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Aleonysh [2.5K]

3 years ago

13

You own a bond that has a duration of 7 years. Interest rates are currently 8%, but you believe the Fed is about to increase int

erest rates by 28 basis points. Your predicted price change on this bond is ________.
a. +1.81%
b. +6.48%
c. −6.48%
d. −1.81%

1 answer:

qaws [65]3 years ago

7 0

The answer could be D but if not then it has to be C

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Earnings per share Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,324,

ss7ja [257]

Question Completion:

b. Is the change in the earnings per share from 20Y5 to 20Y6 favorable or unfavorable?

Answer:

Black Bull Inc.

20Y5 20Y6

1. Earnings per share (EPS) $18.20 $21.50

2. The change in the earnings per share from 20Y5 to 20Y6 is favorable.

More revenue and profits were generated in 20Y6 and despite the increased number of shares outstanding, the EPS for 20Y6 performed better than 20Y5's.

Explanation:

a) Data and Calculations:

20Y5 20Y6

Net income $1,324,000 $2,630,000

Preferred dividends $50,000 $50,000

Earnings available to common

stockholders $1,274,000 $2,580,000

Average number of

common shares outstanding 70,000 shares 120,000 shares

Earnings per share (EPS) $18.20 $21.50

($1,274,000/70,000) ($2,580,000/120,000)

3 0

3 years ago

. On March 3, 2002, pursuant to a public offering, First All State Trucking Corp. (FAST) issued securities to investors in denom

katrin [286]

Answer:

The bond is unsecured, doesn't have right to collateral, is called debenture.

Explanation:

The security in this question has a maturity date with stated interest, While, both preferred stocks and bonds would have a guaranteed payment, stocks are ownership in a company and wouldn´t have maturity date, so it can't be a stock.

Maturity dates are relevant to bonds, loans to a company, because that is the date when the bondholder should receive final payment on the face value of the bond. In this case 1.000.

5 0

4 years ago

Select all the choices that decision makers could use marginal analysis for to make effective decisions.

mylen [45]

<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>

7 0

3 years ago

Read 2 more answers

Suppose the tax rate on the first $10,000 income is 0 percent; 10 percent on the next $20,000; 20 percent on the next $20,000; 3

nordsb [41]

Answer:

Th answer is: Marginal tax rate for Family A is 20%, average tax rate is 12%. There is no Family B in the question.

Explanation:

Family A's tax rate are as follows:

Income Tax rate

up to $10,000 0%

$10,000 to $30,000 10%

$30,000 to $50,000 20%

$50,000 to $80,000 30%

over $80,000 40%

Since Family A's income is $50,000, their marginal tax rate is 20%, and its average tax rate is = [($20,000 x 10%) + ($20,000 x 20%) / $50,000] = ($2,000 + $4,000) / $50,000 = $6,000 / $50,000 = 12%

6 0

3 years ago

Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales

Alexeev081 [22]

Answer:

160,000 units

Explanation:

Step 1 : Determine the Sales Mix

Bramble : Standard

60000 : 40000

3 : 2

Step 2 : Determine the Overall Break even Point

Break even Point = Fixed Cost ÷ Contribution per unit

= $2400000 ÷ $30

= 80,000

Step 3 : Determine break-even point for Standards

Standards Break even point = 80,000 x 2

= 160,000 units

Thus,

Bramble Corp would sell 160,000 units of Standards at the break-even point

8 0

3 years ago