The Current yield on the bonds are calculated as :
Current yield = Annual coupon payments/ Current price
Here, we assume the face value of the bond to be $1000
Annual coupon payments are 10.6% of the face value or 0.106*1000 = 106
Current price = 108.1% of the face value = 1.081* 1000 = 1081
Current Yield = 106/1081
Current Yield = 0.098057 = 9.8057%
Current Yield = 9.81% (Rounded to two decimals)
Answer:
An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective, yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.
Mental accounting
Explanation:
Mental accounting is the concept with which the management sciences explain the mental processes in which people perform categorization, evaluation, and coding of economics. It was proposed by Richard Thaler and suggests that people can perform it with easiness when they manage the accounting of their finance in their minds.
Answer:
The break-even point in units will increase by 400 units.
Explanation:
Giving the following information:
Fixed costs= $60,000
Selling price= $4.00
Unitary variable cost= $1
First, we need to calculate the current break-even point for the current situation.
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 6,000 / (4 - 1)
Break-even point in units= 2,000 units
<u>Now, the unitary variable cost is $1.5</u>
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Break-even point in units= 6,000 / (4 - 1.5)
Break-even point in units= 2,400 units
The break-even point in units will increase by 400 units.
Older workers are also more likely to become self-employed, with
small businesses or consulting work, some employers offer phased
retirement (called "bridge work"). The tendency for elderly
people to perceive, prefer, and remember positive images and experiences more
than negative ones.
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Answer:please see below for answes
Explanation:
1. Several individuals operate the cash register using the same register drawer--- Weak Internal control --- Establishment of responsibilities is violated.
2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities-----Good---The procedures follows independent internal verification.
3. Joe Cockrell writes checks and also records cash payment entries.-----Weak Internal control ------Segregation of duties is violated
4. One individual orders inventory, while a different individual authorizes payments.---- Good---- The procedures follow the Segregation of duties .
5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.---- Weak-----The procedure here does not follow good documentation and procedures.
----Internal controls are measures laid out by companies to ensure its employees are compliant in following set regulations and standards to ensure financial reports are not manipulated and promoting effective operations in order safeguard it's assets from unauthorized use or theft.
Some internal controls include Segregation of duties, documentation procedures, proper authorization, establishment of responsibilities etc.
