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bezimeni [28]
3 years ago
8

If an investor purchases a bond when its current yield is higher than the coupon rate, then the bond's price will be expected to

::_______
a. increase over time, reaching par value at maturity
b. exceed the face value at maturity
c. be less than the face value at maturity
d. decline over time, reaching par value at maturity
Business
1 answer:
SCORPION-xisa [38]3 years ago
7 0

Answer:

a. increase over time, reaching par value at maturity

Explanation:

If current yield is more than coupon rate, it means that the bond price is less than par value, as time to maturity decreases bond value amortizes to par value. Thus, If an investor purchases a bond when its current yield is higher than the coupon rate, then the bond's price will be expected to <u>increase over time, reaching par value at maturity.</u>

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Leader Corporation Company uses a job-order costing system with a single plantwide pre-determined overhead rate based on machine
taurus [48]

Answer:

Selling price per unit= $196

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (400,000 / 50,000) + 6

Predetermined manufacturing overhead rate= $14 per machine hour

<u>Now, we can allocate overhead and calculate the total cost:</u>

<u></u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 14*100= $1,400

Total cost= 1,400 + 750 + 2,750

Total cost= $4,900

<u>Finally, the selling price per unit:</u>

<u></u>

Unitary cost= 4,900/40= $122.5

Selling price= 122.5*1.6

Selling price= $196

3 0
3 years ago
Street Company's fixed expenses total $150,000, its variable expense ratio is 60% and its variable expenses are $4.50 per unit.
Len [333]

Answer:

Break even in units = 50000 units

Explanation:

Break even point is a point where total revenues equal total cost and the firm makes no profit or no loss. Break even point in units is the number of units that must be sold in order for the firm to break even. The formula to calculate break even in units is,

Break even in units = Fixed costs / Contribution margin per unit

Where,

Contribution margin per unit = Selling price per unit - Variable cost per unit

First we will calculate the contribution margin per unit.

A variable cost ratio of 60% means that variable costs are 60% of selling price. This means that the remaining 40% is contribution margin per unit.

Now if the variable cost is 4.5 per unit which are 60% of selling price, the the selling price per unit will be,

4.5 = 0.6 / Selling price

Selling price = 4.5 / 0.6

Selling price = 7.5 per unit

Contribution margin per unit = 7.5 - 4.5 = 3 per unit

Break even in units = 150000 / 3

Break even in units = 50000 units

8 0
2 years ago
________ is the shift from people making their own fun to people purchasing it as goods and services.
Greeley [361]

The commodification of recreational activities is the shift from people making their own fun to people purchasing it as goods and services.

<h3>What is commodification?</h3>

This is when values are assigned to objects or things which are previously meant for fun. Commodification occurs when something that used to have intrinsic value gradually develops a monetary value like water, or sunshine, or knowledge as an example.

Here, human and socio cultural value are converted into market value which also applies to goods, services, ideas, and other forms and products.

Commodification provides benefit to a business environment which includes opportunities for developing new products and services inorder to meet ever changing customer needs and demand.

Learn more about commodification here: brainly.com/question/13235742

#SPJ1

6 0
2 years ago
Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating
Ierofanga [76]

Answer:

1. Time value of money.

2. Future value.

3. Amortized loan.

4. Annual percentage rate.

5. Annuity due.

6. Amortization schedule.

7. Discounting.

8. Opportunity cost of funds.

9. Perpetuity.

10. Ordinary annuity.

11. A

Explanation:

1. <u>Time value of money</u>: concept that maintains that the owner of a cash flow will value it differently, depending on when it occur.

2. <u>Future value</u>: the amount to which an individual cash flow or series of cash payments or receipt will grow over a period of time when earning interest at a given rate of interest.

3. <u>Amortized loan</u>: a type of security that is frequently used in mortgages and requires that the loan payment contain both interest and loan principal.

4. <u>Annual percentage rate</u>: an interest rate that reflects the return required by a lender and paid by a borrower, expressed as a percentage of the principal borrowed.

5. <u>Annuity due</u>: A series of equal cash flows that occur at the end of each of the equally rate spaced intervals (such as daily, monthly, quarterly, and so on)

6. <u>Amortization schedule</u>: a table that reports the results of the disaggregation of each payment on an amortized loan, such as a mortgage, into its interest and loan repayment components.

7. <u>Discounting</u>: a process that involves calculating the current value of a future cash flow or series of cash flows based on a certain interest rate.

8. <u>Opportunity cost of funds</u>: a rate that represents the return on an investor's best available alternative investment of equal risk.

9. <u>Perpetuity</u>: a series of equal (constant) cash flows (receipts or payments) that are schedule expected to continue forever.

10. <u>Ordinary annuity</u>: a series of equal cash flows that occur at the beginning of each of the equally spaced intervals (such as daily, monthly, quarterly, and so on).

11. PMT x (1-(1/ (1 + r)/r) x (1 +r): an equation that can be used to solve for the present value of an annuity due. It is known as Present Value of an Annuity.

6 0
3 years ago
Westbank Real Estate, Inc. owns 10 acres of forested land. Westbank wants the land cleared in order to build houses. Westbank em
sdas [7]

Answer: Yes it does.

Explanation:

The Statute of Frauds holds that there are some contracts including real estate contracts that need to be in written form and then signed to be binding. Some of those contracts include, contracts of sale of goods worth more than $500 as well as contracts that cannot be completed within a year.

We can agree that the trees and top soil are definitely over $500 in value and so this falls under the Statute.

The main bone of contention here however, is probably if the Electronic signature that Hardell used to signed the memorandum entitles the aggrement to legal protection under the Statue of Frauds which requires a signature.

The answer is yes.

The United States Electronic Signatures in Global and National Commerce Act is a federal law. A main provision of this Act is to give electronic signatures the same significance as handwritten signatures. This law is meant to apply to wherever US Federal law applies including states, and US territories. States generally have the right to either accept this law or follow a similar one called the Uniform Electronic Transactions Act (‘UETA’) which was passed in 1999 and bestows upon Electronic contracts, similar status as paper contracts.

The Electronic signature used by Hardell therefore falls under the Statute of Frauds.

8 0
2 years ago
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