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stepladder [879]

3 years ago

15

As an importer of clothing, would you rather have your products sold by a general merchandise retailer or a specialty store? Why

?

1 answer:

jok3333 [9.3K]3 years ago

6 0

Answer:

Specialty store

Explanation:

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Warson Motors wants to raise $2 million by selling 20-year coupon bonds at par. Comparable bonds in the market have a coupon rat

Kitty [74]

Answer:

He should set coupon rate of 1.98%

Explanation:

Given Data:

Face Value of Bonds = $2,000,000

Coupon rate = 6.3 percent

Issue Value of Bonds = 6.5% * Face Value of Bonds

= 6.5% * $2,000,000

= 0.065 * $2,000,000

= $130,000

Given Annual YTM = 6.30%

Therefore,

Semiannual YTM = 3.15%

Time to Maturity = 20 years

Semiannual Period = 40

Let Semiannual Coupon be $C

$130,000 = $C * PVIFA(3.15%, 40) + $2,000,000

$130,000 = $C * (1 - (1/1.0315)^40) / 0.0315 + $2,000,000 / 1.0315^40

$130,000= $C * 22.56 + $578,443.2

$448,443.2 = $C * 22.56

$C = $19877.80

Semiannual Coupon = $19877.80

Semiannual Coupon Rate = Semiannual Coupon / Face Value of Bonds

Semiannual Coupon Rate = $19877.80 / $2,000,000

Semiannual Coupon Rate = 0.0099 or 0.99%

Annual Coupon Rate = 2 * Semiannual Coupon Rate

Annual Coupon Rate = 2 * 0.99%%

Annual Coupon Rate = 1.98%

4 0

4 years ago

When a channel is exclusive: Group of answer choices A.the firm sells and distributes only high-end products the firm's products

Tanzania [10]

Answer:

A and C

The firm sells and distributes only high-end products

&

It is controlled by market leaders or by firms who have a niche market it is often difficult for a new firm to get access to shelf space in supermarkets.

3 0

3 years ago

A company purchased a computer system at a cost of $25,000. The estimated useful life is 6 years, and the estimated residual val

Alenkinab [10]

Answer:

$5,102

Explanation:

Double declining Method

Cost $ 25,000

B Residual Value $2,000

C = A - B Depreciable base $23,000

D Life [in years] 7

E = C/D Annual SLM depreciation $3,286

F = E/C SLM Rate 14.29%

G = F x 2 DDB Rate 28.57%

.

Depreciation schedule-Double declining

Year Beginning Book Value Depreciation rate Depreciation expense Accumulated Depreciation Ending Book Value

1 $25,000 , 28.57%, $7,143 , $7,143 $17,857

2 $17,857, 28.57%, $ 5,102 , $ 12,245, $12,755

5 0

4 years ago

Jimmy’s Cricket Farm issued a 30-year, 10 % semiannual bond 7 years ago. The bond currently sells for 108 percent of its face va

Alex Ar [27]

Answer:

9.16% and 5.95%

Explanation:

The attachment is shown below:

Given that,

Present value = 108% × $1,000 = $1,080

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 10% ÷ 2 = $50

NPER = 30 years - 7 years × 2 = 46 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is 9.16%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 9.16% × ( 1 - 0.35)

= 5.95%

3 0

3 years ago

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February

Ksenya-84 [330]

Answer:

Dr. Cr.

February 2, 2012

Inventory $30,000

Account Payable $30,000

February 10, 2012

Account Payable $30,000

Discount received $600

Cash $29,400

Explanation:

Term 2/10, n/30 means there is a cash settlement discount of 2% is available if the payment is made within 10 days after the purchase of goods. Net credit period is 30 days. Purchases were made on February 2 and Payment was made on February 10 within the discount period, so Shankar Company is entitled to claim the discount of 2%. Cash will be paid net of discount.

Discount = $30,000 x 2% = $600

Cash Payment = $30,000 - $600 = $29,400

6 0

3 years ago