Shares with the right vote and dividends are paid as residual claimants against other shareholders

Parkway Void Co. issued 16-year bonds two years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If thes

NNADVOKAT [17]

Answer:

The annual YTM will be = 0.07518796992 or 7.518796992% rounded off to 7.52%

Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n)) / (F + P / 2) ]

Where,

C is the coupon payment

F is the Face value of the bond

P is the current value of the bond

n is the number of years to maturity

Lets assume the par value is 1000.

Current value = 1000 * 109% = 1090

Coupon payment = 1000 * 0.085 * 6/12 = 42.5

Number of periods remaining till maturity = 14 * 2 = 28

semi annual YTM = [ (42.5 + (1000 - 1090 / 28)) / (1000 + 1090 / 2)

semi annual YTM = 0.03759398496 or 3.759398496% rounded off to 3.76%

The annual YTM will be = 0.03759398496 * 2 = 0.07518796992 or 7.518796992% rounded off to 7.52%

7 0

3 years ago

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. as a result,

Stells [14]

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. as a result, demand for healthy foods is rising steadily, creating an opportunity for marketers to exploit this need market. Needs range from basic survival desires satisfied by using necessities, to cultural, highbrow, and social desires satisfied with the aid of necessaries.

3 0

3 years ago

In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be

Angelina_Jolie [31]

Answer:

Safety stock

Explanation:

Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.

Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same

6 0

3 years ago

What is a fixed cost

nignag [31]

A cost is a charity and a fixed cost basically mean that the cost is fixed

8 0

3 years ago

Benet Company has budgeted the following unit sales:

Reika [66]

Answer:

Benet Company

Production Budget for 2019:

Quarter Quarter Quarter Quarter

1 2 3 4

Ending inventory 38,000 52,000 75,000 24,000

Units Sold 105,000 190,000 260,000 375,000

Units available for

production 143,000 242,000 335,000 399,000

Beginning Inventory 21,000 38,000 52,000 75,000

Units produced 122,000 204,000 283,000 324,000

Explanation:

a) Data and Calculations:

2019 2020

Quarter Units Quarter Units

1 105,000 1 120,000

2 190,000

3 260,000

4 375,000

Ending inventory

December 31, 2018 = 21,000

Quarter 1, 2019 = 38,000 (190,000 * 20%)

Quarter 2, 2019 = 52,000 (260,000 * 20%)

Quarter 3, 2019 = 75,000 (375,000 * 20%)

Quarter 4, 2019 = 24,000 (120,000 * 20)

Production Budget for 2019:

Quarter Quarter Quarter Quarter

1 2 3 4

Ending inventory 38,000 52,000 75,000 24,000

Units Sold 105,000 190,000 260,000 375,000

Units available for

production 143,000 242,000 335,000 399,000

Beginning Inventory 21,000 38,000 52,000 75,000

Units produced 122,000 204,000 283,000 324,000

8 0

3 years ago

Shares with the right vote and dividends are paid as residual claimants against other shareholders​

Shares with the right vote and dividends are paid as residual claimants against other shareholders