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ZanzabumX [31]
3 years ago
14

New Business Ventures, Inc., has an outstanding perpetual bond with a coupon rate of 11 percent that can be called in one year.

The bond makes annual coupon payments and has a par value of $1,000. The call premium is set at $125 over par value. There is a 60 percent chance that the interest rate in one year will be 13 percent, and a 40 percent chance that the interest rate will be 9 percent. If the current interest rate is 11 percent, what is the current market price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Virty [35]3 years ago
8 0

Answer:

961.88

Explanation:

First, examine whether the bond will be called if interest rate falls to 9%. The call price is

1,000 + 125 = 1,222. Bond price at 9% yield will be

$110/0.13 > call price of 846.15

Bond will be called. The price of the callable bond therefore is:

=+[.60(846.15)+.40(1125)]/1.11+110/1.11 =961.88

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The following data relate to direct labor costs for the current period:
mr Goodwill [35]

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs     9,000 hours at $5.50

Actual costs        8,500 hours at $5.75

we have two formulas to calculate  for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 =  $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the  actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

3 0
3 years ago
Justin, a human resources manager for xyz company, commits 20% of this year's budget to develop a new program for valuing divers
rewona [7]
Human Resource Manager
4 0
3 years ago
Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothi
natulia [17]

Answer:

Klean Fiber Company

Incremental Analysis for the Special order of 250,500 units of Y-Go undergarments:

Direct materials                                  $2.04         $511,020

Direct labor                                           0.40          100,200

Variable manufacturing overhead       1.04         260,520

Fixed manufacturing overhead            1.02         255,510

Total costs                                         $4.50      $1,127,250

Fixed manufacturing overhead           1.02          255,510

Incremental costs                             $3.48         $871,740

Explanation:

a) Data:

Full Capacity = 1,031,000

The per unit and the total costs at full capacity for Y-Go:

                                                 Per Undergarment       Total

Direct materials                                  $2.04         $2,103,240

Direct labor                                           0.40              412,400

Variable manufacturing overhead       1.04           1,072,240

Fixed manufacturing overhead            1.44           1,484,640

Variable selling expenses                    0.34            350,540

Totals                                                  $5.26       $5,423,060

b: In her decision to accept or reject the special order for 250,500 units of Y-Go undergarments by the U.S. Army, the Klean Fiber Company will only consider the relevant incremental unit cost of $3.48 and not the whole unit cost of $5.26.  The $3.48 cost excludes the fixed overheads or the selling and administrative expenses.

8 0
3 years ago
If you decide to advertise in a newspaper, which tip could be used to help you write an effective and appealing ad?
Mandarinka [93]

If you decide to advertise in a newspaper, the tip that could be used to help you write an effective and attractive ad is to create a headline that catches your target audience's attention, as this is the first contact with your ad that may cause interest in advertising.

Some tips for writing an effective ad in a newspaper are:

  • Determine the target audience
  • Determine ad content
  • Build a good layout
  • Offer unique opportunities
  • Call consumers to action

Therefore, it is essential that when choosing the channel where your ad will be published, you verify that it is the most appropriate channel to attract the attention of your audience.

In a newspaper, it is effective to use advertisements that portray urgency, opportunity, and calls to action.

Find out more about advertise here:

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3 0
2 years ago
what are the similarites and differences between the business ventures of the wander girls and roxanne quimby
Dimas [21]

People are known to engage in business every day. The answers to the question is below;

<h3>The similarities  between the business ventures of the Wander Girls and Roxanne Quimby</h3>

  • Their businesses are both founded by women.
  • They both encourages women in business ventures and other areas.
  • They both encourages women to take care of themselves and not neglect themselves.
  • They are advocate for self love for women.

<h3>The differences between the business ventures of the Wander Girls and Roxanne Quimby.</h3>

  • Wander Girls are into travels specifically for women while Roxanne Quimby is into personal-care brand.
  • Wander Girls is into service delivery while the other is into product delivery.

Roxanne Quimby is famous as she sell Burts Bees, a natural personal care brand. Elisha Brock, is known to be the founder of Wander Girls. It is an online community that aids and encouraging women to take themselves out by travel with the right resources and person.

Learn more about  Business from

brainly.com/question/24553900

8 0
2 years ago
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