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Dafna11 [192]
3 years ago
5

A bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payme

nts. The bonds mature in four years. The bank wants to sell them in two years, and estimates the required rate of return in two years will be 8 percent. What will the market value of the bonds be in two years?
Business
1 answer:
Ilya [14]3 years ago
3 0

Answer:

$25,891,632.37

Explanation:

The computation of the market value of the bond in two years is given below:

We know that

Market value of the bonds be in two years is

= pv(rate, nper,pmt,fv)

Here  

Nper = 2

PV = ?

PMT =  25000000 × 10% = 2500000

FV = 25000000

Rate = 8%

Now  

Market value of the bonds be in two years is

= pv( 8%,2,2500000,25000000)

= $25,891,632.37

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The _____ stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by m
4vir4ik [10]

Answer:

Growth Stage

Explanation:

The growth stage of the product life cycle is characterized by rapid market expansion as more and more customers, stimulated by mass advertising and word of mouth, make their first, second, and third purchases. In growth stage sales starts rising rapidly, average cost per customer, profits starts rising as well, early adopters buy products, competitors starts increasing in number. Main aim of any firm in this stage is to maximize market share. Brands need to offer product extension. Price needs to be set to penetrate the market.

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3 years ago
Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 u
GuDViN [60]

Answer:

$16.20

Explanation:

Calculation for How much is the cost per equivalent unit for direct materials

Cost per equivalent unit for direct materials=($36,000+$186,000)/[11,000+(3,000*90%)]

Cost per equivalent unit for direct materials=$222,000/(11,000+2,700)

Cost per equivalent unit for direct materials=$222,000/13,700

Cost per equivalent unit for direct materials=$16.20

Therefore the the cost per equivalent unit for direct materials will be $16.20

7 0
3 years ago
Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. During 2019, the company had revenues of $410,000 and ba
NISA [10]

Answer:

Retained earnings on the December 31, 2019: $253,000

Explanation:

Ending balance in retained earnings is calculated by using following formula:

Ending balance in retained earnings = Beginning balance in retained earnings + Net income - Cash dividends - Stock dividends

Grizzly Company had Retained Earnings at December 31, 2018 of $210,000.  Beginning balance in retained earnings at January 01, 2019 is $210,000

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Ending balance in retained earnings = $210,000 + $55,000 - $12,000 = $253,000

4 0
3 years ago
Georgia, a widow, has take-home pay of $1,900 a week. her disability insurance coverage replaces 60 percent of her earnings afte
scoray [572]

Georgia will receive $17,100.

If Georgia was out of work for 19 weeks she would receive 60% of her weekly pay.

In order to calculate 60% you multiply $1,900 x .6 = $1,140.

Georgia’s Disability insurance will pay $1,140 per week after a four week waiting period. She is out for 19 weeks, so with the 4 week waiting period, she will collect benefits for 15 weeks. 15 weeks x $1,140 = $17,100 total.

5 0
3 years ago
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