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denis23 [38]
3 years ago
11

Design Math Quiz

Business
1 answer:
LiRa [457]3 years ago
4 0

Answer:

b) 4,000 + 5 x 1,000

Explanation:

The cost of 1000 items will be the total of

1). the set up cost

2). The per item cost multiplied by 1000 units

Therefore, the cost function will

=set up cost($4000 )  + cost of 1000 items( $5 x 1000)

=$4000 + $5 x 1000

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An annual has 15 years to maturity. It has a coupon rate of 5%, a YTM of 8%. Fill in the cells highlighted in yellow, and aswer
grin007 [14]

Answer:

Market value at 8% YTM  $ 743.2156

at 10% YTM                       $ 619.6960

Explanation:

Assuming the face value is 1,000 as common outstanding American company's bonds:

Market value under the current scenario:

<u>Present value of the coupon payment:</u>

<u />

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon: $1,000 x 5% =  50

time 15 years

rate 0.08

50 \times \frac{1-(1+0.08)^{-15} }{0.08} = PV\\

PV $427.9739

<u>Present Value of the Maturity</u>

<u />

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   15.00

rate  0.08

\frac{1000}{(1 + 0.08)^{15} } = PV  

PV   315.24

PV c $427.9739

PV m  $315.2417

Total $743.2156

If the interest rate in the market increaseby 2% then investor will only trade the bonds to get a yield 2% higher that is 10% so we recalculate the new price:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 50.000

time 15

rate 0.1

50 \times \frac{1-(1+0.1)^{-15} }{0.1} = PV\\

PV $380.3040

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   15.00

rate  0.1

\frac{1000}{(1 + 0.1)^{15} } = PV  

PV   239.39

PV c $380.3040

PV m  $239.3920

Total $619.6960

Giving a lower price than before

3 0
3 years ago
Adjustments for unearned revenues: Select one: a. decrease liabilities and increase revenues. b. increase liabilities and increa
Mnenie [13.5K]

Answer:

(D) decrease revenues and decrease assets

Explanation:

Since the revenue is unearned, its entry in the books needs to be reversed.

When a revenue was recorded in the books, the like journal entry would have been.

Debit Cash/Bank/Receivables Account (thus increasing asset)

Credit Revenue Account (thus increasing revenue)

There, reversing the entry will involve decreasing revenue and decreasing asset.

8 0
3 years ago
A simple discount note results in
Nikolay [14]
A simple discount note results in i<span>nterest that are deducted in advance, this can just be simply called a discount. </span><span> It is usually being confused with markdown. </span><span>Discount is a deduction in the price of a product base on the purchase of the customer while markdown is a reduction of price based on inability to be sold. </span>
6 0
3 years ago
Read 2 more answers
Identifying competitive advantages can be difficult, which explains why they are typically Multiple Choice transactions. tempora
timama [110]

Answer: temporary

Explanation:

7 0
2 years ago
Oceans inc. , a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches
USPshnik [31]

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely void. Option C. This is further explained below.

<h3>What is overstock?</h3>

Generally, Oceans Inc., a distributor of seafood, has reached an agreement with Paul, a commercial fisherman, to purchase any "overstock" of fish that Paul captures in excess of the legal limit for his vessel.

This results in an increase in financial expenses since the investment is left in the storage facility rather than being used to generate cash flow or profits. Drives up the cost of logistics due to the fact that warehouse upkeep sometimes results in unused space and additional labor charges.

In conclusion, Overstocking, often known as "surplus stock," occurs when retailers buy more of a product than they actually move out of their shops. If a retailer overorders goods, they will end up with an excessive amount of stock. This surplus merchandise will either be left on shop shelves or in the warehouse, which may be detrimental to the company's profitability.

Read more about overstock

brainly.com/question/15834336

#SPJ1

Complete question

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

a. enforceable.

b. valid.

c. void.

d. voidable.

3 0
2 years ago
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