At which stage of problem solving should you discuss the problem with colleagues?

John has to decide whether to buy a zero-coupon bond with very little risk that costs $950 and will pay $1085 in one year or put

defon

Answer:

Different is favorable to the zero-coupon by 2.2%

I would prefer to invest in the zero-coupon as their yield is higher

Explanation:

we divide the future value of the zero coupon with ther current market value to determinate the rate

$\frac{FV}{nominal} =1 + r\\\frac{FV}{nominal} -1 = r\\\\\frac{1,085}{950} -1 = r$

r = 0,14210 = 14.2%

the saving account yields 12% which is lower than the zero coupon rate thereofre I would be better to ivnest in the zero-coupon.

5 0

3 years ago

A process is said to operate within a protection domain which specifies the resources that the process may access. list the ways

kotykmax [81]

<span>A domain can be realized in three different ways. The first way is by user, meaning that access depends on who the particular user is. The second way is how the domain is accessed, meaning, the procedure involved. The last way that a domain can be realized is through the process, meaning, the domain can be realized based on what process is being used to access it.</span>

6 0

4 years ago

One important difference between capital budgeting and security analysis is that in security analysis the analyst must generally

Rashid [163]

Answer: True

Explanation:

Capital budgeting is the method used in the planning process in the organisations used to evaluate the long term project investing. Security analysis is the method of determining the proper value of debt, equity or hybrid securities of an organisation.

In simple words capital budgeting is an evaluation method and security analysis is the valuation method. Capital budgeting is done fro the data that is usually expected in nature whereas security analysis is done on the data which already exists in market.

Security analysis is done for valuing the securities thus the cash flows are given and we have to use that data for valuation purposes but in capital budgeting we can influence the cash flows as we have an objective to achieve .

8 0

3 years ago

The following items were among those reported on Lee Co.'s Income Statement for the year ended December 31, 20x5:

coldgirl [10]

Answer:

C. $410,000

Explanation:

Administrative and general expenses in Lee's multiple - step income statement is $410,000

i.e the Legal and audit fees $170,000 and Rent for office space $240,000 which will amount to $410,000

Note: General and Administrative expenses are incurred in the day-to-day operations of a business and are not tied to a specific function or department within the organisation.

4 0

3 years ago

Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal

DaniilM [7]

Answer:

Current Ratio = 1.67:1

Acid Test Ratio = 0.1:1

Gross Profit Margin = 66%

Explanation:

Cash.......1000

Merchandise inventory...12,500

Store supplies....5800

Prepaid Insurance...2400

Accounts Payable...................10,000

Sales..............................111950

Cost of Goods Sold....38,400

Store supplies still available at fiscal year-end amount to $1,900. Expired insurance, an administrative expense, for the fiscal year is $1,650. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2018.

Therefore Balance Store supplies = 5800-1900

Prepaid Insurance = 2400-1650

Balance Inventory = 11,000

Current Ratio = Current Assets/ Current liabilities

Current Ratio = (1000 cash + 11,000 inventory + 3,900 Store supplies + 750 prepaid insurance) / 10,000 Accounts payable = 16650/10000 = 1.67

Current Ratio = 1.67:1

Acid test Ratio = Current Asset - inventory / Current Liabilities

(16,650 - 11,000 inventory - 3,900 Store supplies - 750 Prepaid Insurance) /10,000 = 0.1

Acid Test Ratio = 0.1:1

Gross Profit Margin = Gross Profit / Sales x 100

Gross Profit = Sales - Cost of Goods Sold = 111,950 - 38400 = 73550

Therefore Gross profit Margin = 73550/111950 x 100 = 66%

Gross Profit Margin = 66%

3 0

3 years ago