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3 years ago

Economic growth is _____.

Business

1 answer:

erica [24]3 years ago

5 0

economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.

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Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of $1,038. The

Dmitriy789 [7]

Answer:

Coupon rate is 6.5%

Explanation:

Bond price is the sum of present value of coupon payment and face value of the bond. If the price is available the coupon payment can be calculated by following formula

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

$1,038 = C x [ ( 1 - ( 1 + 6.1%/2 )^-14.5x2 ) / 6.1%/2 ] + [ $1,000 / ( 1 + 6.1%/2 )^14.5x2 ]

$1,038 = C x [ ( 1 - ( 1 + 0.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1 + 0.0305 )^29 ]

$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0.0305 ] + [ $1,000 / ( 1..0305 )^29 ]

$1,038 = C x [ ( 1 - ( 1.0305 )^-29 ) / 0..0305 ] + [ $1,000 / ( 1.0305 )^29 ]

$1,038 = C x 19.068 + $418.42

$1,038 - $418.42 = C x 19.068

$619.58 = C x 19.068

C = $619.58 / 19.068

C = $32.49

Coupon rate = 32.49 / $1,000 = 3.25% semiannual

Coupon rate = 3.25% per semiannual x 2 = 6.5% per year

3 0

3 years ago

Taxation of Business Entities, 2016 edition7-65.) Wolverine Corporation made a distribution of $500,000 to Jim Har Inc. in par-t

marusya05 [52]

Answer:

a. Dividend

b. $500,000

Explanation:

a. As in the given case, the character of any income or gain recognized is the dividend of $500,000 which eligible him to avail 100% deduction of the dividend amount

b. The reduced amount would be lower of the distributed amount or 50% of Total E&P

Distributed amount is $500,000

And, the 50% of total E&P is = $8,000,000 × 50% = $4,000,000

So, the lesser amount is $500,000 which is reduced its total E&P

5 0

3 years ago

How much of a good is offered for a sale at a specific price?

Sindrei [870]

It is indeed quantity supplied and the economists define it as the amount of a good that sellers are willing to sell and are able to sell. One of the movements related to the quantity supplied syas that when there are rising prices then there are new firms into a market and add to the quantity supplied of a good. Quantity supplied can be measured with a Market supply curve or the <span>Elasticity of supply.</span>

8 0

3 years ago

Read 2 more answers

Consider a 30-year 8 percent bond, paying coupon semi-annually, and selling for $896.81 today (note that the yield is 9 percent)

Lemur [1.5K]

Answer: See explanation

Explanation:

Based on the information given, we should note that the bond will trade at par at $1000 after six month

The holding period return will be:

= [ P1 - P0] / P0

= [ 1000 - 896.81 ] / 896.81

= 103.19 / 896.81

= 0.1151

= 11.51%

Then, the Annualized rate will be:

= HPR at 6 Months / 6/12

= HPR × 12 / 6

= 11.51% × 12 / 6

= 11.51% × 2

= 23.01%

Annualized Rate = 23.01%

7 0

3 years ago

Indigo Company sold 10,000 Super-Spreaders on during 2017, at a total price of $885,200, with a warranty guarantee that the prod

guapka [62]

Answer:

Indigo Company

Sales Revenue = $885,200

Cost of goods sold = $350,500

Warranty Expense = $65,100

Unearned warranty revenue = $25,200

Warranty liability = $49,500 ($65,100 - $15,600)

Cash = $544,300 ($885,200 + $25,200 - $350,500 - $15,600)

Explanation:

a) Data and Calculations:

Income Statement for the year ended December 31, 2017 (Partial)

Sales Revenue $885,200

Cost of goods sold 350,500

Gross profit $534,700

Warranty Expense 65,100

Net income $469,600

Balance Sheet as of December 31, 2017 (Partial)

Assets:

Cash $544,300

Liabilities:

Retained earnings $469,600

Unearned warranty revenue 25,200

Warranty liability 49,500

Total liabilities $544,300

7 0

3 years ago