Exam Instructions

A firm's bonds have a maturity of 10 years with a $1,000 face value, a 9 percent semiannual coupon, are callable in 5 years at $

Sladkaya [172]

Answer:

Yield to maturity is 3.94%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

Face value = F = $1,000

Coupon payment = $1,000 x 9% = $90/2 = $45 semiannually

Selling price = P = $1080

Number of payment = n = 10 years x 2 = 20

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = [ $45 + ( 1000 - 1080 ) / 20 ] / [ (1,000 + 1080 ) / 2 ]

Yield to maturity = [ $45 - 4 ] / 1040 = $41 /1040 = 0.394 = 3.94%

4 0

4 years ago

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a

drek231 [11]

Answer:

The total cost of the units completed and transferred out of the department was: $324,900

Explanation:

First Calculate Total Cost per Equivalent Unit

Materials $2.00

Conversion $3.70

Total $5.70

Then, Calculate the Cost of Units Completed and Transferred

<em>Units Completed and Transferred × Total Cost per Equivalent Unit</em>

57,000 × $5.70

$324,900

7 0

4 years ago

Marlow Company produces hand tools. A production budget for the next four months is as follows: March 10,300 units, April 13,300

madreJ [45]

Answer:

13,000 units

Explanation:

Given that,

Total production in April = 13,300 units

Total sales in May = 16,000 units

Ending finished goods inventory = 10% of the following month’s sales

Therefore, the number of units sold in April is determined by deducting ending finished goods inventory of April from the total production of units in April and beginning finished goods inventory.

Let the sales in April be x,

The beginning finished goods inventory of April is same as the ending inventory of March.

Ending finished goods inventory in March:

= 10% of sales in April

= 0.1 x

Ending finished goods inventory in April:

= 10% of sales in May

= 0.1 × 16,000 units

= 1,600 units

Therefore, the number of units in April is calculated as follows:

Ending inventory = Total production in April + Beginning inventory of April - Sales

1,600 units = 13,300 units + 0.1x - x

0.9x = 13,300 - 1,600

0.9x = 11,700

x = 13,000 units

Hence, the number of units sold in April is 13,000.

3 0

3 years ago

Puffin Corporation makes a property distribution to its sole shareholder, Bonnie. The property distributed is a building (basis

Olegator [25]

Answer:

correct option is $16,000

Explanation:

given data

basis = $30,000

fair market value = $200,000

liability = $16,000

current E&P = $30,000

to find out

Puffin's E&P after taking into account the distribution

solution

we know that E and P will decrease by higher of the adjusted basis and fair market value of the distributed property

so distribution loss is not taken into consideration to find out E and P

and we have given current E & P of Puffin is = $30,000 that is reduce to

reduce = basis - liability

reduce = $30000 - $16000 = $14000

so after distribution current E & P remaining will be $16000

so correct option is $16,000

5 0

4 years ago

In the U.S. current account, most of the trade deficit results from an excess of imported A. merchandise and services B. merchan

Lina20 [59]

In the U.S. current account, most of the trade deficit results from an excess of imported <span>merchandise (B).</span>

3 0

3 years ago