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3 years ago

What does it mean when the fed raises interest rates

1 answer:

7 0

What Happens When the Fed Raises Rates?

——> When the Fed raises the federal funds target rate, the goal is to increase the cost of credit throughout the economy.

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Competing on cost is A. based upon flexibility. B. concerned with reliability of scheduling. C. concerned with uniqueness. D. ac

makvit [3.9K]

Answer: D

Explanation:

Competing on cost is based on achieving maximum value as perceived by the customer.

8 0

3 years ago

Lindsey Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A

saul85 [17]

Answer:The activity-based costing cost per unit of Product A=$9.21

Explanation:

Product A Product B

Units Produced 8000 units 6000 units

Activity Cost Pool Total Cost Product A Product B Total Activity

Activity 1 $26,400 170 380 550

Activity 2 $54,365 950 360 1,310

Activity 3 $136,880 900 3,820 4,720

Activity−basedcost for Poduct A

Activity−basedcost for Activity1= total Cost/total no. of activityx activity for particular product which is product A

=26,400/550 x 170= 8160

Activity−basedcost for Activity2= total Cost/total no. of activityx activity for particular product which is product A

=54,365/1310 x 950=39,425

Activity−basedcost for Activity3= total Cost/total no. of activityx activity for particular product which is product A

=136,880/4720 x 900=26100

Total activity based cost for Product A = $8,160 + $39,425 +$26,100=$73,685

The activity-based costing cost per unit of Product A = Total activity based cost for Product A/ Units Produced for product A=$73,685/8000=$9.21

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3 years ago

Consider the following events:25,000 shares of preferred stock, cumulative, 5%, $10 par was issued for $15 a share.The annual ca

Mars2501 [29]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

Download xlsx

5 0

3 years ago

McConnell Corporation has bonds on the market with 16.5 years to maturity, a YTM of 6.3 percent, a par value of $1,000, and a cu

muminat

Answer:

6.52%

Explanation:

Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.

As per Given Data

Face value = F = $1,000

Selling price = P = $1,036

Number of periods = n = 16.5 years x 2 = 33 periods

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

As we have the YTM, We need to calculate the Coupon Payment using YTM formula.

6.3% = [ C + ( $1,000 - 1,036 ) / 33 ] / [ ( $1,000 + 1,036 ) / 2 ]

6.3% = [ C - $1.09 ] / $1,018

C - $1.09 = $1,018 x 6.3%

C - $1.09 = $64.134

C = $64.134 + 1.09 = $65.224

Coupon Rate = 65.224 / $1,000 = 0.065224 = 6.5224%

3 0

3 years ago

Carpenters, Inc., a manufacturing company, acquired equipment on January 1, 2017 for $ 520 comma 000. Estimated useful life o

san4es73 [151]

Answer:

Annual depreciation= $47,618

Explanation:

Giving the following information:

Purchasing price= $520,000

Useful life= 7 years

Residual value= $20,000

New useful life= 9 years

First, we need to determine the annual depreciation and accumulated depreciation before January 2020.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (520,000 - 20,000)/7= 71,429

Accumulate depreciation= 71,429*3= $214,287

New annual depreciation:

Book value= 520,000 - 214,287= 305,713

Annual depreciation= (305,713 - 20,000) / 6

Annual depreciation= $47,618

5 0

4 years ago