Answer:
8.91%
Explanation:
In this question We applied the Rate formula which is presented in the attachment below:
Data given in the question
PMT = 1,000 × 9.5% ÷ 2 = $47.50
NPER = 18 years - 2 years × 2 = 32 years
Present value = $1000 × 105% = $1,050
Assuming figure - Future value = $1,000
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 8.91%
Answer:
the sales revenue that Head-First must make to earn operating income of $73,120 is $324,000
Explanation:
Hi, first we need to find the units to reach an operating income = $73,120
Price=72
Var Cost= 72*0.62=44.64
Fixed cost= 50,000
With that in mind, let´s formulate the equation
Where:
X= units to sell
everything should look like this
So, Head First has to sell 4,500 units in order to make that $73,120 operating income mark. Therefore, the sales revenue will be 4,500*$72=$324,000
To check the aswer, please relate to the MS excel spreadsheet attached to this answer.
Best of luck.