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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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A disadvantage of using social media for marketing research is

Elis [28]

Answer:

the sample of individuals from whom content is gleaned may not be statistically representative of the marketplace.

Explanation:

The product that is promoted by Marketing team tend to be suitable only for costumers with specific set of characteristics. (Could be depended on their age, income, gender, etc)

The data that is gained from internet more often than not will come from anonymous Account. You can never be sure about the account's owner identity and characteristic.

Which mean that the person from which the data is taken do not necessarily represent the market demographic that the marketing team want to target.

6 0

4 years ago

Correll Corporation is considering a capital budgeting project that would require investing $264,000 in equipment with an expect

lapo4ka [179]

Answer:

Income Tax Expense in Year 2 = 32400 USD

Explanation:

The income tax expense can be calculated from the following given data:

First of all we need to find the incremental revenue:

Incremental Revenue = Incremental Sales - Incremental expenses

Incremental Sales = 630,000 USD

Incremental expenses = 456,000 USD

So, plug in the values:

Incremental Revenue = 630,000 USD - 456,000 USD

Incremental Revenue = 174000 USD

Now, we need to find the less annual depreciation:

Less Annual Depreciation = Investment/ Expected Life

Investment = 264,000 USD

Expected Life = 4 years

Less Annual Depreciation = 264,000/4

Less Annual Depreciation = 66000 USD

Now, the next step is to calculate the operating incremental income:

Operating incremental income = Incremental Revenue - Less Annual Depreciation

Incremental revenue = 174000 USD

Less Annual Depreciation = 66000 USD

Operating incremental income = 174000 USD - 66000 USD

Operating incremental income = 108000 USD

30% tax at the operating incremental income is the income tax expense in year 2.

Income Tax Expense in Year 2 = 108000 x 30%

Income Tax Expense in Year 2 = 32400 USD

6 0

3 years ago

The consumer price index is the:

Dmitry [639]

Answer:

B. cost of a market basket of goods and services typically consumed in the current period.

5 0

4 years ago

Read 2 more answers

Victor Mineli, the new controller of Blossom Company, has reviewed the expected useful lives and salvage values of selected depr

rewona [7]

a. Based on the information given the revised depreciation is:

Building $1,250

Warehouse $5,993

b. Debit Depreciation expense $13,375

Credit Accumulated depreciation-Building $13,375

a. Victor Mineli Revised depreciation

Revised depreciation for Building

Building= ($700,000-$129,900-$35,100)/40

Building= $535,000/40

Building=$13,375

Revised depreciation for Warehouse

Warehouse=($115,000-$22,100-$3,000)/15

Warehouse =$89,900/15

Warehouse=$5,993

b. Journal entry

Debit Depreciation expense $13,375

Credit Accumulated depreciation-Building $13,375

Learn more here:

brainly.com/question/14278419?referrer=searchResults

8 0

3 years ago

The information below relates to the Cash account in the ledger of Novak Company.

VLD [36.1K]

Answer:

A) account reconciliation

Bank account reconciliation:

Bank account balance $16,682

+ deposits in transit $4,580

- outstanding checks $2,513

reconciled bank account $18,749

Cash account reconciliation:

Cash account balance $17,664

+ Note collected $1,660

+ Interest revenue $52

- NSF check (R. Nance) $555

- Bank fees (safety deposit box rent) $72

reconciled cash account $18,749

B) Adjusting entries

September 30, NSF check

Dr Accounts receivable 555

Cr Cash 555

September 30, collection of notes receivable

Dr Cash 1,660

Cr Notes receivable 1,623

Cr Interest revenue 37

4 0

3 years ago