1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maksim231197 [3]
3 years ago
15

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 6%. These b

onds will sell at a price that is:
Business
1 answer:
Dennis_Churaev [7]3 years ago
8 0

Answer:

More than $500,000.

Explanation:

In the case when the coupon rate is more than the market interest rate so the bond would be on premium

And, if the coupon rate is less than the market interest rate so the bond would be on discount

And if both are equal so it should be in par

Now in the given case, since the rate of interest is 7% and the market rate of interest is 6% so it would be on premium

That means the bond price would sell at more than $500,000

You might be interested in
Which subtype of ADHD is characterized by lethargic, daydreamy behavior?
OverLord2011 [107]

Answer:

predominantly inattentive

Explanation:

ADHD is a disorder of neurobiological origin, in which there is a deficit in the functional structure of certain brain areas or centers related to the regulation of different attention processes.

The child with ADHD has difficulties in selecting the relevant focus of attention, (he does not know what he has to attend to) is slow in motor tasks and cognitive tasks, is easily distracted, and all this can lead to school age at learning difficulties, as well as having an impact on the emotional and personal areas of the child, (low self-esteem, anxiety, behavioral problems ...)

6 0
3 years ago
Suppose the world price is​ $20. a. Is this country an exporter or an​ importer? A. exporter B. importer b. How many units of th
Anna007 [38]

Question Completion:

Answer:

1. This country is an

B. importer.

2. The units of the good that are exported/imported are 200.

3. Chart filling

Area                            Before Trade    After Trade     Change Value

                                           Value            Value  

Consumer Surplus ​          $4,000            $9,000                ​$5,000

Producer Surplus    ​         $4,000             ​$1,000              ​$−3,000

Total Welfare                   ​$8,000           ​$10,000                 ​$2,000

4. The group that gains when the country allows free international trade.

B. consumers

5. The group that loses from free trade in this case is:

D. producers

6. A. net gain

7. The overall value of the gain is $2,000

Explanation:

a) Data and Calculations:

Area                            Before Trade    After Trade     Change

                                       Value                  Value          Value  

Consumer Surplus ​          $?                          ​$?               ​$?

Producer Surplus    ​         $?                ​          ​$?               ​$?

Total Welfare                   ​$ ?                        ​ ​ $?                 ​$?

Consumer surplus = Total quantity demanded at consumer's price minus equilibrium quantity * equilibrium price

Producer surplus = Total quantity supplied at supplier's price minus equilibrium quantity * equilibrium price

Change value at consumer surplus = $5,000 ($9,000 - $4,000)

Change value at producer surplus = $-3,000 ($1,000 - $4,000)

Total welfare before trade = $8,000 ($4,000 + $4,000)

Total welfare after trade = $10,000 ($9,000 + $1,000)

The net gain from free international trade is the difference between the total welfare value after trade and before trade = $2,000 ($10,000 - $8,000)

6 0
3 years ago
Sutherland manufactures and sells 50,000 laser printers each month. A principal component part in each printer is its paper feed
BigorU [14]

Answer:

Sutherland

a. The average unit cost of manufacturing each paper feed drive is:

= $56.25.

b. The incremental unit cost of producing an additional paper feed drive is:

= $170.

c. The per-unit sales price that Sutherland should charge Desk-Mate to earn $140,000 in monthly pre-tax profit on the sale of drives to Desk-Mate is:

= $184.

Explanation:

a) Data and Calculations:

Production and sales of laser printers per month = 50,000

Monthly production capacity for paper feed drives = 80,000

Unit costs of producing drives:

Variable costs per unit:

Direct materials                                 $ 23

Direct labor                                            15

Variable manufacturing overhead        2

Variable cost per unit                       $40   $3,200,000 (80,000 * $40)

Fixed costs per month:

Fixed manufacturing overhead                  $1,300,000

Total production costs =                            $4,500,000

Average unit cost =                                     $56.25 ($4,500,000/80,000)

Incremental unit cost of producing an additional paper feed drive:

Variable cost = $40 * 10,000 =         $400,000

Additional fixed cost per month = $1,300,000

Total incremental costs =              $1,700,000

Unit cost = $170 ($1,700,000/10,000)

Total incremental costs =   $1,700,000

Monthly pre-tax target profit   140,000

Expected sales revenue = $1,840,000

Sales price per drive = $184 ($1,840,000/10,000)

8 0
3 years ago
If a patent lawyer works for a startup without cash compensation, but receives instead shares in the presumably soon-to-be-succe
olga_2 [115]
1 or 2 mmight be the right answers but please let me know if im wrong
5 0
3 years ago
Read 2 more answers
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs abov
Ne4ueva [31]

Answer:

The correct option is d. Increase by $19,500.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Pluto Incorporated provided the following information regarding its single product:

Direct materials used = $240,000

Direct labor incurred = $420,000

Variable manufacturing overhead = $160,000

Fixed manufacturing overhead = $100,000

Variable selling and administrative expenses = $60,000

Fixed selling and administrative expenses = $20,000

The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.

What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product? Note: The special order units would not require any variable selling and administrative expenses.

a. Decrease by $19,500

b. Decrease by $18,000

c. Increase by $18,000

d. Increase by $19,500

The explanation of the answer is now provided as follows:

We first calculate the expected total relevant cost of the special order as follows:

Direct materials cost per unit = Direct materials used / Annual units = $240,000 / 40,000 = $6.00

Direct labor cost per unit = Direct labor incurred / Annual units = $420,000 / 40,000 = $10.50

Variable manufacturing overhead per unit = Variable manufacturing overhead / Annual units = $160,000 / 40,000 = $4.00

Expected special order total relevant cost = (Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit) * Special order units = ($6.00 + $10.50 + $4.00) * 1,000 = $20.50 * 1,000 = $20,500

Expected revenue from the special order = Special order units * Special order selling price per unit = 1,000 * $40 = $40,000

Expected profit from the special order = Expected revenue from the special order - Expected special order total relevant cost = $40,000 - $20,500 = $19,500

Since the expected profit from the special order is $19,500, it therefore implies that accepting it would increase operating income by $19,500.

Therefore, the correct option is d. Increase by $19,500.

6 0
3 years ago
Other questions:
  • What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 deci
    12·1 answer
  • The political business cycle refers to the phenomenon that just before elections, politicians enact _________ policies. After th
    7·1 answer
  • What are the advantages of following a strict repayment schedule? Check all that apply.
    15·1 answer
  • Billy has a​ $20 budget to spend on yogurt and cereal. Yogurt cost​ $2 each and cereal costs​ $4 each. Suppose that the quantity
    5·1 answer
  • common to this work. Note that common contexts are listed toward the top, and less common contexts are listed toward the bottom.
    11·2 answers
  • Consider Figure 9.2 on page 205 of our textbook. Suppose P0 is $10 and P1 is $11. Suppose a new firm with the same LRAC curve as
    15·1 answer
  • A company reported the following amounts at the end of the year total sales revenue = 550000; sales discounts = $12,000; sales r
    13·1 answer
  • 5) Big Corporation had the following sales over the last 4 years; Year Sales (in 000s) bgs 1 225.00 2 236.25 3 243.125 4 248.00
    11·1 answer
  • Crane Inc. had beginning inventory of $12,000 at cost and $19,600 at retail. Net purchases were $105,056 at cost and $159,600 at
    10·1 answer
  • mark and shirley, married filing jointly with a modified adjusted gross income (magi) of $92,300, adopted their son, matthew in
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!