Answer:
= $877.32
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Jasper Inc can be worked out as follows:
Step 1
<em>PV of interest payments</em>
<em>Semi annul interest paymen</em>t
= 4.5% × 1000 × 1/2
= 22.5
<em>Semi-annual yield</em> = 5.6/2 = 2.8% per six months
<em>Total period to maturity (in months)</em>
= (2 × 19) = 38 periods <em> (Note it was sold a year ago)</em>
<em>PV of interest = </em>
<em> </em>22.5 × (1- (1+0.028)^(-38)/0.028)
= 22.5 ×23.20871226
= 522.196
Step 2
<em>PV of Redemption Value</em>
= 1,000 × (1.056)^(-19)
= 355.128
<em>Price of bond</em>
= 522.19 + 355.12
= $877.32
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Answer:
The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).
Answer:
The correct answer is letter "C": natural gas refinery.
Explanation:
Process cost systems are used by companies which production process go through several steps manufacturing large batches of homogeneous products. Process costing uses a Work-In-Progress (WIP) account for the progress of the production. Typical examples of industries that use the process costings system are<em> petroleum </em>and <em>paint</em>.
