Answer:
Refer below.
Explanation:
Answer is intended both & Done.
Answer:
The price of the bond is $659.64.
Explanation:
C = coupon payment = $62.00 (Par Value * Coupon Rate)
n = number of years = 6
i = market rate, or required yield = 15 = 0.15 = 0.15 /2 = 0.075
k = number of coupon payments in 1 year = 2
P = value at maturity, or par value = $1000
BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]
BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= $239.79 + $419.85 = $659.64
Answer: $4,800
Explanation:
First find the Annual holding cost:
= Average inventory * Cost of holding a unit
= 500/2 * 1 * 12 months
= $3,000
Then find the Annual ordering cost:
= Expected units to be sold/ Units ordered * Ordering cost
= 9,000/500 * 100
= $1,800
Annual Inventory cost = Annual holding cost + Annual ordering cost
= 3,000 + 1,800
= $4,800
Answer:
Economic exposure.
Explanation:
Economic exposure is also known as operating exporter is known as a phenomenon where a business's cash flow is affected by currency rate fluctuations. It occurs over the long term and affects product value.
Businesses protect themselves from economic exposure by operational strategies mostly through diversification, and currency risk mitigation strategies.
In this instance Majestic Co a United States company has a competitor in Belgium and so tend to be affected by foreign exchange fluctuations of the dollar to Belgium currency.
Answer:
c. $33,000
Explanation:
The computation of the bad debt expense is shown below:
= Estimated uncollectible amount + debit balance of allowance for doubtful accounts
= $25,000 + $8,000
= $33,000
To find out the bad debt expense, we have to add the estimated uncollectible amount and the debit balance of allowance for doubtful accounts so that an accurate amount can come.
