Which of the following statements is true of financial leverage

Paris operates a talent agency as a sole proprietorship,and this year she incurred the following expenses in operating her talen

Juliette [100K]

Answer:

A) $450.

Explanation:

The computation of the total deductible amount of the expenses is as follows:

In the case of the deduction with respect to the meal cost and entertainment. Only the half of the expense would be deducted i.e. for the business meeting

As in the question the opera tickets is $900 so the half of $900 i.e. $450 would be allowed as a deduction

Therefore the correct option is A.

6 0

3 years ago

A $ 1 comma 000 bond with a coupon rate of 6.2% paid semiannually has two years to maturity and a yield to maturity of 6%. If

pav-90 [236]

Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

<u />

<u>Before Interest rates Fell</u>

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

<u />

<u>After Interest Rates Fell</u>

New YTM = 6% - 0.8% = 5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5 = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72 = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0

3 years ago

A company produces products at 2 plants each of which have a capacity of producing 75 units. 50 units of each product must be sh

zalisa [80]

Answer:

the answer is 6

Explanation:

In this case we would need to have a combination of each plant with each customer. So the variable would be in this way (3C X 2P)

Customer1 Customer2 Customer3

Plant1 P1C1 P1C2 P1C3

Plant2 P2C1 P2C2 P2C3

Once you have this you can calculate the best combination to minimize the cost of shipping

7 0

3 years ago

Which type of insurance covers individuals by giving them a

Gelneren [198K]

Answer:

Disability

Explanation:

Disability insurance offers protection against the loss of income due to disability or sickness. This insurance policy provides income to the insured if they are unable to work as a result of a disability or serious illness. Disability insurance coverage is available from private insurance companies and government-backed programs.

4 0

3 years ago

Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p

Katen [24]

The effective rate on these bonds is 7.17%

<h3>What is the effective rate?</h3>

The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.

The effective interest rate can be determined using a financial calculator:

Cash flow in year 0 = -490,222
Cash flow from period 1 - 12 = 6% x 540,000 = 32,400
Cash flow in year 6 or period 12 = $540,000

effective interest rate = 7.17%

To learn more about effective interest rate, please check: brainly.com/question/13735414

#SPJ1

7 0

2 years ago