Which bank deals with short term of credit A. Agricultural bank B. Comersial bank C. Industrial Bank D. None of these

Compute the present value of $700 paid in three years using the following discount rates: 5 percent in the first year, 6 percent

Aneli [31]

Answer:

$587.79

Explanation:

Data provided in the question

Amount paid in three years = $700

Discount rate in the first year = 5%

Discount rate in the second year = 6%

Discount rate in the third year = 7%

So by considering the above information, the present value is

= (Amount paid in three years) ÷ (1 + Discount rate in the first year × 1 + Discount rate in the second year × 1 + Discount rate in the third year)

= ($700) ÷ (1 + 0.05 × 1 + 0.06 × 1 + 0.07)

= ($700) ÷ (1.05 × 1.06 × 1.07)

= $700 ÷ 1.19091

= $587.79

5 0

3 years ago

Cost classifications For each of the following costs, check the columns that most likely apply (both variable and fixed might ap

Vanyuwa [196]

Answer:

A. Particular Direct Indirect Variable Fixed

1 Wages of Assembly Yes No Yes No

2 Deprecation of plant & No Yes No Yes

Machinery

3 Glue & Thread No No Yes No

4 Outbound Shipping Cost No Yes No Yes

5 Raw Material Handling Cost Yes No Yes No

6 Salary Of Public Relations No Yes No Yes

manager

7 Production Run Setup Costs Yes No Yes No

8 Plant Utilities Yes No Yes No

9 Electricity cost of retail stores No Yes Yes No

10 Research and development No Yes No Yes

expense

B. Product-Costing

i. Manufacturing Cost Per Machine Hour = Total Manufacturing overhead / Total Machine Hours

Manufacturing Cost Per Machine Hour = 359,520.00 / 21,400.00

Manufacturing Cost Per Machine Hour = 16.80

ii. Particular Amount

Raw Material $6,240

Direct Labor Cost $9,165

$15,405

Manufacturing overhead $13,104

(780 hours* $16.80)

Total Cost of 3900 Hats $28509

Thus, the Cost of One hat = $28509 / 3900 hat = $7.31 per hat

iii. Total Hats made During the Month Of April 3,900

Less: Closing Inventory 1,050

Sold During the month of April 2,850

Cost Of Hats Sold During the month of April

= 2,850 * $7.31

= $20,833.5

Cost of Closing Stock (1,050 hat) = 1,050 hat * $7.31 = 7675.5

8 0

3 years ago

Which term refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accountin

patriot [66]

Answer:

Internal controls is the correct answer.

Explanation:

6 0

3 years ago

g You currently hold an inflation-indexed bond, which pays out real coupons of 10% per year, starting one year from now. The bon

Allushta [10]

Answer:

$618 dollars

Explanation:

The beginning face value will be our starting position: $600

Then, we have a 2 percent increase over the next three years

this makes for a principal at maturity of:

600 x (1 + 2% x 3 years ) = $618

This makes each coupon return in coins to also increase over time as, they are calcualted based on the adjusted face vale. This method iguarantee the 10% return on the bond regardless of inflation during the period.

3 0

3 years ago

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. the bond cur

bogdanovich [222]

Answer:

a.

5.72%

b.

6.83%

c.

2.86%

Explanation:

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Assuming $1,000 is the face value of bond.

a.

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,100 ) / (5 x 2) ] / [ ( $1,000 + $1,100 ) / 2 ]

Yield to Call = [ $40 - 10 ] / $1,050 = 2.86% semiannually = 5.72% yearly

b.

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,050 ) / (5 x 2) ] / [ ( $1,000 + $1,050 ) / 2 ]

Yield to Call = [ $40 - 5 ] / $1,025 = 3.415% semiannually = 6.83% yearly

c.

Yield to Call = [ ($1,000 x 8% x 6/12 ) + ( $1,000 - $1,100 ) / (2 x 2) ] / [ ( $1,000 + $1,100 ) / 2 ]

Yield to Call = [ $40 - 10 ] / $1,050 = 1.43% semiannually = 2.86% yearly

6 0

3 years ago