Answer:
6.32%
Explanation:
Bonds yield amount = $1,030 × 6.14% = $63.242
Coupon rate = Bond yield amount ÷ Par value of the bond = $63.242 ÷ $1,000 = 0.063242, or 6.32%
Therefore, the coupon rate on the bonds must be 6.32%.
Answer:
$984.50
Explanation:
Cost of bond at closing = Par value * % Bond traded last
Cost of bond at closing = 1000 * 98.45%
Cost of bond at closing = $984.50
Thus, the cost of bond at closing is $984.50
Answer:
$519,800
Explanation:
Variable cost per unit = $5.90 + $5.30 + $8.90 + $0.60
Variable cost per uni= $20.70
Fixed cost total = $32,000 + $178,000 + $7,000 + $20,000
Fixed cost total = $237,000
Cash disbursements for December = (Variable selling and administrative cost per unit*Number of unit (Yutes) sold) + (Fixed manufacturing overhead less depreciation)
= (14,000 * $20.70) + ($237,000 − $7,000)
= $289800 + $230,000
= $519,800
Answer:
$44.18
Explanation:
The price can be easily calculated by the simple formula,
Price of stock = Dividend / (rate of return - growth of dividend)
Hence,
Price of stock = 1.90 / (0.085 - 0.042)
Price of stock = $44.18.
Hope you understand this simple equation
Thanks buddy.
Answer:
A greater saving will reduce the impact of the multiplier.
Explanation:
A multiplier generally refers to the factor that amplifies or increase the initial change of something else.
In economics, multiplier refers how change in spending or saving results into a larger change in local output and income.
Since addition of marginal propensity to consume (MPC) and marginal propensity to save (MPS) is equal to 1, the formula for calculating a multiplier can be stated as:
Multiplier = 1/(1 - MPC) or 1/MPS
From the question therefore, when MPS = 0.10, we have:
Multiplier = 1/0.10 = 10
When MPS is increases to 0.20, we have:
Multiplier = 1/0.20 = 5
Since 5 is less than 10, a greater saving will therefore reduce the impact of the multiplier.
