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Arlecino [84]
3 years ago
5

Kimble Electronics issued its 6%, 20-year bonds payable at a price of $855,000 (face value is $900,000). The company uses the st

raight-line amortization method for the bond discount or premium. Interest expense for the first year is:
Business
1 answer:
il63 [147K]3 years ago
6 0

Interest expense for the first year is: $56,250

Solution:

Kimble Electronics issued = 6%, 20-year bonds payable

The corporation follows the straight-line amortization approach for the discount or premium on debt.

$900,000 - $855,000= $45,000

$45,000/20 years= $2,250 per year

$900,000 * 0.06 = $54,000

$2,250 + $54,000 = $56,250 interest expense.

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A coffee shop owner blends a gourmet brand of coffee with a cheaper brand. The gourmet coffee usually sells for ​$9.00 per pound
AleksandrR [38]

Answer:

15lbs of gourmet coffee and 5lbs of cheap coffee.

Explanation:

To solve this problem, we will use the substitution method. Step by step explanation:

1. Defining the variables:

  • G: For gourmet coffee
  • C: For cheap coffee

2. Setting up the equations:

We need to find a combination of G and C that will result in 20 pounds worth $8.50 per lbs. As such, we have:

  1. G + C = 20lbs
  2. $9.00G + $7.00C = $8.50/lbs x 20lbs

3. Solving equation 1 for any of the variables. We will go with variable G:

  • G = 20 - C

4. Substituting variable G in equation 2 to find C:

  • 9(20 - C) + 7C = 8.5 * 20\\180 - 9C + 7C = 170\\180 - 170 = 9C - 7C\\10 = 2C\\\frac{10}{2}=C\\C = 5

5. Substituting variable C in equation 1 to find the value of G:

  • G + 5 = 20\\G = 20 - 5\\G = 15

Then, we need <em>15lbs</em> of gourmet coffee and <em>5lbs</em> of cheap coffee to have <em>20lbs</em> of coffee worth <em>$8.50/lbs.</em>

3 0
3 years ago
In the short run, with predetermined prices, when output is greater than planned aggregate expenditures:
katen-ka-za [31]

Answer:

The decrease in production, is the right answer.

Explanation:

The decrease in production because if the output is more than planned aggregate expenditure then the equilibrium point will be at a lower point. Thus, in order to reach the equilibrium level, the production has to decrease. Moreover, if the output is lower than the planned aggregate expenditure then the production should be increased to reach the equilibrium point.

5 0
3 years ago
Which type of control is associated with making sure an organization's control environment is stable?
miss Akunina [59]
General controls are associated with making sure an organization's control environment is stable. General controls monitor the environment, infrastructure, power supply, heating and cooling, fire extinguishers, clean environment and much more. These are all standards set for which a company should be kept for their employees.   
6 0
3 years ago
Which of the following terms involves the analysis of markets to identify opportunities and challenges?
vodka [1.7K]

Answer:

Which of the following terms involves the analysis of markets to identify opportunities and challenges?

marketing research

Explanation:

marketing research has to do with market feasibility, it gives an overview of what is expected from such market which might be lower or higher. It gives room for planning, execution, management, identification of challenges that could pose treat to the business.

7 0
3 years ago
ou are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays no
kompoz [17]

Answer:

$14.73

Explanation:

Given that, there is a 50 - 50 chance that a call option will either increase or decrease ;

Exercise price = $109

Increase price = $142

Decrease price = $76

Using the two state stock price model :

Increase price - exercise price ; 142 - 109 = $33

Decrease price - exercise price ; 76 - 109 - $33

We calculate the mean, expected value of winning after one year,

E(X) = Σx*p(x)

Since call won't be exercised if price decrease, then - 33 = 0

x : ___ 33 _____ 0

p(x) : _ 0.5 ____ 0.5

E(X) = (33*0.5) + (0*0.5)

E(X) = 16.5

The present value, PV = Expected winning / (1 + r)

PV = 16.5 / (1 + 0.12) = 16.5 / 1.12 = 14.73

8 0
3 years ago
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