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Alja [10]
3 years ago
10

Goofy Inc.'s bonds currently sell for $925. They pay a $80 annual coupon, have a 25-year maturity, and a $1,000 par value. Compu

te the expected capital gain percentage for this year. (State as a percent, but do not include the percent sign and round to the second decimal place. Thus, 9.8765% would be written as 9.88 to be correct). (Hint: first compute the YTM and then find the capital gain.
Business
1 answer:
statuscvo [17]3 years ago
7 0

Answer and Explanation:

The computation of the YTM is shown below:

Given that

Future value be $1,000

NPER is 25

PMT is $80

Present value is $925

The formula is shown below:

=RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to maturity is 8.75%

Now the capital gain is

= 8.75% - ($80 ÷ $925)

= 8.75% - 8.65%

= 0.10%

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Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast fo
elena55 [62]

Answer:

The answer is C: 14300

Note: The actual answer is 14296, <em>and </em>the closest to that was option C.

Explanation:

Formula to calculate forecast using Exponential smoothing:

  •    F_{t} = F_{t-1} + \alpha ( A_{t-1} - F_{t-1} )

Where,

  • F_{t} = New Forecast
  • F_{t-1} = Previous period's forecast.
  • \alpha = Smoothing Constant
  • A_{t-1} = Previous period's Actual Demand.
  1. Calculating the forecast for period 5:

Data:

  • F_{5} = ?
  • F_{t-1} = 14000
  • \alpha = 0.4
  • A_{t-1} = 14750

Putting <em>values in the formula:</em>

F_{5} = 14000 + 0.4(14750-14000)

F_{5} = 14000 + 0.4 (740)

F_{5} = 14000 + 296

F_{5} = 14296

4 0
3 years ago
OceanGate sells external hard drives for $260 each. Its total fixed costs are $30 million, and its variable costs per unit are $
Svetach [21]

Answer:

a. in order to calculate this we must assume that the economy entered a recession:

degree of operating leverage = [($20 - $70)/$70] / [($260 - $520)/$520] = -0.7143 / -0.5 = 1.43

b. $14 million

Explanation:

strong economy:

total sales $520 million

<u>variable costs $420 million</u>

gross profit $100 million

<u>fixed costs $30 million</u>

EBIT $70 million

<u>income taxes $21 million</u>

net income $49 million

weak economy:

total sales $260 million

<u>variable costs $210 million</u>

gross profit $50 million

<u>fixed costs $30 million</u>

EBIT $20 million

<u>income taxes $6 million</u>

net income $14 million

7 0
4 years ago
A. by how much will gdp change if firms increase their investment by $11 billion and the mpc is 0.9?
Sliva [168]

Answer:

The answer is <u>"$110 billion".</u>

Explanation:

Firms increase their investment by $11 billion

mpc = 0.9

gdp = ?

To find the gdp, first we have to find expenditure multiplier;

we will find that by using the formula;

expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10

Now gdp = 10 x $11 billion

= $110 billion

Thus the <u>gdp is $110 billion.</u>

6 0
4 years ago
What is one medical use for x-rays​
MakcuM [25]

Answer:

X-rays can be used to see what areas of a bone a broken or injured. It helps understand what parts of the body may have injuries.

Hope this helps.

6 0
3 years ago
Which of the following is the least liquid investment A. Savings account B. CD C. Mutual fund D. Cookie jar
Drupady [299]
Hello there!


The correct answer is option D- Cookie jar

As always, it is my pleasure to help students like you!

4 0
3 years ago
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