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Sergio039 [100]
2 years ago
12

"Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest

chance of raising the funds they need with one of four sets of bond characteristics. Which option would cost them the MOST in total interest over the life of the bond
Business
1 answer:
telo118 [61]2 years ago
6 0

Answer:

C.eight-year bond with 5.5% annual interest rate

Explanation:

The computation of the total options under each option is as follows:

As we assume the par value be $1,000

For Option A

Total interest

= 9.5% × $1,000 × 3 years

= $285

For Option  B      

Total interest is

= 7.25% × $1,000 × 4 years

= $290

For Option C

Total interest is

= 5.5% × $1,000 × 8 years

= $440

For Option D

Total interest is

= 6% × $1,000 × 6 years

= $360

As we can see that the option C contains high value of the total interest. So the same is to be selected

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Suppose that you enter into a three-month forward contract on a non-dividend-paying stock when the stock price is $60 and the ri
mamaluj [8]

Answer:

The equivalent continuously compounding rate is 0.02%

Explanation:

Forward price of the contract in 3 months:

F = S x e^(r*t)

Expected equity market return of the stock in 3 months:

E(r) = F/S -1 = e^(r*t) -1 = e^(8%*1/4) - 1 = 0.0202 or 2.02%

Annual market rate or Annual market rate premium with rf as the risk-free interest rate per annum with quarterly compounding.

r = E(r) - rf = 2.02% - 8%/4 = 0.02%

The quarterly compounded rate (rq) is given by:

rq= 4 x [(r/2 + 1)^(1/2) - 1]

where r as the annual market risk rate.

Apply the above formula to the question:

rq=4 x [(0.02%/2 + 1)^(1/2) -1] = 0.0002 or 0.02%

7 0
3 years ago
What are the major benefits to IKEA of shifting so much of its global production to China? concentration of manufacturing assets
DerKrebs [107]

Answer:

The question is incomplete. Here is the full question:

a) What are the benefits to IKEA of shifting so much of its global production to China?

b) What are the risks associated with a heavy concentration of manufacturing assets in China?

c) What strategies might IKEA adopt to maximize the benefits and mitigate the risks associated with moving so much product?

a) As in many industries and among numerous companies, production in China has been a lucrative production model. The labor cost is extremely low, making labor a critical factor. Also, raw materials are widely accessible in China, thus high import taxes are eschewed.

Meanwhile, the labor has adequate education and the country is technologically progressive.

b) Risks are mainly associated with occasionally unstable political and economic factors, such as political turmoil and the rise of economic barriers.

Also, highly concentrated production location-wise is never the optimal option, as the mentioned factors can become critical for the whole supply chain in that case.

c) It would be wise to diversify production and disperse the production focal point - China. Thus, IKEA should consider new facility locations, such as most countries in the Southeast Asia region, which offer similar labor benefits.

If IKEA chooses to continue concentrated production in China, they could invest into logistics and transport, in order to create a robust supply chain.

3 0
3 years ago
Which poet, who seems be using iambic pentameter, bends the meter most?
Mice21 [21]
The correct answer is <span>D. Gerard Manley Hopkins

Other poets from the list either not use the iambic pentameter at all or stick to it. Gerard Manley Hopkins uses it as he likes it.</span>
6 0
3 years ago
Exercise 3-14A Prepare an adjusted trial balance (LO3-3, 3-4) Skip to question [The following information applies to the questio
VladimirAG [237]

Answer:

Demon Deacons Corporation

Adjusted Trial Balance:

Demon Deacons Corporation is presented below.

Accounts                                 Debit     Credit

Cash                                     $ 9,400

Accounts Receivable             14,400

Prepaid Rent                           4,320

Supplies                                     740

Deferred Revenue                                   $ 1,800

Salaries Payable                                            700

Common Stock                                          11,000

Retained Earnings                                     5,400

Service Revenue                                     47,480

Salaries Expense                 32,700

Rent Expense                         2,160

Supplies Expense                 2,660

                                         $ 66,380   $ 66,380

Explanation:

a) Data and Calculations:

The December 31, 2021, unadjusted trial balance for

Demon Deacons Corporation is presented below.

Accounts                                 Debit     Credit

Cash                                     $ 9,400

Accounts Receivable             14,400

Prepaid Rent                           6,480

Supplies                                  3,400

Deferred Revenue                                  $ 2,400

Common Stock                                          11,000

Retained Earnings                                     5,400

Service Revenue                                     46,880

Salaries Expense                 32,000

                                         $ 65,680   $ 65,680

Adjustments:

DR Rent Expense $2,160         CR Prepaid Rent $2,160

DR Deferred Revenue $600   CR Service Revenue $600

DR Salaries Expense $700      CR Salaries Payable $700

DR Supplies Expense $2,660 CR Supplies $2,660

8 0
3 years ago
Yolo I'm alone. And need help. Cuz I'm broke.
lawyer [7]

Answer:

I can't but I give the best of wishes on getting $15 on Nitro type

8 0
3 years ago
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