1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
CaHeK987 [17]
4 years ago
15

Mountain Excursions issues a bond due in 10 years with a stated interest rate of 7% and a face value of $200,000. Interest payme

nts are made semi-annually. The market rate for this type of bond is 8%. What is the issue price of the bond (rounded to nearest whole dollar)
Business
1 answer:
-Dominant- [34]4 years ago
7 0

Answer:

 $186,409.7  

Explanation:

The computation of the issue price of the bond is shown below:

Cash flows               Amount  PVF         Present value

Semi annual Interest   $,7000 13.59033 $95.132.31  

Maturity value     $200,000 0.456387 $91,277.4  

Price of bonds                                   $186,409.7  

The number of years is 20

And, the rate of interest is 4%

And please refer to the present value factor table

You might be interested in
According to the producer price index database maintained by the Bureau of Labor Statistics, the average cost of computer equipm
Alika [10]

Answer:

A.

2015 37.7

2016 12.9

B. Yes

Explanation:

Computation of the times interest earned ratios for 2016 and 2015

First step is to find the EBIT

EBIT: 2016 $ 2015 $

Gross profit 44,500 58,400

Less Selling, General and Administrative expenses (36,900) (38,800)

EBIT 7,600 19,600

Second step is to compute the times interest earned ratios for 2016 and 2015 using this formula

Time interest earned = EBIT / Interest expense

Let plug in the formula

Time interest earned 2016 2015

EBIT $7,600 $19,600

÷Interest expense $590 $520

=Time interest earned 12.9 37.7

Therefore the Time interest earned will be :

2015 37.7

2016 12.9

2. Yes Computer Tycoon generate sufficient net income in both 2015 and 2016 before taxes and interest in order to cover the cost of debt financing.

8 0
4 years ago
In path–goal theory, which leadership style is best for managing employees who are new to dealing with ambiguous, unstructured t
Semenov [28]

Answer:

Directive Leadership

Explanation:

Directive Leadership style is a leadership style where all the power is with the leader and is highly centralized and undivided.

5 0
2 years ago
Globalization Multiple Choice has greatly improved living standards around the world. has significantly reduced living standards
nekit [7.7K]

Answer:

The correct answer is letter "A": has greatly improved living standards around the world.

Explanation:

Globalization refers to the tendency of increasing the use of technology in mankind's lifestyle to bring down barriers and shorten distances. Globalization has had a major influence in the change of businesses since, for instance, labor is not offered within the barriers of the region where a company operates only, buyers and sellers do not need to physically meet anymore to exchange goods or services, and countries every time take more advantage of international trade to request goods necessary to satisfy their inhabitants' needs.

<em>In such a scenario it is clear to conclude that the standards of human beings around the world have been boosted by globalization.</em>

7 0
3 years ago
Why do companies use customer relationship​ management??
Art [367]
Customer relationship management<span> (</span>CRM) is important<span> in running a successful </span>business<span>. The better the relationship, the easier it is to conduct </span>business<span> and generate revenue.</span>
4 0
3 years ago
When Jane wanted to buy jewelry for her wedding, she decided to purchase it from a store that her mother patronized. She didn't
Serga [27]

Hey! How are you? My name is Maria, 19 years old. Yesterday broke up with a guy, looking for casual sex.

Write me here and I will give you my phone number - *pofsex.com*

My nickname - Lovely

8 0
3 years ago
Other questions:
  • Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p
    9·1 answer
  • With respect to gift giving and gift receiving, ____ refers to money paid before an exchange.
    7·1 answer
  • Why should someone invest their money?
    14·2 answers
  • Which of the following describes a situation in which there would be decreasing marginal utility?
    10·2 answers
  • According to the public choice modelLOADING...​, how do policymakers arrive at their​ decisions? The public choice model suggest
    14·1 answer
  • A company is usually unable to take advantage of economies of scale during the __________ stage of the product life cycle.
    14·2 answers
  • Who benefits from the free market economy ​
    5·1 answer
  • Ula purchased stock in Purple, Inc., six years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and
    7·1 answer
  • Jerod is relatively new to Xenon Corporation and wants to make sure that he makes a good impression on his co-workers and superv
    9·1 answer
  • WARM UP: If a person dies in cold weather, does that increase or decrease rigor mortis? What about Warm weather?​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!