Vicarious liability is direct liability. a. True b. False

What is the price of a perpetual bond that pays a $45 per year into perpetuity, and has a 3.5% yield to maturity (YTM)

snow_tiger [21]

Answer:

Price =$1,285.71

Explanation:

A perpetual bond is that which pays a fixed amount of interest income for the foreseeable future. It issuer does not always have an obligation for redemption under the terms of loan contract.

The price of perpetual bond can be determined as the present value of a perpetuity. An perpetuity is an annuity that pays a fixed amount of cash flow for a certain number of years

PV = A/r

PV- price of bond- ?

A- annual interest - 45

r- Yield to maturity- 3.5%

Price = 45/0.035=1,285.714

Price =$1,285.71

6 0

4 years ago

Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Un

charle [14.2K]

Answer:

Equivalent Units of Production :

(1) Materials = 298000

(2) Conversion Costs = 284400

(3) Total = 582400

Explanation:

The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.

Step 1 : Determine Units Completed and Transferred to Finished Goods

Units in Process = Units Output

Units In Process 298000

Less Closing Work In Process 34000

Completed and Transferred 264000 (Balancing figure)

Step 1 : Determine Equivalent Units for each input component

Materials:

Completed and Transferred 100% = 264000×100%= 264000

Closing Work In process 100% = 34000×100%= 34000

Total = 298000

Conversion Costs:

Completed and Transferred 100% = 264000×100%=264000

Closing Work In process 60%=34000×60%=20400

Total =284400

5 0

3 years ago

Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respec

Pepsi [2]

Answer:

$33,445.44

Explanation:

The future value of an investment is its worth at a future date if the investment is done at a specific interest rate compounded yearly for certain number of years

It is computed as follows:

FV = PV (1+r)^n

FV = Future Value, PV = present value, r- interest rate, n- number of years

Future value of $7500 after 3 years:

FV = 7500× (1.08)^3 = 9,447.84

Future Value of $9000 after 2 years:

FV = 9000 × (1.08^2) = $10,497.6

Future value of $12,500 after 1 year:

FV = 12500× 1.08 = $13,500

The future value of these cashflows at the end of year 5

= 9,447.8 + 10,497.6 + 13,500

= $33,445.44

7 0

3 years ago

Read 2 more answers

Jane grows apples on land she inherited from her grandmother. She incurs explicit costs of $200 for the trees and $60 for fertil

Leto [7]

Answer:

Economic profit= $24,740

Explanation:

Giving the following information:

Jane grows apples on land she inherited from her grandmother. She incurs explicit costs of $200 for the trees and $60 for fertilizers. The market price of apples is $36 per box. At this price, Jane produces 1,500 boxes of apple.

Suppose her land is worth $9,000 and her labor is worth

$20,000.

Sales= 54,000

Fixed costs= 260

Opportunity cost= 29,000

Economic profit= $24,740

4 0

4 years ago

Suppose GDP in this country is $900 million. Enter the amount for consumption. National Income Account Value (Millions of dollar

Rudiy27

Answer:

Consumption ( C ) = $325 million

Explanation:

Given:

GDP = $900 million:

Government Purchases ( G ) = $250 million

Taxes minus Transfer Payments ( T ) = $325 million

Investment ( I ) = $275 million

Find:

Consumption ( C )

Computation:

GDP = C + I + G

$900 million = Consumption ( C ) + $250 million + $325 million

Consumption ( C ) = $900 million - [$250 million + $325 million]

Consumption ( C ) = $325 million

3 0

4 years ago