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uysha [10]
3 years ago
6

Moon lite cafe has a semiannual, 5 percent coupon bond with a current market price of $988.52. the bond has a par value of $1,00

0 and a yield to maturity of 5.68%. how many years is it until this bond matures?
Business
1 answer:
Ivenika [448]3 years ago
5 0
Mostly 18 years is it until the bond matures.Given; Semiannually, 5 percent coupon bond, market price = $988.52Solution; $988.52 = [(.05 / 2) × $1,000] × [(1 - {1 / [1 + (.0568 / 2)]t × 2}) / (.0568 / 2)] + $1,000 / [1 + (.0568 / 2)]t × 2; t = 3.6 semi-annual periods, or 1.8 years
The answer in this question is 18 years.
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Which of the following is not considered a legitimate expense of a partnership? a Interest paid to partners based on the amount
never [62]

Answer:

a Interest paid to partners based on the amount of invested capital.

Explanation:

A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.

Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.

Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.

8 0
3 years ago
Suppose you've just inherited $10,000 from a relative. you're trying to decide whether to put the $10,000 in a non-interest-bear
NeTakaya
Since the purpose is put the money aside that anytime you can get it and spend it on anything you want to buy, the best answer from the choices is  "HOLD IT AS A MONEY". 

You can choice U.S treasury fund because only after 10 years you can get the money with fixed interest.
6 0
3 years ago
The Simon Company (SIMON) currently has $300,000 market value (and book value) of perpetual debt outstanding carrying a coupon r
Reptile [31]

Answer:

The answer is "4,750"

Explanation:

They have indeed been given the information that we require.

The current market cap for Simon Company (SIMON) is $300,000.

rate= 6%

EBIT=$150,000

The business has no plans to expand.

The current cost of capital is 8.8%,

The tax rate is 40%.

The company has 10,000 shares of common stock mostly on market.

The stock is being offered at a $90.00 per share price.

Assume SIMON is considering switching in its current financial performance to one that results in a share price of $96 per share.

The resultant capital structure would have a combined valuation of $504,000 in capital and $756,000 in equity.

Remaining Shares= equity market value /  per share price

n =\frac{S}{P}  \\\\= \frac{\$504,000}{ \$96}\\\\= \$5,250

The initial number of shares minus the resultant number of shares equals the number of repurchased shares:

AJC will buy back a certain number of shares.

= 10,000 - 5,250\\\\= 4,750\\

8 0
2 years ago
What is a hypothesis?
yanalaym [24]

The answer is B.

"A hypothesis (plural hypotheses) is a proposed explanation for a phenomenon. For a hypothesis to be a scientific hypothesis, the scientific method requires that one can test it. Scientists generally base scientific hypotheses on previous observations that cannot satisfactorily be explained with the available scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously, a scientific hypothesis is not the same as a scientific theory. A working hypothesis is a provisionally accepted hypothesis proposed for further research, in a process beginning with an educated guess or thought."

"A hypothesis is an assumption, an idea that is proposed for the sake of argument so that it can be tested to see if it might be true."

7 0
3 years ago
If a department that applies process costing starts the reporting period with 40,000 physical units that were 80% complete with
andriy [413]

Answer:

True

Explanation:

<em>Equivalent units are notional whole units which represent incomplete work and are used to apportion cost between work progress and completed work. These units are determined as follows: </em>

Equivalent units = Degree of work done(%) × units of inventory

Equivalent units

<em>Direct material:</em>

Balance of work = 100-80 = 20%

Equivalent of work to be added = 20% × 40,000 = 8,000

<em>Labour</em>

Balance of work = 100-50= 50%

Equivalent of work to be added =50% × 40,000 = 20,000 units

                                    <em>Equivalent of work to be added(units)</em>

Material                               8000                                  

Labour                               20,000

8 0
2 years ago
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