EXCEL The FAMA Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1000 face value at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1-year. What will be the value of each of these bonds when the going rate of interest (yield to maturity) is:
A) 8%
B) 12%
Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1-year)?

Answers

Answer 1

Answer:

A)

8%

Bond L = $1,171.19

Bond S = $1,018.52

12%

Bond L = $863.78

Bond S = $982.14

Explanation:

Price can be calculate by using PV function in excel as follow

=PV(rate, nper, pmt, [fv])

Where

Rate = yield to maturity

nper = numbers of years to maturity

pmt = coupon payment

fv = maturity value

The prices are calculated using the PV function and working is attached with this answer

A Formula sheet is also attached for your reference.

EXCEL The FAMA Company Has Two Bond Issues Outstanding. Both Bonds Pay $100 Annual Interest Plus $1000
EXCEL The FAMA Company Has Two Bond Issues Outstanding. Both Bonds Pay $100 Annual Interest Plus $1000

Related Questions

A small machine shop manufactures drill bits used in the petroleum industry. The manager estimates that the total daily cost (in dollars) of producing X bits is the cost function

C(X) = 1600 + 0.23X2
where X is the number of bits produced and $1600 is the daily fixed cost and $0.23X is the variable cost per unit. The manager has set a production goal to produce the number of bits per day which will keep the average cost per bit as low as possible.

Find the minimum average cost per unit.

Answers

Answer:

.46 there you go

Explanation:

đường tổng cung dài hạn là đường có độ đố dương hay âm

Answers

Answer:

dương

Explanation:

Select the correct answer
What is a federal budget
A
an evaluation of the government's current revenue sures
an estimate of the government's total revenue and spending
a calentation of the amount needed to make the government debt free
a comparison of the government's foreign and domestie earnings
Resol
Next

Answers

B) an estimate of the government's total revenue and spending

What is the value of a preferred stock that pays a perpetual dividend of $125 at the end of each year when the interest rate is 5 percent?

Answers

Answer: $2500

Explanation:

The value of a preferred stock that pays a perpetual dividend of $125 at the end of each year when the interest rate is 5 percent will be calculated by using the formula:

= Cf/i

where,

Cf = Cash flow = $125

i = Interest rate = 5% = 0.05

Therefore, the value of the preferred stock will be:

= Cf/i

= $125/0.05

= $2500

The value of the preferred stock is $2500.

You have $34,977.24 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal

Answers

Answer:

13.82 years

Explanation:

The computation of the number of years taken for reaching the goal is as follows:

Given that

PV is $34,977.24

PMT is $4,000

FV is $240,000

RATE is 14%

The formula is shown below:

=NPER(RATE,PMT,PV,-FV,TYPE)

AFter applying the above formula, the number of years is 13.82 years

how can strategic leaders be successful in an industry like the airlines industry

Answers

Answer:

Strategic leaders can help any airline related issue to be solved

Explanation:

Strategic leaders are needed everywhere. An airline company would indeed benefit from a strategic leader and or manager

Some members of Congress have proposed a law that would make price stability the sole goal of monetary policy. Suppose such a law were passed. (a) How would the Fed respond to an event that expanded aggregate demand

Answers

Answer:

If aggregate demand expands, unless aggregate supply expands in an equal proportion, then the price level will increase. In order to keep prices stable, the FED would need to increase interest rates or decrease the money supply in order to offset the expansion of the aggregate demand. This way, aggregate demand should return to its original level.

Explanation:

A firm has a debt-equity ratio of .64, a cost of equity of 13.04 percent, and a cost of debt of 8 percent. Assume the corporate tax rate is 25 percent. What would be the cost of equity if the firm were all-equity financed

Answers

Answer:

11.41%

Explanation:

The cost of equity of an all-equity firm can be derived from the below formula:

Levered Cost of Equity = Unlevered Cost of Equity + (Unlevered Cost of Equity - Cost of Debt) * (1 - tax) * Debt-Equity Ratio

Levered Cost of Equity=13.04%

Unlevered Cost of Equity=the unknown(let us assume it is U)

cost of debt=8%

tax rate=25%

debt-equity ratio=0.64

13.04%=U+(U-8%)*(1-25%)*0.64

13.04%=U+(U-8%)*0.75*0.64

13.04%=U+(U-8%)*0.48

0.1304=U+0.48U-0.0384

0.1304+0.0384=1.48U

1.48U=0.1688

U=0.1688/1.48

U=11.41%

What personal traits are important for finance and business careers?

Answers

Answer:

You must be positive

Emotional intelligence

A growth mindset

Adaptability and resiliency

Answer:

if you want to take up a business for your future career these are your personal traits you must have when you are creating a business;

Be positiveWork FastBe KindBe OrganizedKeep your Business Surroundings Clean and tidyGet rid of Pests and insects in your Business Area and SurroundingHand everything with CareAlways Help your Customer

C Co. reported a retained earnings balance of $230,000 at December 31, 2020. In September 2021, C determined that insurance premiums of $81,000 for the three-year period beginning January 1, 2020, had been paid and fully expensed in 2020. C has a 25% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings

Answers

Answer:

$267,800

Explanation:

Calculation to determine What amount should C report as adjusted beginning retained earnings in its 2021 statement of retained earnings

First step is to Allocate the premium equally starting from 2020,2021 to 2022

Premium=$81,000/3 years

Premium=$27,000

Second step is to calculate the effect of the error

Effect of error=$81,000-$27,000

Effect of error=$54,000

Third step is to calculate the tax effect

Tax effect =$54,000*30%

Tax effect=$16,200

Fourth step is to calculate the 2021 beginning retained earnings

2021 Beginning retained earnings=$54,000-$16,200

2021 Beginning retained earnings=$37,800 Understated

Now let determine the Corrected retained earnings

Using this formula

Corrected retained earnings =Beginning balance + Understated Beginning retained earnings

Let plug in the formula

Corrected retained earnings= $230,000 + $37,800

Corrected retained earnings= $267,800

Therefore the amount that C should report as adjusted beginning retained earnings in its 2021 statement of retained earnings will be $267,800

In 2011, Starbucks terminated a contract with Kraft Foods that allowed Kraft to sell bagged Starbucks coffee in grocery stores. The early termination resulted in litigation between Kraft and Starbucks. After an arbitrator found in Kraft's favor, Starbucks recorded a liability for $2.8 billion.

Required:
This behavior is typical of many companies today. What is your opinion on the reasons companies behave this way? Is it realistic? Why or why not?

Answers

Answer:

Starbucks and Kraft Foods

The reasons companies terminate contracts before their expiration include impossibility of performance, material breaches of contract terms, misrepresentation, fraud, lack of capacity, mutual mistake, and frustration.

The reason for Starbucks' termination of the contract was "multiple material breaches."  These were not established by the arbitrator, who  delivered judgment in Kraft's favor.

It is not always realistic to terminate a long-standing contract without abiding by the contract termination terms because the damages and accruing interests that can be awarded against the terminating company may be too huge.

Explanation:

The "multiple material breaches" that Starbucks alleged against Kraft included the allegation that "Kraft did not always meet minimum advertising budgets or keep Starbucks involved in major initiatives."  According to Starbucks, these violations eroded its "brand equity."

Number of Output Marginal Product Office Rent Labor Cost TotalCost
Workers boxes of Labor (dollars) (dollars)
0 0 --
1 220 400 200
2 250 800
3 680
4 160 1,200
5 940 1,000
6 980 1,600
Suzette's Fancy Packaging subcontracts with Sunshineland Pecans to box dried fruit and nuts for Suzette's mail order business. Suzette rents space for her factory for $400 a week in a nearby strip mall. She can hire temporary workers for $200 a week. Table 11-5 above shows her output and cost data. Use the table to answer questions a-e.
a. Complete the table.
b. In the last week of summer Suzette closes her business to go on a family vacation. What are her costs during that week?
c. In one week Suzette exactly breaks even. If her revenue for the week is $1,200, how many boxes of fruit and nuts did she produce?
d. Judging from the marginal product of labor data, would you say that Suzette had to settle for increasingly unproductive workers? Explain your answer.
e. Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal product of labor will continue in the same direction, what do you think she should do? Should she not commit until she can move to a larger space or should she just hire more workers? Explain your answer.

Answers

Answer:

a.

Number of    Output  Marginal Product Office Rent  Labor Cost Total Cost

Workers         boxes           of Labor          (dollars)       (dollars)       (dollars)

0                       0                      -                                                               -

1                      220                 220              400              200               600

2                     470                 250              400              400               800

3                    680                  210               400              600            1,000

4                    840                  160               400              800            1,200

5                   940                  100               400            1,000            1,400

6                   980                   40               400             1,200           1,600

b. The costs during the week of summer vacation are: $400

c. She produced 840 boxes.

d. Yes.  Suzette settled for increasingly unproductive workers as the marginal product of labor continued to decline.  The cost of paying the workers remained at a flat rate of $200 per week without the corresponding output to show for the labor cost.

e. Suzette will need to hire more workers.  However, their average productivity needs to be improved greatly to limit the total labor costs.

Explanation:

a) Data and Calculations:

Number of   Output   Marginal Product  Office Rent  Labor Cost Total Cost

Workers        boxes            of Labor          (dollars)       (dollars)       (dollars)

0                       0                      -                                                               -

1                      220                 220              400              200               600

2                     470                 250              400              400               800

3                    680                  210               400              600            1,000

4                    840                  160               400              800            1,200

5                   940                  100               400            1,000            1,400

6                   980                   40               400             1,200           1,600

The following cash transactions occurred during the period.
Interest received in cash $18,000
Payment of wages to employees $35,000
Purchase of a piece of equipment for cash $120,000
Distribution of cash dividend declared last year $25,000
Fill in the statement of cash flows following US GAAP. Use the direct method for calculating cash flow from Operating Activities.

Answers

Answer:

-$17,000

Explanation:

The computation of the cash flow from Operating Activities is shown below;

= Interest received in cash  - Payment of wages to employees

= $18,000 - $35,000

= -$17,000

Hence, the cash used from operating activities is -$17,000

So the same is considered and relevant

An economist wants to study the effect of income on savings. He collected data on 120 identical twins. Which of the following methods of estimation is the most suitable method, if income is correlated with the unobserved family effect, i.e.a) random effects estimationb) nonlinear least squared estimationc) least Squares Dummy Variable (LSDV) approachd) ordinary least squares estimation

Answers

Answer:

The correct option is c) least Squares Dummy Variable (LSDV).

Explanation:

Dummy variables can be used in dynamic panel data models to explain the effect of each individual unit of a cross section that is unobserved but accurately characterizes the model of relation. The individual effect is assumed to be fixed across time in each individual in the least squares dummy variable (LSDV) estimation. If the unobserved effect and the explanatory variables are correlated, the assumption of fixed effects gives more exact estimators than the assumption of random effects.

Therefore, the most suitable method, if income is correlated with the unobserved family effect is least Squares Dummy Variable (LSDV).

This implies that the correct option is c) least Squares Dummy Variable (LSDV).

Leo is the most active participant on his company's social networking platform, but his manager has an issue with one aspect of his posts. Which behavior is Leo's manager most likely to ask him to change

Answers

Group of answer choices.

A. He never addresses colleagues by name to keep things professional.

B. He always uses a friendly, but direct tone.

C. He often requests that colleagues post work-related data.

D. He spends time on the platform each day.

E. He often reminds colleagues to share their ideas through the platform

Answer:

A. He never addresses colleagues by name to keep things professional.

Explanation:

Operant conditioning can be defined as an associative learning process which involves reinforcing the strength of a behavior.

Behavior modification is a therapeutic process that is focused on changing any undesirable negative behavior in an individual through the use of positive or negative consequence and biofeedback.

Basically, behavior modification is based on operant conditioning principles, through negative or positive reinforcement, undesirable behaviors developed by an individual are mainly replaced with more desirable ones.

In this scenario, a behavior which Leo's manager is most likely to ask him to change is not addressing colleagues by name to keep things professional.

In a corporate or formal setting such as on a company's social network platform, it is very important that group members (employees) address their colleagues by name at all times. This behavior or action, is necessary to keep things professional and show individual interests in your colleagues.

Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. Your firm proposes to borrow $800 and its leveraged firm value is $1,600. What is your cost of capital under the proposed leveraging?
A. 12.06%
B. 10.03%
C. 11.05%
D. 11.33%

Answers

Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

You have recently seen a credit card advertisement that states that the annual percentage rate is 10.2 percent. Of the credit card requires monthly payments, what is the effective annual rate of interest on the loan

Answers

Answer:

The answer is "[tex]=10.7\%[/tex]".

Explanation:

Using formula:

[tex]EAR=[(1+\frac{APR}{m})^m-1[/tex]

Where m=compounding period

[tex]\to EAR=[(1+\frac{0.102}{12})^{12}]-1[/tex]

             [tex]=[(1+0.0085)^{12}]-1\\\\=[(1.0085)^{12}]-1\\\\=1.107-1\\\\=0.107[/tex]

             [tex]=10.7\%[/tex]

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes.): Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

Answers

Answer:

$4,355.26

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 =  $-10,000

Cash flow in year 1 - 5 = $2,000

Cash flow in year 6 = $2,000 + 10,000 = 12,000

I = 10%

NPV = $4,355.26

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

Suppose autos cost consumers $30,000 and trucks cost consumers $15,000. What contribution does the production of 200 autos and 200 trucks make to the GDP

Answers

Answer:

the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

Explanation:

The computation of the contribution made to the production of 200 autos and 200 trucks is shown below

Contribution to GDP is

= $30,000 × 200 + $15,000 × 200

= $6,000,000 + $3,000,000

= $9,000,000

Hence, the  contribution made to the production of 200 autos and 200 trucks is $9,000,000

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Answers

Answer: Please don’t advertise here

Answer:

dont advertise

Explanation:

what is the most important value adding service criteria?

Answers

Answer:

functional value, monetary value, social value, and psychological value

Which of the following instruments are traded in the capital markets? Check all that apply. Treasury bills Certificates of deposit Common stocks Commercial paper Preferred stocks

Answers

Answer:

Common stocks

Preferred stocks

Explanation:

The Capital Market is a place where bonds and stocks are traded however it is only for stocks and bonds with a maturity that lasts over a year. Corporate bonds and government bonds fall under this category as a result.

Stocks represent ownership in a company so this is a long term ownership thing which is why it is traded in the capital market. This includes both common and preferred stock.

A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm sells the product for $200 per unit. What is the break-even point for this operation

Answers

Answer and Explanation:

The computation of the break-even point for this operation is given below:

As we know that

Break even point is

= (Fixed cost) ÷ (Selling price per unit - variable cost per unit)

= ($9,000) ÷ ($200 - $50)

= $9,000 ÷ $150

= 60 units

The break even price is

= Fixed cost ÷ expected cost + variable cost per unit

= $9,000 ÷ $200 + $50

= $45 + $50

= $95

A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?
A. Control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.
B. Control is generally the same in almost all organizations.
C. Control will clearly increase as subordinates need less supervision.
D. Control will decrease as new employees join the company.

Answers

Answer:

b

Explanation:

The phrase Control will decrease as the manager climbs to higher levels in the organization and work becomes less standardized best describes a manager's need to exert tight controls on subordinates (span of control).

Thus, option A is correct.

What is the ideal span of control?

For all businesses, assessing the scope of control is a useful health check. Organizations can easily identify potential areas for improvement or issue areas by visualizing spans and layers. The number of employees directly under management is referred to as the span of control. The number of subordinates that a supervisor or manager in an organization can effectively and efficiently supervise is referred to as the span of control.

A manager with five direct reports, for instance, has a span of control of five. As long as it is considered in the context of the company's organizational structure, having too many or too few direct reports is a useful indicator of how effective an organization is.

For more information about the span of control refer to the link:

https://brainly.com/question/13678908

#SPJ2

How does the mode of corroborating (e.g. strategic alliance, joint venture, licensing, outsourcing, collective research organization) influence the success of a collaboration?

Answers

Answer:

Organizations are always looking for new strategies to leverage their profits and market positioning. Corroboration arises then as a strategy in which two or more companies unite temporarily or not, through strategic alliance, licensing, joint venture, outsourcing, etc., with the common objective of expanding their market share and profits.

The way to corroborate influences the success of a collaboration because the chosen strategy is aligned with the organizational values ​​and objectives. When two companies join a strategic alliance, for example, they share their resources, knowledge, technologies, market value and others, to achieve different joint benefits, such as competitive advantage, consumer attraction, greater positioning, increased market share, etc.

MHhow is shortage of power supply affect the economy of South Africa ​

Answers

Answer:

The economic losses due to power interruptions are estimated to cost between one and five% of the GDP of countries across Sub-Saharan Africa. South Africa's GDP was forecast to grow less than one per cent last year, with the problems at Eskom being one of the main contributing factors.

Explanation:

Answer the following questions using the information below: Cannady produces six products. Under their traditional cost system using one cost driver, SR6 costs $168.00 per unit. An analysis of the activities and their costs revealed that three cost drivers would be used under the new ABC system. The new cost of SR6 was determined to be $178.00 per unit. Given this change in the cost ________.

Answers

Answer:

Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

Explanation:

A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.

Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.

3. The meaning of saving and investment Classify each of the following based on the macroeconomic definitions of saving and investment. Saving Investment Yvette borrows money to build a new lab for her engineering firm. Sean purchases a corporate bond issued by a car company. Cho purchases stock in NanoSpeck, a biotech firm. Bob purchases a new condominium in Chicago.

Answers

Answer and Explanation:

The classification is as follows:

1. As the money is to be borrowed to built a new lab, so it is an Investment.

2. As the corporate bond is issued by a car so it should be the savings

3. The stock is purchased so it should be the saving

4. The purchase of the new condominium should be considered as an investment

In this way it should be classified

What is LinkedIn lead generation?

Answers

Answer:

Lead generation is a central focus for any B2B organization that’s interested in driving consistent and reliable revenue.

Lead generation encompasses all activities relating to the identification and cultivation of potential customers. Companies use a variety of sales and marketing tactics to generate leads (as we’ll cover shortly), but one way or the other, it is essential to have well defined processes in place.

Why LinkedIn is good for Lead Generation?  

Best LinkedIn Lead Generation Strategies:  

Create an Attractive LinkedIn Profile for Engagement Use Engaging Content Engage and Build Relationships

Why hasn't globalization benefited the majority of the world's underdeveloped countries?
A. underdeveloped countries don't have the natural resources needed to fuel high levels of industrial production
B. underdeveloped countries use protectionist policies to isolate themselves from international trade
C. underdeveloped countries rely on exporting agricultural goods to developed countries
D. underdeveloped countries don't have the productive capacities necessary to take advantage of increasing national trade

Answers

I think it’s A or B not sure tho

The answer is D. Under developed countries don’t have the productive capacities necessary to take advantage of increasing national trade

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