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Greeley [361]
3 years ago
9

The Hot Dog Shack wants to raise $1.2 million by selling some coupon bonds at par. Comparable bonds in the market have a 6.5 per

cent annual coupon, 15 years to maturity, and are selling at 97.687 percent of par. What coupon rate should The Hot Dog Shack set on its bonds?

Business
1 answer:
Bad White [126]3 years ago
7 0

Answer:

6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

This is correct Present value = $976.87

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 6.5% = $65

NPER = 15 years

The formula is shown below:  

= Rate(NPER,PMT,-PV,FV,type)  

The present value come in negative  

So, after solving this,  the answer would be 6.75%

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Services differ from manufacturing for all of the following reasons EXCEPT: a. Heterogeneity b. Time-perishable capacity c. Simu
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Answer:C. Simultaneous production and consumption.

Explanation:

Production and consumption occuring at the same time will not make products to differ.

Heterogenity which refers to different qualities in firms will lead to different products. Time perishable capacity which means idle time during low patronage will still allowed products differences, Abilities to limit the discretionary input of personnel will not debar product differences and Customer provides significant input into the process will allowed products differences.

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3 years ago
March 1, 2017, Alpha Company's beginning work in process inventory had 8,000 units. This is its only production department. Begi
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Answer:see attached file

Explanation:

4 0
3 years ago
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The marginal utility from the first three bananas consumed are: 19, 15, and 5 respectively. The marginal utility from the first
MaRussiya [10]

Answer:A pair of sandals.

Explanation:Its so obvious stating that the marginal utility derived from sandals is higher compared to the other two items. You maximize your utility by going for the item with highest satisfaction which is glaringly sandals.

You also maximize your utility by considering the item which is economica prudent to one needs or want.

6 0
3 years ago
The straight-line depreciation method and the double-declining-balance depreciation method: Multiple Choice Are acceptable for t
fiasKO [112]

Answer:

The straight-line depreciation method and the double-declining-balance depreciation method:

Produce the same total depreciation over an asset's useful life.

Explanation:

The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP).  The other two methods are sum of the years' digit and units of production.  The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount.  For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate.  Depreciation expense is then calculated on the declining balance until the salvage value is left.  This is why they produce the same depreciation over the asset's useful life.

3 0
3 years ago
an amount of 16000 is borrowed for 8 years at 3% interest, compounded annually. if the loan is paid in full at the end of that p
bezimeni [28]

He must pay back 20268.32 of amount after borrowing 16000 for 8 years at the interest rate of  3% for one year.

<h3>How to calculate loan amount ?</h3>
  • The term "Loan Amount" refers to the sum of money we currently owe you for this mortgage. The loan amount may also include other fees, interest , defaulted payments, interest on defaulted payments, principal, and interest on unpaid principal.
  • The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount.

Amount he borrowed = 16000

No. of years = 8 years

Rate of interest = 3%

Calculate full amount (A) :

Equation for A = P(1 + r/n)^(nt)

A =  16000(1 + .03)^8

A = 20268.32

He need to pay 20268.32 after 8 years.

To learn more about Loan amount refer :

brainly.com/question/26011426

#SPJ4

4 0
1 year ago
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