Based on the information given the cost of the bond is $670 and the annual interest is $40.
<h3>Cost and annual interest of the bond </h3>
a. Cost of bond:
Cost of bond= (67/100)×1000
Cost of bond =$670
<h3>Annual interest:</h3>
Annual interest= (4/100)×1000
Annual interest=Bond percentage× Cost of bond
Annual interest=$40
Inconclusion the cost of the bond is $670 and the annual interest is $40.
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Answer:
Option B is the correct answer,as permanent earnings is $80000 as shown below.
Explanation:
Permanent earnings refer to earnings from continued operations of the business.Hence gain on sale of land of $30000 is transitory earnings that is not likely to occur frequently.
Permanent earnings is computed as follows:
Sales revenue $860000
Cost of goods sold ($520000)
selling expenses ($250000)
Interest expense ($10000)
Net income $80000
From the above computation without considering the gain on sale of land the net earnings is $80000
Answer:
Burberry is pursuing an umbrella strategy
Explanation:
Companies can choose three different kinds of strategies based on their strategy to offer a standard or customized product to customers with different needs
.
An umbrella branding strategy, is a marketing practice that involves many related products under a single brand name.
With the new items at an entry level, Burberry´s pricing strategy is such that it does not compromise on the quality but it does offer products at different price levels to target a variety of customers.
Answer:
Intrinsic Value = $33.23
Explanation:
<em>The intrinsic value of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return. </em>
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
D- 3.12 , g-6.50% r-6.25%
Intrinsic value = (3.12× 1.065)/(0.1625-0.065)= $33.228
Intrinsic Value = $33.23
One
kind of market failure arises because there are situations when it is
impossible to charge the customer for the service, for example if someone
arranges an air show or fireworks, this can be seen from a far place as well as
seen by paying for the event making it impossible to limit this for only those
who pay for that. This is one kind of failure which is non-excludable (You cannot
exclude those watching from far) and non-rival (One person’s watching does not
limit other one’s sight).
Second
kind is the presence of externality. It arises when the cost or benefits accrue
to someone other than the buyer and seller. For example cigarette is affecting
the third party by making the environment pollute.
Both
can happen simultaneously. For example a firework show keeps both attributes of
first kind and the second kind as well.