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padilas [110]
3 years ago
11

Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of

a $1,000 face value bond
Business
1 answer:
Helga [31]3 years ago
3 0

Answer:

Zero-cupon bond= $835.45

Explanation:

Giving the following information:

Face value= $1,000

YTM= 11.3%

Years to maturity= 16 years

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= 1,000 / (1.113^16)

Zero-cupon bond= $835.45

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The cash conversion cycle is computed as:
Anna [14]

Answer:

The correct option here is A) Days sales outstanding + Days inventory outstanding - Days payable outstanding.

Explanation:

Cash conversion cycle which is also termed as Net operating cycle or Cash cycle, this cycle tells us about how much time it is going to take for an organization to converts the amount of investment it has made in the inventory and various other resources to cash , which will be generated by sales.

Formula used for calculation =

                             AMOUNT OF SALES OUTSTANDING IN DAYS

                                                  +

                             AMOUNT OF INVENTORY OUTSTANDING IN DAYS

                                                  +

                             AMOUNT OF PAYABLE OUTSTANDING IN DAYS

4 0
3 years ago
Shamrock Company had the following information available at the end of 2014.
mars1129 [50]

Answer and Explanation:

The preparation is presented below:      

                                                Shamrock Company

                                            Statement of Cash Flows

                                 For the Year Ended December 31, 2014

                                                  (Direct Method)

Cash flows from operating activities

Cash receipts:  

Cash received from customers $1,153,660  

Dividends received                 $2,500

Total cash receipts                         $1,156,160

Cash payments:  

Cash paid to suppliers                  $762,690  

Cash paid for operating expenses $225,230  

Taxes paid                                     $39,920  

Interest paid                                       $61,776

Total cash payments                           -$1,089,616

Net cash provided by operating activities  $66,544

Cash flows from investing activities  

Sale of short-term investments $14,080  

Sale of land $55,590  

Purchase of equipment -$124,570  

Net cash used by investing activities  -$54,900

Cash flows from financing activities  

Proceeds from issuance of common stock $29,526  

Principal payment on long-term debt -$9,580  

Dividends paid -$23,890  

Net cash used by financing activities  -$3,944

Net increase in cash  $7,700

Cash, January 1, 2014  $3,060

Cash, December 31, 2014  $10,760

Working notes

Sales Revenue $1,160,450  

– Increase in Accounts Receivable $6,790  

Cash received from customers $1,153,660  

Cost of Goods Sold $748,980  

+ Increase in Inventory $5,020  

+ Decrease in Accounts Payable $8,690  

Cash paid to suppliers $762,690  

Operating Expenses $275,640  

– Depreciation/Amortization Expense -$39,330  

– Decrease in Prepaid Rent -$110,80  

+ Increase in Prepaid Insurance $1,640  

+ Increase in Office Supplies $520  

– Increase in Wages Payable -$2,160  

Cash paid for Operating Expenses $225,230  

Income tax expense $40,350  

Less:Increase in income taxes payable -$430  

Taxes paid $39,920  

Interest Expense $52,270  

+ Decrease in Bond Premium $9,506  

Interest paid $61,776  

Reconciliation of Net Income to Net Cash Provided by Operating Activities:  

Net income  $58,420

Adjustments made to reconcile net income to net cash provided by operating activities:  

Add: Depreciation expense $39,330  

Add: Decrease in prepaid rent $110,80  

Add: Increase in income taxes payable $430  

Add: Increase in wages payable $2,160  

Less: Increase in accounts receivable -$6,790  

Less: Increase in inventory -$5,020  

Less: Increase in prepaid insurance -$1,640  

Less: Increase in office supplies -$520  

Less: Decrease in accounts payable -$8,690  

Less: Gain on sale of land -$8,320  

Less: Gain on sale of short-term investments -$4,390  

Less: Amortization of bond premium -$9,506  

Total adjustments  $8,124

Net cash provided by operating activities  $66,544

8 0
3 years ago
True or false Decentralization refers to the degree to that decision making is concentrated to the top of the organization
MatroZZZ [7]

Decentralization refers to the degree to that decision-making is concentrated to the top of the organization: False.

<h3>What is a decentralized organization?</h3>

In a decentralized organization, the decision-making authority and power isn't concentrated at the top level (echelon) of the organization.

This ultimately implies that, decentralization refers to the degree to that decision-making is concentrated to all the areas of an organization.

Read more on decentralization here: brainly.com/question/23818047

#SPJ1

8 0
2 years ago
Read 2 more answers
_____________ occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.
andriy [413]

<u>An </u><u>oligopoly</u> occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.

Oligopoly markets are markets dominated with the aid of a small range of suppliers. They can be determined in all international locations and throughout a large range of sectors. some oligopoly markets are aggressive, even as others are appreciably much less so, or can as a minimum seem that way.

A number of the most exquisite oligopolies within the U.S. are in film and television production, recorded track, wi-fi companies, and airlines. for this reason the 1980s, it has become greater, not unusual for industries to be ruled with the aid of or three companies. Merger agreements among foremost gamers have ended in industry consolidation.

An oligopoly is a market structure in which a market or enterprise is ruled by means of a small wide variety of big sellers or manufacturers. Oligopolies regularly end result from the choice to maximize profits, leading to collusion among corporations.

Learn more about oligopoly here brainly.com/question/3227891

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3 0
1 year ago
Interorganizational systems are examples of _____. Select one: a. group information technologies b. private information technolo
vazorg [7]

Answer:

D

Explanation:

Enterprise information technology is a type of information system designed to improve organizations structured interactions among their own employees and also with external customers,suppliers, government agencies, and other business partners. Three examples of enterprise information technology are transaction processing, enterprise, and interorganizational systems

7 0
3 years ago
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