Answer:
The independent cases not given in the question are:
a. Case A: Market interest rate (annual): 4 percent.
b. Case B: Market interest rate (annual): 6 percent.
c. Case C: Market interest rate (annual): 8.5 percent.
At 4% issue price is $583,502.44
At 6% issue price is $501,500.00
At 8% issue price is $433,344.51
Explanation:
The price of the bond can be computed using the pv value formula in excel.
=pv(rate,nper,pmt,fv)
rate is the market interest given in the three cases divided by since the bond is a semi-annual interest paying bond. for example 4%/2=2%
nper is the time to maturity multiplied by 2 i.e 10*2=20
pmt is the coupon interest receivable by investor semi-annually which is 6%/2*$501,500=$15045
fv is the face value at $501,500
at 4%
=pv(2%,20,15045,501500)
=$583,502.44
at 6%
=pv(3%,20,15045,501500)
=$501,500.00
At 8%
=pv(4%,20,15045,501500)
=$433,344.51
Answer:
Orange juice, apple juice, cranberry juice, and lychee juice are all product items of Elsem Foods.
Explanation:
A product item is a specific type or variety of product that is different than other products that a company sells.
In this case orange, apple, cranberry and lychee juices are all product items which are part of the tropical fruit juices product line of Elsem Foods.
Elsem's product mix would include chips, cupcakes, candies, crackers, fruit juices, and carbonated drinks (all the product lines that Elsem sells).
Answer:
The amount of loss should Jacob Inc. record on December 31, 2019 is $38,000
Explanation:
Truck Value = $48,000
Annual depreciation = ( $48,000 - $8,000) / 8 = $40,000 / 8= $5,000
First year (2018) = $40,000 - $5,000 = $35,000
Second year (2019) = $35,000 - $5,000 = $30,000
Loss = Truck Value (actual) + estimated residual value= $30,000 + $8,000 = $38,000
Answer:
The correct answer is 10.72% ( Approx.).
Explanation:
According to the scenario, the given data are as follows:
Debt ratio = 46.5%
Capital intensity ratio = 2.51 times
Profit margins = 21%
Dividend payout = 38%
Formula to calculate sustainable growth rate ae as follows:
Sustainable growth rate = (Earnings retention rate × Return on equity ) / ( 1 - (ROE × RR)
where, Retention rate =(1 - dividend payout rate)
= (1-0.38) = 0.62
ROE = Profit margin × Total asset turonver × Equity multipler
= Profit margin × 1/capital intensity ratio × 1/(1-debt ratio)
= .21 × (1/2.51) × 1/(1-.465)
= .21 × 0.398 × 1.869
= 0.1562
=15.62%
So, Sustainable growth rate = (0.1562*0.62) / 1 - (0.1562*0.62)
= 0.096844 / 0.903156
= 0.1072
= 10.72% (approx.)
Hence, the correct answer is 10.72% (approx.).
Answer:
1,996,800 minutes
Explanation:
Calculation for what is the practical capacity of resources supplied in minutes
Practical capacity of resources supplied =52 weeks × 2,400 minutes per week× 80% × 20 employees
Practical capacity of resources supplied= 1,996,800 minutes
Therefore the practical capacity of resources supplied in minutes is 1,996,800 minutes
