Answer:
b. selling at a premium; i.e., the bond's market price should be greater than its face value.
Explanation:
In the case when the market rate of return or yield to maturity is lower than the coupon rate this represents that the bond sells at a premium i.e. the market price of the bond is more than the face value
Let us suppose the market price of the bond is $1,050
And, the face value is $1,000
So the bond is sold at a premium
hence, the correct option is b.
Answer:
Since 20% of the goods of the next quarter need to be produced beforehand in the second quarters start there will already be a starting inventory of (0.2*26,000)=5,200
This means that in the second quarter to meet the the sales (26,000-5,200)=20,800 need to be produced
Also 20% of next quarters unit sales also needs to be produced in the second quarter so (0.2*30,000)=6000
Budgeted production in the 2nd quarter= 20,800+6,000=34,000
Explanation:
Answer:
you should write it just like it says
Answer:
c. Reject the project because the NPV is negative $120,921
Explanation:
As we know that the depreciation is a non-cash expense so here we need to add the depreciation expense again
Now the cash inflow would be $100,000 each year i.e. for 5 years
And, the initial investment is $500,000
Now we have to use the formula of NPV in an excel by using the NPV function
=NPV(rate,Year1 to Year5 cashflows)-Year0 cashflow
=NPV(10%,Year1 to Year5 cashflows)-500000
=-120,921
So as we can see that the npv comes in negative so the project should be rejected
Therefore the correct option is c.
Answer:
Decrease the size of the group
Explanation:
Since in the question it is mentioned that there is a group of fifteen people for coordinating the merger of two corporations. Everyone is highly qualified but the work of a group seems to very slow.
So if Alberto wants to increase the cohesiveness and productivity, so he should decrease the group size so that the working could come in a normal cycle and every task could be completed within a prescribed time.