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Svetradugi [14.3K]

3 years ago

8

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

a.income statement b.statement of cash flows c.statement of stockholders' equity d.balance sheet

1 answer:

Ivanshal [37]3 years ago

3 0

Answer:

Income statement

Explanation:

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Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will

Solnce55 [7]

Answer:

Duration of liability (perpetual) = (1 + y) / y

= (1 + 17.5%) / 17.5%

= 6.71

Value of liability = Cash Flow / yield

= $3.5 million / 17.5%

= $20 million

a. Assume you invest w in 5-year bond and 1-w in 25-year bond such that the duration of the portfolio is 6.71

6.71 = w x 4 + (1 - w) x 16

w = (16 - 6.71) / (16 - 4)

w = 77% in 5-year bond

1 - w = 28% in 25 year bond

Market Value of 5 year bond = 77% * $20 million = $15.4 million

Market Value of 20 year bond = 23% * $20 million = $4.6 million

b. Market Price of 20 year bond can be calculated using PV function on a calculator

N = 25, I/Y = 17.5%, PMT = 9, FV = 100

Price = Present Value (25,17.5%, 9 ,100)

Price = 52.29042644

Price = $52.30

Par Value of 25 year bond = Market Value /% Price

Par Value of 25 year bond = $4.6 million / 50.83%

Par Value of 25 year bond = $9,049,774

6 0

3 years ago

What type of budget is used to forecast income and expense for ongoing business operations?

Kruka [31]

Answer:

The correct answer is: Operating budget.

Explanation:

An operating budget is an estimate a business make of the expenses and revenue it plans to book in its ongoing operations. Operating budgets can also be used to forecast future operating corporate periods. This type of budget mainly includes the <em>number of sales expected in dollars</em>, <em>fixed and variable costs</em> as well as <em>operating expenses</em> such as loan payments or depreciation.

4 0

4 years ago

Tar Heel Blue, Inc. has a beta of 1.8 and a standard deviation of 28%. The risk free rate is 1.5% and the market expected return

Ivan

Answer:

12.84

Explanation:

In this question, we use the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 1.5% + 1.80 × (7.8% - 1.5%)

= 1.5% + 1.80 × 6.3%

= 1.5% + 11.34%

= 12.84

Since the standard deviation is not relevant. Hence, ignored it

8 0

4 years ago

At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit bala

levacccp [35]

Answer:

d. $19,500 and $25,000

Explanation:

Provided balance of Accounts Receivables at year end = $550,000

Allowance for Doubtful Debts Account = $5,500

Sales for the year = $2,500,000

Now, provided un-collectible accounts receivables = $25,000

Thus year end balance of allowance for doubtful debts shall be $25,000

Therefore, entry shall be of amount = $25,000 - $5,500 = $19,500

after that balance at year end of allowance for doubtful debts = $5,500 + $19,500 = $25,000

5 0

4 years ago

Clark wanted his workers to work for twelve hours every day instead of the eight hours they were supposed to. The workers were n

djyliett [7]

Answer:

a. soldiering

Explanation:

According to my research on scientific management studies, I can say that based on the information provided within the question this behavior of the workers is known as soldiering. This term is when a group of workers pressure each other to maintain the work-flow and productivity low, since if productivity is maintained low then the wages would stay up.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0

3 years ago