1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
suter [353]
3 years ago
6

Big Ed's Electrical has a pure discount bond that comes due in one year and has a face value of $1,000. The risk-free rate of re

turn is 4 percent. The assets of Big Ed's are expected to be worth either $800 or $1,300 in one year. Currently, these assets are worth $1,140. What is the current value of the debt of Big Ed's Electrical?
a) $222.46
b) $370.77
c) $514.28
d) $769.23
e) $917.54
Business
1 answer:
Ivahew [28]3 years ago
8 0

Answer: $917.54

Explanation:

The current value of the debt of Big Ed's Electrical will be calculated thus:

First, we will calculate the present value which will be:

= $800 / (1 + 4%)

= $800 / ( 1 + 0.04)

= 800 / 1.04

= $769.23

The number of options that are needed

will be:

= (1300 - 800) / ( 300 - 0)

= 500 / 300

= 1.6667

Therefore,

1140 = ( number of option needed × Co) + Present value

1140 = (1.6667 × Co ) + 769.23

Co = (1140 - 769.23 ) / 1.6667

Co = 370.77 / 1.6667

Co = $222.46

Value of debt will now be:

= Current worth of assets - Co

= 1140 - 222.46

= 917.54

Therefore, the answer is $917.54

You might be interested in
Hester's manufacturing software company is doing better than it ever has and just a year ago it was floundering. Prior to a year
nydimaria [60]

Permanent team structure was Hester now a part of under the new ownership.

Explanation:

Team structure relates to the makeup of a single team or a multi-team program. The organisation of teams is an important component of teamwork. The successful collaboration, teamwork, behavioural management and collective aid are the product of a correctly organised patient care team.

Permanent teams are workplace units structured like a formal organisation. The team brings together staff from all fields of work, such as the components supply and logistics for an automotive plant, concentrated on a particular task or project.

3 0
4 years ago
The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred t
laila [671]

Answer:

Option (D) is correct.

Explanation:

Given that,

Beginning work in process = $4,000

Ending work in process in finishing department = $6,000

Cost transferred = $47,000

Direct material = $15,000

Direct labor  = $46,000

Overhead  = $22,000

Cost incurred in finishing department:

= Beginning work in process + Cost transferred + Direct material + Direct labor + Overhead

= $4,000 + $47,000 + $15,000 + $46,000 + $22,000

= $134,000

Cost of goods transferred to the Finished Goods Inventory account:

= Cost incurred in finishing - Ending work in process

= $134,000 - $6,000

= $128,000

5 0
4 years ago
The unemployment due to changes in the types of skills employers require is called
Rzqust [24]
Answer: "structural unemployment".
_______________________________________
6 0
3 years ago
Read 2 more answers
The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification
postnew [5]

Answer:

  • L
  • L
  • c
  • n
  • n
  • c
  • n
  • l
  • n

I think so buh I’d advice u to make it its correct

7 0
3 years ago
Olive Branch Inc. had 400,000 shares of common stock issued and outstanding at December 31, 2016. On July 1, 2017 an additional
klasskru [66]

Answer:

$512,000

Explanation:

The computation of Number of Share included for computing diluted earning per share is shown below:-

For computing the Number of Share included for computing diluted earning per share we need to find out the issued shares and Stock option which is given below

Issued Shares = 200,000 × 6 ÷ 12 (From July to December)

= $100,000

Stock option = 60,000 - (60,000 × $28 ÷ $35)

= $12,000

So, Total stock outstanding = Shares at Beginning + Issued Shares + Stock option

= 400,000 + $100,000 + $12,000

= $512,000

3 0
3 years ago
Other questions:
  • An employee receives an hourly wage rate of $16, with time and a half for all hours worked in excess of 40 hours during a week.
    11·1 answer
  • Flagler Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost aver
    14·1 answer
  • The probability of a loss occurring can be reduced by
    7·1 answer
  • As the world is shrinking and businesses are more commonly working on an international level, understanding the differences amon
    7·1 answer
  • Nick is a recent finance graduate who has two passions: music and finance. Upon graduation, he was offered an opportunity to joi
    9·1 answer
  • If the consumption function is defined as C = 5,500 + 0.9Y, what is the
    11·1 answer
  • Your project to obtain charitable donations is now 30 days into a planned 40 day project. The project is divided into 3 activiti
    8·1 answer
  • You choose to complete your homework rather than watch television so that you can earn a good grade. You made the choice with th
    11·2 answers
  • Because self-managed teams were established at the Kinex plant, the number of electrical components produced has increased by 12
    15·1 answer
  • The first person that answers ill give u 50 brainlist points, brainlist to, stars, and a heart
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!