10:02 0

Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre

AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × $(1+\frac{r}{n})^{nt}$

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × $(1+\frac{r}{2})^{2\times8}$

or

1.5625 = $(1+\frac{r}{2})^{16}$

or

$(1+\frac{r}{2})$ = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0

3 years ago

Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%

defon

Answer:

Its action would be optimal given an ordering cost of $28.31 per order

Explanation:

According to the given data we have the following:

economic order quantity, EOQ= 55 units

annual demand, D=235

holding cost per one unit per year, H=40%×$11=$4.4

ordering cost, S=?

In order to calculate the ordering cost we would have to use the following formula:

EOQ=√(2×D×S)

(H)

Hence, S=(EOQ)∧2×H

2×D

S=(55)∧2×4.4

2×235

S=13,310

470

S=$28.31

Its action would be optimal given an ordering cost of $28.31 per order

4 0

4 years ago

Alliance Company's budgets production of 39,000 units in January and 43,000 units in the February. Each finished unit requires 4

Ket [755]

Answer:

The correct answer is 160,800 pounds.

Explanation:

According to the scenario, the computation of the given data are as follows:

Budget production in Jan = 39,000 units

Raw material per unit = 4 pounds

So, total raw material needed = 39,000 × 4 pounds = 156,000 pounds

Beginning inventory = 46,800 pounds

Ending inventory = (43,000 × 4 pounds ) × 30% = 51,600 pounds

So, Budgeted material needed = Total raw material + Ending inventory - Beginning inventory

= 156,000 + 51,600 - 46,800

= 160,800 pounds

8 0

4 years ago

In some games, one player or firm moves first and commits to a strategy to which the rival player or firm will subsequently resp

Leni [432]

Answer:

C. sequential games.

Explanation:

Game theory is the learning of analytical types of mediation, ambivalence, and interaction between people, corporations, and governments. In-game theory, a sequential game means any game where an individual contestant picks their move before rest of the performers pick theirs. Importantly, the following performer's necessity has fascinating erudition regarding the first's selection, contrarily, the variation in period would have no strategic effect.

8 0

4 years ago

Equipment costing $16000 is purchased by paying $4000 cash and signing a note payable for the remainder. The journal entry shoul

grigory [225]

Answer:

c. credit to notes payable

Explanation:

Based on the information given we were told that the Equipment which cost the amount of $16000 was purchased by paying the amount of $4000 as cash which means that if the company sign a NOTE PAYABLE for the remainder. The journal entry should include a: CREDIT TO NOTES PAYABLE

5 0

3 years ago