The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is priced to yield 12%, what is the bond's value today

Answer:

Proactive Environmental Response

Explanation:

Given that Proactive Environmental Response is a form of the strategy employed by organizations to tackle many issues relating to production and business process, such as resource productivity, material exchanges, innovative manufacturing process, etc.

Hence when the Cathay Pacific Airlines company addressed the problem described in the question by helping the Government to hire additional inspectors, the purpose is to improve resource productivity in its immediate environment which is an example of "Proactive Environmental Response."

Answer:

Annual depreciation (2nd year)= $16,000

Explanation:

Giving the following information:

Purchase price= $84,000

Salvage value= $20,000

Useful life= 4 years

To calculate the annual depreciation, we need to use the following formula:

Annual depreciation= (Purchase price - salvage value)/estimated life (years)

Annual depreciation= (84,000 - 20,000) / 4

Annual depreciation= $16,000

Answer:

Fortune, Inc.

Budgeted Income Statement for the first quarter

Sales Revenue                    $3,750,000

Cost of goods sold                2,100,000

Gross profit                         $1,650,000

Expenses

Sales commission                   300,000

Rent                                           42,000

Advertising                             562,250

Office salaries                        225,000

Depreciation                           120,000

Interest                                        3,125

Total expenses                 $1,252,375

Income before tax              $397,625

Tax (30%)                                119,288

Net income                         $278,337

Explanation:

a) Data and Calculations:

Selling price per unit = $25

                                       January       February         March          Total

Sales (in units)                 45,000        55,000         50,000       150,000

Sales revenue           $1,125,000 $1,375,000  $1,250,000  $3,750,000

Cost of goods sold       630,000     770,000       700,000     2,100,000

Gross profit                $495,000   $605,000    $550,000  $1,650,000

Expenses:

Sales commission        $90,000    $110,000     $100,000    $300,000

Rent expense                  14,000        14,000         14,000         42,000

Advertising expense    168,750     206,250       187,500      562,250

Office salaries                75,000       75,000        75,000      225,000

Depreciation                  40,000       40,000        40,000       120,000

Interest expense                                                                           3,125

Total expenses                                                                   $1,252,375

Income before tax                                                                $397,625

Tax (30%)                                                                                  119,288

Net income                                                                           $278,337

Answer:

You have been given $5 million to market Kaiser health insurance to new college graduates in California. Briefly mention how you will spend the $5 million in an attempt to motivate new graduates to sign up for Kaiser health insurance. Include a brief rationale for your marketing plan.

State whether the following is inconsistent with an efficient capital market, the CAPM, or both:

Security with only diversifiable risk has an expected return that exceeds the riskfree rate of return

Answer:

This statement is inconsistent with both.

Explanation:

The statement made in the question is inconsistent with both the Capital Asset Pricing Model (CAPM) and an efficient capital market because both models state that the cost of capital depends only on systematic risk or non-diversifiable risk. Thus the statement contradicts the models of the CAPM and Efficient Capital Market.

Answer:

2.35

Explanation:

The computation of the money multiplier for the M1 is shown below:

As we know that

Money supply(M1) = Currency in circulation + Checkable deposits

M1 money supply is = $500 billion + $700 billion

= $1,200 billion  

Now the M1 money multiplier is  

We know that  

Money multiplier = Money supply ÷ Monetary base

where,

Monetary base = Currency in circulation + Bank excess reserves

 = $500 billion + $10 billion

= $510 billion  

We know that,

Money multiplier = Money supply ÷ Monetary base

= $1,200 ÷ $510

= 2.35

Answer:

$101

Explanation:

Calculation to determine the amount in the accounts receivable subsidiary ledger account of customer B.

Using this formula

Customer B accounts receivable amount=Accounts receivable balance- A,C ,D Accounts receivable subsidiary ledger

Let plug in the formula

Customer B accounts receivable amount=$9,083-$1,746-$3,296- $3,940

Customer B accounts receivable amount=$101

Therefore the amount in the accounts receivable subsidiary ledger account of customer B is $101

Answer:

take a clear photo pls

Explanation:

Answer: 20%

Explanation:

The price elasticity of demand shows the increase in quantity demanded as a result of a decrease in price and vice versa.

It is calculated by the formula:

Price elasticity of demand = Change in quantity demanded / Change in price

The formula can therefore be used to find the increase in quantity. Price elasticities are usually denoted in negatives even if not shown so:

-4 = x / -5%

x = -4 * -5%

x = 20%

Answer:

1. $7,100,000

2. $5,694,713

3. 20 years

4. Effective interest method

5. 6%

6. 8%

7. $8,520,000

8. $9,925,287

Explanation:

1. Based on the information given the FACE AMOUNT of the bonds will be the Ending outstanding balance of $7,100,000

Therefore the face amount of the bonds is $7,100,000

2. Based on the information given the INITIAL SELLING PRICE of the bonds will be the beginning Outstanding balance of $5,694,713

Therefore Initial Selling Price of the bonds is $5,694,713

3. Calculation to determine the term to maturity in years

Term to maturity=40 years/2 (Semi annually)

Term to maturity=20 years

Therefore the term to maturity in years is 40 years

4. Interest is determined by EFFECTIVE INTEREST METHOD approach

5. Calculation to determine the stated annual interest rate

Annual interest rate=$213,000/$7,100,000*2

Annual interest rate=6%

Therefore the stated annual interest rate is 6%

6. Calculation to determine effective annual interest rate

Effective Annual interest rate=$227,789/$5,694,713*2

Effective Annual interest rate=8%

Therefore effective annual interest rate is 8%

7. Calculation to determine the total cash interest paid over the term to maturity

Total cash interest paid=$213,000*40

Total cash interest paid=$8,520,000

Therefore the total cash interest paid over the term to maturity is $8,520,000

8. Calculation to determine the total effective interest expense recorded over the term to maturity

Effective interest expense=$8,520,000+($7,100,000-$5,694,713)

Effective interest expense=$8,520,000+$1,405,287

Effective interest expense=$9,925,287

Therefore the total effective interest expense recorded over the term to maturity is $9,925,287

Answer:

i dont know

Explanation:

Answer: $990

Explanation:

Based on the information that we are given in the question, the net income will be calculated as:

= Dividends + Retained earnings

= $1300 + (-$310)

= $1300 - $310

= $990

Therefore, the net income is $990.

Answer:

The should sell short all the common stock and thereby convert the preferred stock for delivery in order to cover the short

Explanation:

Based on the information given in order to To realize the largest profit, a customer that purchased 100 shares at par should sell short all the COMMON STOCK and thereby convert the PREFERRED STOCK for delivery in order to cover the all short of the common stock.

Answer:

is to be identified and investigated

Explanation:

Assignable variation is the distribution of non-random outcomes that could caused due to the individual factor and can be identified

So as per the given situation, it required to be identified and investigated and the same should be removed or eliminated

hence, the above represent the answer

Answer:

see explanation

Explanation:

Hi, your question is incomplete, I tried to look for it online but I could not find it. Here is an explanation on the steps to solve the problem.

Step 1 : Determine the Total Materials Cost

Total Materials Cost

Opening WIP cost                                      $310,000

Costs added during the period                  $40500

Total                                                           $350,500

Step 2 : Total Equivalent units for materials

Equivalent units for materials = Completed units + Equivalent units in ending work in process inventory.

Step 3 : Unit equivalent cost for materials

Unit equivalent cost = Total Cost ÷ Total equivalent units

Step 4 : ending work in process inventory cost

Ending work in process inventory = Unit equivalent cost x equivalent units in ending work in process with respect to materials

Answer:

$10

Explanation:

The computation of the price of the output is given below;

As per the given data

At the time when the average product is maximum, so the average product is equivalent to the marginal product

Therefore, AP = MP= 30

MRP = 300

Now

MRP = MP × MR

300= 30 × MR

MR= 300 ÷ 30

= 10

So,

 P= MR= 10

Answer:

10.94%

Explanation:

Your father was born 48 years ago

His grandfather deposited $250 in an account for him

Today the money is worth $36,500

The annual rate of his return can be calculated as follows

= 36500/250 ×1/48= (1+r/100)

= 146^0.020833= (1+r/100)

= 1.1094-1

= 0.10940×100

= 10.94%

Answer:

Zanadu Co.

Multiple-step Income Statement for the year ended June 30

Sales Revenue                  $534,440

Cost of goods sold               181,440

Gross profit                      $353,000

Rent revenue                          1,500

Administrative expenses    28,750

Selling expenses                65,000

Total operating expenses (93,750)

Operating income          $260,750

Interest expense                  (3,600)

Income before taxes       $257,150

Income taxes (30%)             (77,145)

Net income                      $180,005

Explanation:

a) Data and Calculations:

Administrative expenses $28,750

Cost of goods sold 181,440

Interest expense 3,600

Rent revenue 1,500

Sales 534,440

Selling expenses 65,000

b) A 30% income tax has been assumed for this question.

Answer:

4.8%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

16.35% = r + 1.5(12.5 - r)

16.35% = r + 18.75 - 1.5r

2.4 =0.5r

r = 4.8%

Answer: Less than zero

Explanation:

Based on the information given, the NPV of the project will be calculated as the present value of cash flow earned minus the initial expenditure.

The present value of cash flow will be:

= 3/(1 + 15%)¹ + 3/(1 + 15%)² + 3/(1 + 15%)³

= 3/(1.15)1 + 3/(1.15)² + 3/(1.15)³

= 3/1.15 + 3/1.3225 + 3/1.520875

= 2.61 + 2.27 + 1.98

= $6.86 million

Then NPV will be:

= $6.86 million - $7 million

= -$1.14 million

Therefore, the correct option is "less than zero".

Answer:

Pika Division

Betsy Union

The return on investment will reduce from 21.9% to 18.4%.

Explanation:

a) Data and Calculations:

Current controllable margin = $46,000

Current operating assets = $210,000

Current return on investment = $46,000/$210,000 * 100 = 21.9%

Increase in sales as a result of the new equipment = $10,000

Increase in depreciation = $10,000

Operating assets after the purchase of the new equipment = $250,000 ($210,000 + $40,000)

Future controllable margin = $46,000 ($46,000 + $10,000 - $10,000)

Future return on investment = $46,000/$250,000 * 100

= 18.4%

Answer:

Long-run profits will remain the same.

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

Answer:

Results are below.

Explanation:

First, we need to calculate the break-even point in units and sales dollars:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

Now, the margin of safety and margin of safety rate:

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

Answer:

a. Net present value = $539,013.67

b. Net present value = $273,361.47

Explanation:

a. A new operating system for an existing machine is expected to cost $616,000 and have a useful life of six years. The system yields an incremental after-tax income of $180,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $40,000.

Annual depreciation = (Expected machine cost – Predicted salvage value) / Number of useful life = ($616,000 - $40,000) / 6 = $96,000

Annual cash inflows = Annual incremental after-tax income + annual depreciation = $180,000 + $96,000 = $276,000

Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $276,000 * ((1 - [1 / (1 + 0.12)]^6) / 0.12) = $276,000 * 4.11140732352233 = $1,134,748.42

Present value of predicted salvage value = Predicted salvage value / (1 + required rate of return)^Number of years = $40,000 / (1 + 0.12)^6 =  $20,265.24

Net present value = Present value of the annual cash inflow + Present value of predicted salvage value - Expected machine cost) = $1,134,748.42 + $20,265.24 - $616,000 = $539,013.67

b. A machine costs $440,000, has a $32,000 salvage value, is expected to last eight years, and will generate an after-tax income of $90,000 per year after straight-line depreciation.

Annual depreciation = (Machine cost – Salvage value) / Number of useful life = ($440,000 - $32,000) / 8 = $51,000

Annual cash inflows = Annual incremental after-tax income + annual depreciation = $90,000 + $51,000 = $141,000

Present value of the annual cash inflow = Annual cash inflows * ((1 - [1 / (1 + required rate of return)]^Number of years) / required rate of return) = $141,000 * ((1 - [1 / (1 + 0.12)]^8) / 0.12) = $141,000 * 4.96763976683859 = $700,437.21

Present value of salvage value = Salvage value / (1 + required rate of return)^Number of years = $32,000 / (1 + 0.12)^8 = $12,924.26

Net present value = Present value of the annual cash inflow + Present value of salvage value - Machine cost) = $700,437.21 + $12,924.26 - $440,000 = $273,361.47

Answer:

$148.3 million

Explanation:

Calculation to determine the deferred tax liability that Isaac would report in its year-end 2021 balance sheet

Using this formula

Deferred tax liability=Total future taxable income × Tax rate

Let plug in the formula

Deferred tax liability=(2022 137 million+2023 129 million+2024 162 million+2025 165 million)*25%

Deferred tax liability=$593 million*25%

Deferred tax liability=$148.3 million

Therefore the deferred tax liability that Isaac would report in its year-end 2021 balance sheet is $148.3 million

Answer:

a. the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Explanation:

Pollution can be defined as the physical degradation or contamination of the environment through an emission of harmful, poisonous and toxic chemical substances.

Offset trading refers to a type of trading system that is typically designed for the realization of more efficient pollution control.

This ultimately implies that, an offset trading is a strategic program that allows emerging business firms to pay existing business firms in order to significantly reduce their emissions or pollutants below a specific standard.

Free market in tradable pollution permits simply means giving manufacturing companies and individuals the legal right to pollution of the environment. For example, XYZ company is purchasing the permit of 500 units of carbon dioxide (CO2) pollution annually, this simply means it is permitted to pollute the environment by 500 units of CO2 annually.

Additionally, a free market in tradable pollution permits has some sort of benefits as companies can resell their unused permits or devise a cheaper means of reducing pollution. It also compensate companies that significantly reduces its pollution of the environment.

A pollution tax can be defined as a type of tax imposed on business firms that causes pollution and damages to the environment. It is also referred to as Pigovian tax which is a tax on goods with negative externality.

Hence, tradable permits when compared with pollution tax are likely to result in less inefficiency, when the marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable.

Answer:

The future amount after 5 years is equal to $8,036.04.

Explanation:

This can be calculated using the future value (FV) formula as follows:

FV after 1 year = Invested amount * (100% + Year 1 interest rate)^Number of year = $5,000 * (100% + 9%)^1 =  $5,450.00

FV after 2 years = FV after 1 year * (100% + Year 2 interest rate)^Number of year = $5,450 * (100% + 8%)^1 = $5,886.00

FV after 3 years = FV after 2 years * (100% + Year 3 interest rate)^Number of year = $5,886 * (100% + 12%)^1 = $6,592.32

FV after 4 years = FV after 3 years * (100% + Year 4 interest rate)^Number of year = $6,592.32 * (100% + 6%)^1 = $6,987.86

FV after 5 years = FV after 4 years * (100% + Year 5 interest rate)^Number of year = $6,987.86 * (100% + 15%)^1 = $8,036.04

Therefore, the future amount after 5 years is equal to $8,036.04.

Note: The number of year used in each of the calculation above is 1 because the interest was changing after one year.

Answer: D. a freeze can be placed for up to 15 business days on suspicious disbursements from the account, but not on other non-suspicious disbursements

Explanation:

Under FINRA rules, if a member suspects that a senior citizen is financially exploited, the following can occur:

• a freeze can for up to 15 business days can be placed on the suspicious disbursement.

• Another 10 days can be added in case if the review of a member is supported.

• The disbursements will be from the account, but not on the other non-suspicious disbursements.

Therefore, based on the above, the correct option is D.

Answer:

41-135

Explanation:

Hello, there mate! The answer to this question is 41 - 135. In between these temperatures, bacteria flourishes the most. The ServSafe food guide states that the Danger Zone is 41 - 135 degrees, so you should not cook or store poultry or other foods in these temperatures. When you cook, it should be above 140, and when you freeze, it should be below 41. I hope I helped.

Answer:

Interest rate = 0.9313

Explanation:

Future value or the cost of edcuation after 19 years = $184061

Present value, money in hand at present = $49327

Time period, n = 19

Future value = Present value (1 + r)²

184061 = 49327 (1 + r )²

(1 + r )² = 184061 ÷ 49327

(1 + r )² = 3.73

(1 + r) = √3.73

(1 + r) = 1.9313

r = 1.9313 - 1

r = 0.9313

Or Interest rate = 0.9313