Eastern Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon rate with semi-annual coupon interest payments. The bond's closing price is quoted at 101.25. Suppose you purchase the bond for the closing price. What is the bond's yield to maturity?

Answer:

invoice price (dirty price) = $1,006.435

Explanation:

semi-annual coupon = $1,000 x 5% x 1/2 = $25

clean price = $1,004.375

accrued interest = (Jan. 27 - Jan. 12) x $25 x 1/182 = $2.06

invoice price (dirty price) = clean price + accrued interest = $1,004.375 + $2.06 = $1,006.435

the dirty price or invoice price of a bond includes any accrued interest that the bond may have earned in the period between the last coupon payment and the transaction date.

Answer:

Mullineaux Corporation

WACC (Weighted Average Cost of Capital):

WACC = (11% of 70%) + (5% of 5%) + (7% of 25%) (1 - 35%)

= 0.077 + 0.0025 + 0.0175(65%)

= 0.09087

= 9.1%

Explanation:

Target Capital Structure:

Common stock = 70%

Preferred stock = 5%

Debt = 25%

Total = 100%

Cost of:

Equity = 11%

Preferred stock = 5%

Debt (pretax) = 7%

Tax rate = 35%

Mullineaux's WACC is the weighted average cost of its capital sources, including equity and debt.  It means that Mullineaux Corporation has to weigh each class of capital based on their capital structure weights in order to calculate the average.  This WACC therefore represents the hurdle rate which a project must meet for Mullineaux Corporation to accept or reject the project.

Answer:

        Cost                                                                 Classification

Direct materials                                                       Value added

Direct labor                                                              Value added

Material handling costs                                           Non-value added

Product inspection and rework                              Non-value added

Materials purchasing and inspection                     Value added

Routine maintenance and equipment                    Non-value added

servicing

Repair of equipment                                                Non-value added

Answer:

true

Explanation:

Answer:

16.3%

Explanation:

$40 was put at the beginning of the year for an investment

The investment grows by 5%

= 5/100

= 0.05

The dividend is $4.50

The first step is to calculate the dividend yield

= $4.50/40

= 0.1125

Therefore, the HPR can be calculated as follows

= 0.1125+0.05

= 0.163×100

= 16.3%

Hence the HPR was 16.3%

Answer:

$18,191,268.19

Explanation:

the company's WACC = (weight of equity x Re) + (weight of debt x after tax cost of debt) = (0.6 x 11.5%) + (0.4 x 4.3%) = 6.9% + 1.72% = 8.62%

discount rate adjustment factor = 8.62% + 3% = 11.62%

to determine the value of the project:

$1,750,000 / (11.62% - 2%) = $1,750,000 / 9.62% = $18,191,268.19

If the initial outlay is $18,191,268.19, then the project's NPV = $0. This is the maximum amount that the firm should be willing to invest in this project.

Answer:

I. The funding gap in the health care sector

II. Universal health care coverage

III. Access to medical care

Explanation:

The Singaporean health care savings account system has really helped to solve the problems associated with health care funding in the country, it has also helped the country to attain a universal health care for its citizens as it was rated in 2014 by Bloomberg as the country with the most efficient health care system in the world. The system has helped to address the issues of non-catastrophic health outcomes and helped to increase the life expectancy of its citizens.

Answer:

True

Explanation:

They are trying to win over customers by comparing each others features in a competition

Competitive advertising is demonstrated by the Sprint vs. Verizon adverts, which compare the functionality and pricing of the two networks. So, it is a true statement.

Competitive advertising is the act of showcasing or promoting one's product in comparison to the product of another company.

This form of marketing can be used to target customers who are devoted to the other brand, prompting them to reassess their purchasing patterns.

The three types of competitive advertising are:

For more information about competitive advertising, refer below

https://brainly.com/question/3463451

Answer:

concentrated marketing

Answer:

Discount-Mart

The carrying value of the bonds as of December 31, 2022 is:

$16,490,908

Explanation:

a) Data and Calculations:

Bonds issued = $18 million

Date of issue = Jan. 1, 2021

Bond term = 8 years

Interest payable on June 30 and December 31 each year.

b) Partial bond amortization schedule for the bonds:

Date             Cash Paid     Interest Expense     Increase in    Carrying Value

                                                                     Carrying Value

01/01/2021                                                                              $ 16,180,939

06/30/2021 $ 900,000     $ 970,856          $ 70,856            16,251,795

12/31/2021      900,000         975,108               75,108           16,326,903

06/30/2022   900,000         979,614               79,614            16,406,517

12/31/2022     900,000         984,391               84,391           16,490,908

b) The carrying value of the bond is the net amount between the par value of $18 million and the unamortized premium or discount.  It is this value that is reported on the balance sheet.

Answer: 1}ToTAL Activity cost =$23,000

2a)  Sales order Processing Activity per unit sale=$6.00

2b)customer return activity per unit sale=$3.20

Explanation:

a. total sales order processing and customer return activity cost for swing sets

Sales order Processing Activity =Number of orders x rate per sales order

                                       =750 x 20 =  $15,000

customer return activity  = Number of returns x rate per return

                                         = 80 x 100= $8,000

ToTAL Activity cost = Sales order Processing Activity +customer return activity= $15,000 + $8000 = $23,000

b)per-unit sales order processing and customer return activity cost for swing sets

Cost of Sale order processing = $15,000

Number of swing set sold = 2,500

Therefore Sales order Processing Activity per unit sale =  Cost of Sale order processing/ Number of swing set sold = $15,000/ 2,500= $6.00

customer return activity cost  = $8,000

Number of swing set sold = 2,500

Therefore customer return activity per unit sale=  customer return activity cost / Number of swing set sold = $8,000/ 2,500= $3.20

ToTAL Activity cost  per unit sale = Sales order Processing Activity  cost per unit +customer return activity cost per unit = $6.00 +  $3.20 = $9.20

Answer:

Correct Answer:

B.)surplus of euros.

Explanation:

United States of America as one of the most industrialized country with factories and firms producing goods and services engages in trade with other countries. Should their goods and services be demanded by European countries, it would create surplus of Euros due to the fact that, all the goods would be paid for by the common currency used by the European countries which is Euros.

Answer:

B. A will choose Pink and B will choose Pink

Explanation:

Answer: it is b because of

Explanation:

Answer:

12.95%

Explanation:

The risk free rate of return is 3.2%

The market risk premium is 4.6%

The beta is 2.12

Therefore, the expected rate of return on a stock can be calculated as follows

= 3.2% + (2.12×4.6%)

= 3.2% + 9.752

= 12.95%

Hence the expected rate of return on a stock is 12.95%

Answer: Parent's rate is lower.

Explanation:

The lower rate will be the lower Effective Annual rate, the formula of which is;

[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1[/tex]

Credit Card

[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1[/tex]

[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1\\= ( 1 + \frac{0.17}{12})^{12} - 1\\= 0.184[/tex]

= 18.4%

From your parents

[tex]EAR = (1 + interest rate/compounding frequency) ^{compounding frequency} - 1\\= ( 1 + 0.07) ^{2} - 1\\= 0.1449[/tex]

= 14.5%

Parent's rate is lower.

Answer:

365.15 units

Explanation:

The computation of the economic order quantity is shown below:

[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]

where,

Annual demand is

= 30 units × 300 days

= 90,000 units

ordering cost is $50

Carrying cost is

= $45 × 15%

= $6.75

Now placing these values to the above formula

So, the economic order quantity is

[tex]= \sqrt{\frac{2\times \text{90,000}\times \text{\$50}}{\text{\$6.75}}}[/tex]

= 365.15 units

We simply applied the above formula so that the EOQ could come

Answer:

The activity variance for supplies cost in March would be closest to $24 (Unfavorable)

Explanation:

The activity variance for supplies cost in March is calculated below

Activity variance = Planning Budget - Flexible Budget

= ($1,700 + ($8 * 610)) - ($1,700 + ($8 * 613))

= ($1,700 + $4,880) - ($1,700 + $4,904)

= $6,580 - $6,604

= $24U

The flexible budget is greater than the planning budget. Therefore, the variance is unfavorable (U)

Answer:

$100,000

Explanation:

Data provided

Perpetual cash flow = $10,000

Discount rate = 10%

According to the given situation, the computation of Present value of this inginite sequence of cash flow is shown below:-

Present value = Perpetual cash flow ÷ discount rate

= $10,000 ÷ 10%

= $10,000 ÷ 0.1

= $100,000

Therefore for computing the present value we simply applied the above formula.

Answer:

Cullumber Company

Journal Entry:

Debit Loss on Goodwill Impairment $34,200

Credit Goodwill $34,200

To record the loss on goodwill impairment.

Explanation:

a) Data and Calculation:

Fair value = $820,800

Carrying value of net identifiable assets, including goodwill = $855,000

Goodwill impairment = $34,200 ($855,000 - $820,800)

b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly.  The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom.  Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment.  By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.

Answer with Explanation:

There are numerous stock valuing models but here, I will use Dividend Valuation Model which is based on finding the intrinsic value of Stock which is the present value of the stock at a required rate of return. The formula to calculate Intrinsic value of stock is given as under:

P0= D0   *  (1 + g) / (ke - g)

Here

P0 is the intrinsic value of the stock

D0 is the dividend just paid

g is the growth rate

ke is the investor's required rate of return

The model doesn't holds if the company doesn't pays Dividend.

Now suppose that the Dividend just paid by Apple is $20 per stock. The anticipated growth rate of dividend is 10% and the required rate of return is at 15%.

By putting values in the above equation, we have:

P0= $20 * (1 + 10%) / (15% - 10%)

= $20 / (15% - 10%)

= $400 per share

The value of stock of Apple is $400 per share which must be its fair market value as per the Dividend Valuation Model.

As per the model, if the value of stock is higher as per dividend valuation model then we must purchase the stock as it will generate higher value and vice versa. The inherent limitation of the model is that it assumes that the dividend is growing at constant rate and is consistently paid. The main disadvantage of Dividend valuation model is that it doesn't account for political factors, economical factors, evolving business risks, technological factors, etc.

Answer:

since the positive cash flows are blocked for one year, you have to adjust your cash flows:

year                 cash flow

0                      -$160,000

1                        $0

2                       $348,400

3                       $416,000

4                       $306,800

5                       $260,000

discount rate = 7%

using a financial calculator:

NPV = -$160,000 + $1,063,318.63 = $903,318.63

IRR  = 102.94%

Answer:

The amount of her bet only

Explanation:

A wager is a gamble on a particular outcome of a situation. In this case the outcome of a football match.

However wagering in such a manner is a violation of state staute. So this is an illegal activity.

Jock and Kyla deposit funds for the wager with Len. Before the bet of Kyla changes her mind she can recover the money she deposited.

Len will not be able to withhold he deposit because she can sue and claim this is an illegal activity that she does not want to be part of. Len will be forced.to return at least her own money.

Answer:

The average rate of return of this investment is 8%.

Note: Based on the information provided in the question, the average rate of return of this investment is 8% but it is not included in the option. Kindly confirm this from your teacher.

Explanation:

Note: The data in the question are merged and they therefore first sorted before answering the question as follows:

Year         Income from Operations             Net Cash Flow

  1                          $100,000                               $180,000

  2                             40,000                                 120,000

  3                             40,000                                 100,000

  4                              10,000                                  90,000

  5                              10,000                                 120,000

The explanations to the answer is now given as follows:

Calculation of the average rate of return for this investment

Average rate of return (ARR) is a financial ratio that is used to determine the rate of return that is expected from an asset over its lifetime. ARR is calculated as the total income from the assets divided by the initial investment on the assets.

The average rate of return for this investment can be calculated as follows:

Total income form operations over five years = $100,000 + $40,000 + $40,000 $ $10,000 + $10,000 = $200,000

Average income = Total income form operations over five years / Number of years = $200,000 / 5 = $40,000

Average rate of return for this investment = Average income / Cost of Machine = $40,000 / $490,000 = 0.08, or 8%

Therefore, the average rate of return is 8%.

Answer:

Closing statement

Explanation:

Hope it helped

Answer:

10.60%

Explanation:

The compound annual growth rate formula stated below can be used to determine the annual rate of return on the stock investment.

CAGR=(future value/present value)^(1/n)-1

future value is the future worth of the stock after three years i.e100*$23=$2300

Present value is the initial cost of the stock which is 100*$17=$1700

n is the number of years the stocks have been owned

CAGR=($2300/$1700)^(1/3)-1=10.60%

Answer:

Giada's Book Store

The company would have reported a total profit of $19,000, which is $10,000 less.

Explanation:

a) Data and Calculations:

Income statement for the most current​ year:

                                               Cookbook  Travel Book    Classics   Total

Sales                                        $68,000  $126,000  $53,000  $247,000

Cost of goods sold                    40,000     66,000     21,000     127,000

Contribution margin                  28,000     60,000    32,000     120,000

Order and delivery processing 21,000     24,000      11,000       56,000

Rent​ (per sq. foot​ used)              2,000       5,000      4,000         11,000

Allocated corporate costs          8,000        8,000      8,000       24,000 Corporate profit                     ​$​ (3,000​)  $23,000    $9,000     $29,000

Corporate profit =                     $29,000

less allocated cookbook costs   10,000

Adjusted corporate profit =      $19,000

b) Discontinuing the Cookbook product line would have eliminated the contribution the product line makes to defraying Rent and Allocated Corporate costs totalling $10,000 unless the Rental space was a variable cost.

Answer:

Ritz Carlton is luxury hotel chain of America. The company has 101 luxury hotel in more than 30 countries of the world. The success of Ritz Carlton is mainly because they keep the comfort of their guests as their highest priority. Their mission statement clearly states that comfort and genuine care of their guests is utmost important to them.

Explanation:

Their business model focuses entirely on their customers. Ritz Carlton has created its leading brand by providing great ambiance to the visitors and its guest. One can dream of staying at such luxury hotel. They are famous for their hospitality of their guests. The hotel management believes on total quality management. It has set highest standard for themselves and strive to meet them by providing better and better service to its guests.

Complete Question:

What is the expected annual capital gain yield for Orange Corp stock, based on the Constant Dividend Growth Model? The company plans to pay an annual dividend of of $4.12 per share in one year. The expected annual growth rate of the dividend is 12.9%, and the required rate of return for the stock is 16.63%. Answer as a percentage, 2 decimal places (e.g., 12.34% as 12.34).

Answer:

12.9%

Explanation:

As we know that:

Capital Gain Yield  = (P1 - P0) / P0

Step 1: Find P0

Po = D1  / (Ke - g)

Here

D1 is $4.12 per share

Ke is 16.63%

g is 12.9%

By putting values, we have:

Po = $4.12 / (16.63% - 12.9%)

= $110.46

Step 2: Find P1

P1 = D2  / (Ke - g)

Here

D2 = D1 * (1 + 12.9%) = $4.12 per share  * (1 + 12.9%) = $4.65

Ke is 16.63%

g is 12.9%

By putting values, we have:

Po = $4.65 / (16.63% - 12.9%)

= $124.70

Step3: Find Annual Capital Gain Yield

Capital Gain Yield  = (P1 - P0) / P0

Now by putting values, we have:

Capital Gain Yield  = ($124.7 - $110.46) / $110.46

= 12.9%

Answer:

Par amount = $9,615.39

Explanation:

The condition that must hold in order to meet full immunization are as follows:

Condition 1: PV(assets) = PV(liabilities)

Condition 2: MD(assets) = MD(liabilities) or P'assets = P'liabilities

Condition 3: There is one asset cash inflow before the liability cash outflow, and there is also one asset cash inflow after the liability cash outflow.

Where PV denotes Present Value and MD denotes Macaulay Duration.

PV(liabilities) = Amount required to pay / (1 + i)^n ............ (1)

Where;

Amount required to pay = $20,000

i = interest rate = 4%

n = number of years after = 3 years

Substituting the values into equation (1), we have:

PV(liabilities) = $20,000 / (1 + 4%)^3 = 17,779.93

Let;

A = Weight of two-year-zero-coupon bond in the portfolio

n = Macaulay Duration of n-year-zero-coupon bond

Therefore, we can construct a portfolio of assets using a 2-year zero-coupon bond and a 4-year zero-coupon bond as follows:

A(2) + (1 – A)(4) = 3

2A + 4 – 4A = 3

2A – 4A = 3 – 4

-2A = - 1

A = -1/-2

A = 0.5

We can now calculate the par amount as follows:

Par amount = PV(liabilities) * A * (1 + i)^t .............. (2)

Where t = 2 as the duration of the bond

Substituting the values into equation (2), we have:

Par amount = 17,779.93 * 0.5 * (1 + 4%)^2

Par amount = 17,779.93 * 0.5 * 1.04^2

Par amount = 17,779.93 * 0.5 * 1.0816

Par amount = $9,615.39

Therefore, the par amount for the 2-year zero-coupon bond assuming full immunization is met is $9,615.39.