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juin [17]
3 years ago
6

West Corp. issued 14-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds

currently sell for 103 percent of par value, what is the YTM?
Business
1 answer:
pickupchik [31]3 years ago
3 0

Answer:

the YTM is 9.38 %.

Explanation:

Bond Prices in most countries is expressed per $100. We shall use this as the Price for the bond in question.

Then the Yield to Maturity (YTM), r of the Bond can be determined as follows

Pv = - $103

pmt = ($100 × 9.80) ÷ 2 = $4.90

p/yr = 2

n = (14 - 2) × 2 = 24

Fv = $100

r = ?

Using a Financial Calculator,  the Yield to Maturity (YTM), r is 9.38 %

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Data related to the inventories of Kimzey Medical Supply are presented below:
DedPeter [7]

Answer:

c. $155.

Explanation:

Kimzey Medical Supply's merchandise inventory:

                  Surgical equip.  Surgical supplies  Rehab equip.  Rehab  supplies

Selling price          $335              $195                   $415                    $240

Cost                       $245              $165                   $325                   $237

Replacement         $315              <u>$155</u>                    $310                    $233

cost

Net RV                   $275              $175                    $375                   $200

If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $155 because the replacement cost  (or market price) is lower than the historical cost or the net realizable value.

When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost, replacement (or market) price or net realizable value.

3 0
3 years ago
Using the FIFO method, the cost of inventory at the end is $15,500, and the market price is $14,500. Using the lower-of-cost-or-
Sindrei [870]

Answer:

Inventory Cost = $14,500

Explanation:

Using the lower of cost or market method implies firstly valuing the inventory at the purchased cost (historical cost). But as the value of a good can change and if the price at which the inventory can be sold falls below its net realizable value the loss (and new value) must be recorded. It is a method for adjusting asset values in subsequent reporting periods.

5 0
3 years ago
The term inflation is used to describe a situation in which
Alex73 [517]

Answer: The correct answer is Choice A.

Explanation: The term inflation is used to describe a situation in what the overall level of prices in the economy is increasing.

The measure of inflation is the Inflation Rate. This is the annualized percentage change in a general price index (usually the consumer price index) over time.

3 0
3 years ago
The new-product process starts with new-product strategy development. Place the steps that follow this one in order. (In other w
nalin [4]

Answer:

1. New-product strategy development.

2. Idea generation.

3. Screening and evaluation.

4. Business analysis.

5. Development.

6. Market testing.

7. Commercialization.

Explanation:

New product strategy is the first one as described and the remaining are briefed below:

Idea Generation: This steps creates the idea for how the product shall be created.

Screening and evaluation: This helps in evaluating the idea generated and comparing it with the practical manner.

Business Analysis aims at analyzing the business prospect of the new product.

Development is done once all of the above steps are in affirmation.

Market testing is done after the development about the market captured by the product or to be captured.

Commercialization basically aims at the proper introduction of the product in the market.

8 0
3 years ago
Shauna Lewis Company expects the following for 2018​: times Net cash provided by operating activities of $ 140 comma 000. times
mihalych1998 [28]

Answer:

Explanation:

Net cash provided by operating activities 140,000

Less: Capital expenditures -81,000

Less: Cash dividends paid -10,000

Free cash flow 49,000

3 0
3 years ago
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