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3 years ago

You purchase a Par Value $1,000, 9% coupon, two-year maturity bond for $990. What is the annual required rate of return (YTM)?

Business

1 answer:

Mrrafil [7]3 years ago

8 0

Answer:

the annual required rate of return is 9.57%

Explanation:

The computation of the required rate of return is shown below:

Given that

Future value = $1,000

Present value = $990

PMT = $1,000 × 9% = $90

NPER = 2

The formula is shown below:

=RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the annual required rate of return is 9.57%

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Stephanie, Inc. sells its product for $40. The variable costs are $18 per unit. Fixed costsare $16,000. The company is consideri

Naddika [18.5K]

Answer:

The current BEP is 727 units

with the proposed change it will be 875 units

The change increase the break even point by 148 units

Explanation:

The BEP in units will be:

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

Where:

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

40 - 18 = 22 contribution margin

then we calcualte BEP

16,000 / 22 = 727,27 units

with the proposed change:

40 - 16 = 24 contribution margin

16,000 + 5,000 = 21,000 fixed cost

21,000 / 24 = 875

875 - 727 = 148

3 0

3 years ago

Which of the following is an example of an entrepreneur?

Alexxx [7]

Answer:

Here, Kevin is an entrepreneur.

Explanation:

An entrepreneur is someone who has creative ideas that identifies the need of the society and uses the opportunity to earn profit.
There is no specific age for entrepreneurs. Creativity, thirst for work, optimism are some characteristics of entrepreneurs.
They are very curious, optimistic and opportunistic. They train their minds to find solution to problems in the surrounding.
Here, Kevin used his own ideas and identified the need for business in graphic design and started a graphic design business evaluating its risks and benefits. SO, he is the entrepreneur.

5 0

3 years ago

Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger bo

tamaranim1 [39]

Answer:

Silver Enterprises Post Merger Balance Sheet

Current Assets 12,920 Current liabilities 10,460

Other Asset 4,480 Long-term debt 19,770

Net Fixed Asset 24,810 Equity 17,450

Goodwill 5,470

$47,880 $47,680

Explanation:

Current assets = 10,000 + 2,920 = 12,920

Other assets = 3,100 + 1,380 = 4,480

Current liabilities = 7,840 + 2,620 = 10,460

Net fixed assets = 17,300 + 7,510= 24,810

Long-term debt = 5,110 + 14,660 = 19,770

Equity = $17,450

8 0

3 years ago

Which of the following conditions will maximize the amount of interest you earn?

horrorfan [7]

Answer

A. High interest rate and long time period conditions will maximize the amounts of interest you earn.

Explanation

When interest rates are high, there will be a higher increase from the savings and money invested that was first placed. Continuation of such a condition will in the long run caused an accumulation of the added interest thus making it to keep growing larger if not withdrawn.

7 0

3 years ago

Read 2 more answers

A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Bi

Irina-Kira [14]

Answer:

Expected annual volume = 18400 units

For Memphis:

Annual cost for building ,equipment and administration = $42800

Annual labor and material cost =Annual volume x cost per unit = 18400 x $8 = $147200

Annual transportation cost = $50000

So,Total cost = $42800 + $147200 + $ 50000 = $240000

For Biloxi:

Annual cost for building ,equipment and administration = $60000

Annual labor and material cost =Annual volume x cost per unit = 18400 x $4 = $73600

Annual transportation cost = $60000

So,Total cost = $60000 + $73600 + $ 60000 = $193600

For Birmingham:

Annual cost for building ,equipment and administration = $100000

Annual labor and material cost =Annual volume x cost per unit = 18400 x $5 = 92000

Annual transportation cost = $27600

So,Total cost = $100000 + $92000 + $27600 = $219600

Explanation:

4 0

3 years ago