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2 years ago

Check your Understanding

Business

1 answer:

8090 [49]2 years ago

4 0

Answer:

1. B

Because we all need to improve on areas involving management

2. A

3. Business plan

4. A

5.B

You might be interested in

what is the current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a yt

Leviafan [203]

The current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a ytm of 13% is $ 130000 .

The entire return anticipated on a bond if it is kept to maturity is known as yield to maturity (YTM). Although it is expressed as an annual rate, yield to maturity is regarded as a long-term bond yield. It is, therefore, the internal rate of return (IRR) of a bond investment assuming the investor retains the bond to maturity, with all scheduled payments made and reinvested at the same pace.

Yield to maturity is comparable to current yield, which calculates how much money would be made by purchasing and keeping a bond for a year by dividing annual cash inflows from that bond by its market price. The value of a coupon paying bond is calculated by discounting the future payments (coupon and principal) by an appropriate discount rate.

The bond characteristics are summarized below:

Par Value = $1,000

Yield = 13% annual (13/2 =6.5% semi-annual)

Coupon = 12% with semi-annual payment of $60

Maturity = 1 year

The value of the bond is calculated as follows:

$1000 of 13% = (13/1000)* 100 =130

Calculate PMT = FV*Coupon Rate

Current price = $1000*130

Price = $ 130000

Learn more about yield to maturity visit: brainly.com/question/28033398

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8 0

6 months ago

The classification and normal balance of the drawing account are a.expense, debit balance b.expense, credit balance c.liability,

Elis [28]

Answer:

The answer is D. owner's equity, debit balance

Explanation:

Drawing is the money or goods taken out from business by its owner. This act is usually common in partnership or sole proprietorship.

A drawing is not an expense, rather it is a reduction in owner's equity.

To credit owner's equity means to increase its equity and to debit owner's equity means to decrease or reduce its equity.

Since, drawing is a reduction in owner's equity, we debit owner's equity making option D. the correct answer.

Option A and B are wrong because drawings are not classified as an expense.

Option C is also wrong because a drawing is never a liability.

7 0

3 years ago

Why is a bank a safe place to put money? The government holds banks accountable for lost funds. The Federal Deposit Insurance Co

Margaret [11]

It's the FDIC.
I hope this helps.

8 0

3 years ago

Assume that the price of a European call expiring in six-month with a strike price of $30 is $2. Suppose that the underlying sto

Komok [63]

Answer:

correct option is c. $2.51

Explanation:

given data

strike price of $30 = $2

underlying stock price = $29

dividend = $0.50

risk-free rate = 10%

solution

we use here pit call parity that is

c - p = s - k $e^{-rt}$ -D .....................1

S is current price and c is call premium and r is rate and t is time

so price of put p will be

p = c-s + k $e^{-rt}$ + D

put here value and we get

p = 2 -29 + 30 $e^{-0.1*0.5}$ + 0.5 $e^{-0.1*2/12}$ + 0.5 $e^{-0.1*5/12}$

p = 2.508

p = $2.51

so correct option is c. $2.51

8 0

3 years ago

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw m

kiruha [24]

Answer:

Omaha would produce a higher Income.

Explanation:

170 Sales revenue per unit

Omaha

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

170 - 20 = 150

$Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin$

9,400 x 150 = 1,410,000

fixed cost (900,000)

Income 510,000

Kansas City

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

170 - 35 = 135

$Contribution \: per \: unit \times units \: sold = Total \: Contribution \: Margin$

10,000 x 135 = 1,350,000

fixed cost (1,000,000)

Income 350,000

4 0

3 years ago