Answer:
10.46%
Explanation:
Data provided in the question
NPER = 4 years
Price of the bond is $956.12
Yield to maturity is 11.43%
Coupon rate = 10%
We assume the face value be $1,000
So the coupon payment is
= Face value × Coupon rate
= $1,000 × 10%
= $100
Now the current yield on this bond is
= Coupon payment ÷ Price of the bond
= $100 ÷ $956.12
= 10.46%
Answer:
$2.4 million
Explanation:
Given that
Earnings before interest and tax (EBIT) = 3 million
Depreciation = 1.2 million
Tax rate = 40%
Capital expenditure + Net operating working capital (NOWC) = 0.6 million
Recall that
Free cash flow = EBIT (1 - T) + depreciation - ( Capital expenditure + NOWC)
Therefore,
FCF = 3 (1 - 0.4) + 1.2 - 0.6
= 1.8 + 1.2 - 0.6
= 3.0 - 0.6
= $2.4 million
Answer:
Dr. Cr.
Cash $107,850
Bond Payable $100,000
Premium on Bond Payable $7,850
Explanation:
When the Bond is issued on the price more than its face value, the exptra amount from face value received is called Bond Premium.
Bond Face value = $100,000
Issuance price = $107,850
Premium Paid =$107,850 - $100,000 = $7,850
Answer:
0.002244
Explanation:
We will first calculate the expected return. It is: E(r)
E(r) = (0.10 0.21) + (0.70 0.11) + (0.20 0.03)
= 0.104
Var = 0.10 (0.21 - 0.104)2 + 0.70 (0.11 - 0.104)2 + 0.20 (0.03 - 0.104)2
= 0.002244
Answer:
= $ 650,000.
Explanation:
<em>Gross profit </em><em>is the profit made after subtracting the cost of the goods were sold (cost of inputs) to generate the revenue.</em>
Gross profit = Revenue - cost of sales
Cost of sales = opening inventory + production cost - closing inventory
Cost of sales = 50,000 + 2,200,000 - 150,000
= $2,100,000.
Gross profit = $2,750,000 - $2,100,000.
= $ 650,000.