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jolli1 [7]
2 years ago
14

On January 1, a 6-year, $5,000, non-interest-bearing note payable was issued when the market rate of interest was 8%. The presen

t value of the note is
Business
1 answer:
Thepotemich [5.8K]2 years ago
3 0

Answer:

PV= $3,150.85

Explanation:

Giving the following information:

Number of periods (n)= 6 yeras

Future value (FV)= $5,000

Interest rate (i)= 8%

<u>To calculate the present value, we need to use the following formula:</u>

FV= PV*(1+i)^n

Isolating PV:

PV= FV/(1+i)^n

PV= 5,000/(1.08^6)

PV= $3,150.85

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Steve has used the foot-in-the-door <span>technique to induce compliance.
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7 0
2 years ago
Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM
serious [3.7K]

Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

PMT= 40 (80 / 2)

I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

conclusively, dirty price = 948.89 + 12.53 = 961.42

3 0
3 years ago
Suppose Cook Plus manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $ 22. Cook Plus projects sales
amid [387]

Answer:

Production budget = 835

Explanation:

<em>T</em><em>he production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.  </em>

Production = Sales budget + closing inventory - opening inventory

Inventory at the end of July = 40%×650= 260

Opening inventory = 75

Sales budget = 650

Production budget = 650+ 260  - 75= 835

Production budget = 835

3 0
3 years ago
The issuer of a 5% common stock dividend to common stockholders should transfer from retained earnings to paid-in capital an amo
NISA [10]

Answer: A

Fair value of the shares issued.

5 0
3 years ago
Robert has taken up cycling as a hobby and as a way to maintain his physical fitness. He wants to buy a hydration system since h
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Answer: B

Robert is in the Evaluation of alternatives stage of the buyer decision process.

Explanation:

The  various stages  which consumers go through when they are considering a purchase are as follows:

Problem or need recognition  , Information search , Evaluation of alternatives , Purchase , Post-purchase behavior

Evaluation of alternatives is the third stage in the Consumer Buying Decision process.  In this stage, the consumers evaluate all their options based on the attributes  of the products  which  is capable of  delivering  the benefit/ satisfaction that the consumer intends to get. Comparing the products (i.e different brands of products that is capable of satisfying  the consumer needs),   shows the alternatives being considered by consumers during the problem-solving process.

Therefore Robert, trying to choose between  : Waterbags for Roadies, Supertanker Hydropacks, and Fast Water is in the stage of   Evaluation of alternatives stage. Therefore the answer is B

6 0
2 years ago
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