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Ivenika [448]
3 years ago
8

Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price assuming that the bond

s' market rate is:
a. 10% per year compounded semiannually.
Round your answers to the nearest dollar.
Business
1 answer:
kvv77 [185]3 years ago
3 0

Answer:

Zero-cupon bond= $376,889.48

Explanation:

Giving the following formula:

Face value= $1,000,000

Mature= 10*2= 20 semesters

Market rate= 0.1/2= 0.05

<u>To calculate the price of the bond, we need to use the following formula:</u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000,000 / (1.05^20)]

Zero-cupon bond= $376,889.48

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Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and
mezya [45]

Answer:

Part 1

Revised depreciation expense =  $32,000

Part 2

The entry to record depreciation expense :

Debit : Depreciation Expense $32,000

Credit : Accumulated Depreciation $32,000

Explanation:

Straight line method charges a fixed depreciation charge over the year of use of an asset.

<em>Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life</em>

2021

Depreciation expense = $80,000

2022

Old Depreciation expense = $80,000

New Depreciation expense = Depreciable Amount ÷ Remaining Useful Life

                                              = ($240,000 - $80,000) ÷ 5

                                              = $32,000

7 0
3 years ago
3. What is meant by economy of scale? Why would costs be im pacted by the quantity of garment that is produced?
Anit [1.1K]

Answer:

Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.

Explanation:

6 0
3 years ago
Accounts receivable $29,500
Alecsey [184]

Answer:

Company's current ratio is 2.4

Explanation:

Current ratio = Current assets / Current liability

Current ratio = 46,880/19,500

Current ratio = 2.404 =2.4

<u>WORKINGS</u>

Current assets:

Account Receivable= 29,500

Office supplies 4,800 (Assuming they are stocks of supplies)

Prepaid insurance 4,680

Cash 7,900

Total current assets=46,880

Current liabilities

Account Payable 13,500

Unearned services revenue 6,000

Total current liability= 19,500

6 0
3 years ago
May is a stockbroker. Due to May's statements, Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is
Anna71 [15]

Answer:

$0

Explanation:

A client can only sue a stockbroker, a financial advisor, etc., only if they made them loss money through fraud or negligence. But in this case, May (stockbroker) apparently made a mistake of value, she did nothing illegal. She might be a terrible broker, but that doesn't make her a criminal. She also didn't breach any fiduciary duty, since investing always carries a risk. If Nora doesn't like to assume risks, then she should purchase government bonds.

4 0
2 years ago
Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund inv
balu736 [363]

Answer:

8.66%

Explanation:

The computation of the rate of return for the investor in the fund is as follows:

= (Net assets at the end  + dividend per share  - nav at the beginning of the year) ÷ (nav at the beginning of the year)

where,

Net assets at the end is

= $203 million + $203 million × 7% - ($217.21 million × 0.75%)

= $203 million + $14.21 million - $1.6291 million

= $217.21 million - $1.6291 million

= $215.58093 million

Dividend per share is

= $5 million ÷ 10 million shares

= 0.5

Nav at the beginning of the year is

= $203 million ÷ 10 million shares

= $20.3

Now the rate of return is

= ($215,.58093 + 0.5 - $20.3) ÷ ($20.3)

= 8.66%

6 0
2 years ago
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