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11111nata11111 [884]
4 years ago
9

McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a cu

rrent price of $1,045. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
creativ13 [48]4 years ago
8 0

Answer:

5.75%

Explanation:

First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.

<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.

Maturity of the bond ; N = 14.5*2 = 29

Semi-annual rate ; I/Y = (5.3%/2) = 2.65%

Face value ; FV = 1000

Price of the bond or PV = -1045

then compute semiannual coupon payment ;  CPT PMT = $28.743

Annual coupon rate is therefore = $28.743*2 = $57.486

Coupon rate = coupon payment / face value

Coupon rate = $57.486 / 1000

= 0.05749 or 5.75%

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Answer:

<u>Situational Influences </u>

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Situational influences refer to those situation or state conditions which influence a buyers behavior. Physical, social and time factors or buyers own moods, affect a buyers buying habits i.e what the buyers buy and the quantity of purchases.

Physical surroundings refer to the physical situation of the buyer i.e the effect of location of the store, the design of the store etc.

Social surroundings refer to the effect of people who surround the buyer while he is considering a purchase.

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Collectively, these comprise situational influences in consumer buying decision process.

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Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 3
irina [24]

Answer:

5,850 units

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= 600 units × 0.4

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= 6,000 - 600

= 5,400 units are completed

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4 0
3 years ago
Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outsta
Vlad [161]

Answer:

<h2>a. The Preferred stock is noncumulative.</h2>

Preferred stock

= 7,710 * 17.5 * 8%

= $‭10,794‬

Per share

= 10,794/7,710

= $1.40

Common Shareholders.

= 63,800 - 10,794

= $‭53,006‬

Per share

= ‭53,006‬/49,000

= $1.08

<h2>b. Preferred stock is cumulative. </h2>

This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.

Preferred stock

= 7,710 * 3 years (2017,2018,2019)

= $‭23,130‬

Per share = 23,130/7,710

= $3

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= 63,800 - 23,130

= $‭40,670‬

Per share

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c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?

b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.

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