Answer:
The answer is 5.71%
Explanation:
Solution
Given that
Coupon rate = 7%
Bond = $1050
Sale of the bond = $1040
n = 10 years, n = 1 year
Now we find the investor's rate of return
Thus
Coupon payment = 7%* 1000
=70
1050 = 70/(1+r) + $1,040/(1+r)
r= 5.71%
Therefore the rate of return of the investor is 5.71%
or
Rate of return = (P1-P0+ Interest ) /P0
= (1040 -1050 + 70 )/1050
= .0571 or 5.71%
Answer:
d. $2,000 less
Explanation:
The computation is shown below:
<u>Particulars January February March
</u>
Units beg.
inventory 0 3,000 4,500
Units produced 10,000 10,000 10,000
Units sold -7,000 -8,500 -10,500
Units ending
inventory 3,000 4,500 4,000
Now
= $4 × (4,500 - 4,000)
= $2,000
So, here the income arise from absorption costing should be lower than the variable costing as the inventory is reduced
It should be noted that the effective annual rate on a bank deposit is always equal to or greater than the nominal rate on the deposit. Therefore, it is true.
<h3>What is effective
annual rate?</h3>
The effective interest rate is the interest rate on a loan restated from the nominal interest rate and it is expressed as the equivalent interest rate when compound interest was payable annually in arrears.
As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit.
Learn more about annual rate on:
brainly.com/question/15728540
Answer:
The correct answer is "communism system"
Explanation:
The communist system is a political and economic ideology postulated principally by Karl Marx. Where the nation is in contradiction to the liberal democracy and capitalism, promoting alternatively a classless system and the private property doesn´t exist. There are a lot of restrictions on freedom of assembly and freedom of speech, because the government seeks to have the system under control and cannot allows alternate ideologies that undermine its mandate.
Answer:
1. $3,59,666.66
2. $4,10,066.66
Explanation:
1. The computation of value of firm is shown below:-
As the Earning before interest and tax given remains the same, this impact that there is no growth rate in the earnings to consider.
= Earning before interest and tax × (1 - Tax) ÷ Cost of equity
= $83,000 × (1 - 0.35) ÷ (0.15)
= $53,950 ÷ 0.15
= $3,59,666.66
2. The computation of value of levered firm is shown below:-
Value of unlevered firm + Debt × Tax rate
= 3,59,666.66 + ($144,000 × 35%)
= $4,10,066.66
