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Murljashka [212]
2 years ago
5

Sheridan Corp is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.825 percent. If th

ese bonds have a market price of $985.63, what yield to maturity can she expect to earn?
Business
1 answer:
krek1111 [17]2 years ago
8 0

Answer:

The annual YTM will be = 0.063496 or 6.3496% rounded off to 6.35%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

Where,

  • C is the semi annual coupon payment  in case of semi annual bond
  • F is the Face value of the bond
  • P is the current value of the bond
  • n is the number of semi annual periods to maturity  in case of the semi annual coupon bond

Assuming that the face value of the bond is $1000.

Coupon payment - semi annual= 1000 * 0.05825 * 6/12 = 29.125

Number of semi annual periods = 3 * 2 = 6

YTM - semi annual= [ (29.125 + (1000 - 985.63 / 6))  /  (1000 + 985.63 / 2)

YTM - semi annual= 0.031748 or 3.1748% rounded off to 3.17%

The annual YTM will be = 0.031748 * 2 = 0.063496 or 6.3496% rounded off to 6.35%

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A business model a. is a road map for the marketing activities of an organization for a specified future time period. b. consist
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Answer: Option  E

Explanation: In simple words, a business model refers to a framework that is used by the organisation to monitor and analyze the activities that are done in the workplace for smooth running of operations.

This model works a guideline and also facilitates the objectives of comparison for an organisation.

Thus, the correct option is E .

7 0
2 years ago
Sprint allocates general plant management costs on the basis of the number of production employees and plant security costs on t
Westkost [7]

Answer:

a.

General Plant Management Costs

Cost is $100,000

These costs are allocated on the basis of number of production employees.

Melting Department employs 35 workers and Molding employs 40 for a total of 75.

Melting Department = \frac{35}{75} * 100,000

Melting Department = $46,666,67

Molding Department = \frac{40}{75} * 100,000

Molding Department = $53,333.33

Plant Security Costs

Cost is $50,000

These costs are allocated on the basis of space occupied by the production departments.

Melting Department occupies 10,000ft² and Molding occupies 20,000 ft²  for a total of 30,000 ft²

Melting Department = \frac{10,000}{30,000} * 50,000

Melting Department = $16,666,67

Molding Department = \frac{20,000}{30,000} * 50,000

Molding Department = $33,333.33

2. Melting Department

= 110.000 + 46,666.67 + 16,666.67

= $173,333.34

Molding Department

= 400,000 + 53,333.33 + 33,333.33

= $486,666.66

3 0
3 years ago
According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to desig
Leokris [45]

Answer:

<em>The correct answer is:</em> cost leadership

Explanation:

According to Porter, every company has a strategy, whether planned or unplanned, being directly influenced by the environment in which it operates and by the industries and competitive sector. For him, companies should use the generic strategies mentioned by him so that they can survive the five competitive forces of the industry. Porter's generic strategies are: cost leadership, differentiation and focus.

The most appropriate generic strategy for the above question is cost leadership, whose central objective is to achieve total leadership in a given sector, using appropriate policies and procedures for that purpose.

The objective is achieved when a company develops a quality structure that brings together efficient equipment, qualification of personnel and control of expenses in order to maintain a low cost that generates greater returns for the company than those of its competitors.

7 0
3 years ago
Given the following information, compute the total number of units for the period:
enyata [817]

Answer:

Total number of units produced for the period = 662 units

Explanation:

Total manufacturing cost = (Fixed overhead cost) + (Total direct labour cost) + (Total materials cost) + (Total Variable overhead cost)

Let the number of units produced be Q

Total manufacturing cost = $160705

Fixed overhead cost = $58000

Total direct labour cost = cost of direct labour per hour × number of direct labour hours = 2.7 × 13100 = $35370

Total direct materials cost = Direct material cost per unit × number of units produced = 75 × Q

Total variable overhead cost = 50% of total labour cost = 50% of 35370 = $17685

160705 = 58000 + 35370 + 75Q + 17685

75Q = 160705 - 58000 - 35370 - 17685

75Q = 49650

Q = 662 units

5 0
3 years ago
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