield to maturity = [ $40 + $43 ] / $892.5 = $83 /$892.5 = 0.0645 = 0.093%

3 0

3 years ago

Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amou

11Alexandr11 [23.1K]

Answer:

$306,000

Explanation:

The formula and the computation of the cost of good sold is shown below:

Cost of goods sold = Opening balance of merchandise inventory + Purchase made - ending balance of merchandise inventory

= $85,000 + $323,000 - $102,000

= $306,000

Basically we have applied the above formula to find out the cost of goods sold

7 0

3 years ago

Gdp is $8 trillion. if consumption is $5 trillion, investment is $1 trillion, and government purchases are $2 trillion, then:___

Sedaia [141]

Exports are equal to imports when Gdp is $8 trillion. if consumption is $5 trillion, investment is $1 trillion, and government purchases are $2 trillion

Given -

Gross Domestic Product = $8 trillion

Consumption Spending = $5 trillion

Investment Spending = $1 trillion

Government Purchases = $2 trillion

The GDP is calculated as follows -

Gross Domestic Product = Consumption + Investment + Government Purchases + Net Exports

Since other components are given, net exports can be calculated.

Net Exports = Gross Domestic Product - Consumption - Investment - Government Purchases

Net Exports = 8 - 5 - 1 - 2

Net Exports = 0

Therefore, Exports are equal to Imports

Learn more about GDP or Gross Domestic Product here

brainly.com/question/14768180

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4 0

2 years ago

Suppose the government has imposed a price ceiling on sliced sandwich bread. Which of the following events could transform the p

oksano4ka [1.4K]

Answer:

A decrease in the price of unsliced bread, which people consider a substitute for sliced bread.

5 0

3 years ago

Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at an interest rate of rd = 9%,

solniwko [45]

Answer:

cost of common equity = 14.46%

WACC = 11.29%

accept = Project A

Explanation:

Cost of common equity is the return that is required by Holders of Common Stock.

The available details can be used to calculate the cost of common equity using the Dividend Growth Model as follows :

Cost of common equity = (Next year`s Dividend / Current Market Price of a Stock) + Expected Growth

= ($2.20/$26)+6%

= 14.46%

WACC is the minimum return that a project must offer before it can be accepted.It shows the risk of the company.

Cost of Debt = Market Interest Rate × (1 - tax rate)

= 9.00% × (1-0.40)

= 5.40%

Capital Source Weight Cost Total

Debt 35% 5.40% 1.89%

Common Equity 65% 14.46% 9.40%

Total 100% 19.86% 11.29%

Therefore WACC is 11.29%

When evaluating projects, Compare the Project`s Internal Rate of Return (IRR) to the WACC.

Project A

IRR 12% > WACC 11.29%

Therefore Accept

Project B/S

IRR 11% < WACC 11.29%

Therefore Do Not Accept

3 0

3 years ago