BUSINESS COLLEGE

Parkway Void Co. issued 14-year bonds two years ago at a coupon rate of 10.2 percent. The bonds make semiannual payments. If these bonds currently sell for 96 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer 1
Answer:

Answer:

10.80%

Explanation:

For this question ,we use the RATE formula that is shown in the spreadsheet attachment. Kindly find it below:

Given that,  

Present value = 1,000 × 96% = $960

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

PMT = 1,000 × 10.2% ÷ 2 = $51

NPER = (14 years - 2 years) × 2 = 24 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 10.80%

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James owns a home in lake tahoe, nevada, that he rented for $4,600 for 40 days during the summer. he lived there for a total of 120 days, and the rest of the year the house was vacant. the expenses for the home included $6,000 in mortgage interest, $900 in property taxes, $1,300 in maintenance and utilities, and $2,500 in depreciation. what is his net income or loss from the rental of his home (without considering the passive loss limitation)? use the irs method for allocation of expenses. $0. $1,925 net income. $4,600 net income. $6,100 net loss.
Flying High Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring and finishing. When the frisbees and associated costs are transferred out of the coloring process and into the finishing process, the journal entry would include a:A. debit to Finished Goods Inventory and a credit to WIP Inventory - Coloring. B. debit to WIP Inventory - Coloring and a credit to Finished Goods Inventory.C. debit to WIP Inventory - Finishing and a credit to WIP Inventory - Coloring.D. debit to WIP Inventory - Coloring and a credit to WIP Inventory - Finishing.
Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,500 units) $ 180,000 Variable expenses 81,000 Contribution margin 99,000 Fixed expenses 45,000 Net operating income $ 54,000 If the company sells 4,600 units, its total contribution margin should be closest to: (Do not round intermediate calculations.)
Brodrick Company expects to produce 21,000 units for the year ending December 31. A flexible budget for 21,000 units of production reflects sales of $504,000; variable costs of $63,000; and fixed costs of $141,000. Assume that actual sales for the year are $595,600 (26,900 units), actual variable costs for the year are $114,000, and actual fixed costs for the year are $133,000. Prepare a flexible budget performance report for the year.
Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.Service Revenue$80,000Cleaning Supplies Used22,000Wages Expense19,350Office Rent Expense5,150Depreciation Expense—Machinery550Calculate the contribution margin and the contribution margin ratio. (Round your contribution margin to the nearest dollar, and your contribution margin ratio to two decimal places.)A) $38,650; 48.31% B) $74,850; 93.56%C) $60,650; 75.81% D) $32,950; 41.19%

Evaluating strategies LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.

Answers

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the requirements. But, I will provide the formulas.

1) Contribution margin:

CM= selling price - unitary variable cost

2) contribution margin ratio:

contribution margin ratio= contribution margin / selling price

3) break-even point in units

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

4) break-even point in sales dollars:

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

Cori's Corp. has an equity value of $13,505. Long-term debt is $8,800. Net working capital, other than cash, is $3,620. Fixed assets are $17,980 and current liabilities are $1,870.How much cash does the company have?
Cash ________________$
What is the value of the current assets?
Current assets ______________$

Answers

Answer:

Cash $705

Current Assets $6,195

Explanation:

Equity $13,505

Long-term debt $8,800

Net working capital, other than cash, $3,620.

Fixed assets are $17,980

Current liabilities are $1,870.

Net Working capital is the Net value of Current and Current Liabilities.

We need to calculate current assets with cash first.

As we know

Assets = Equity + Liability

Fixed Assets + Current Assets = Equity + Long Term Liability + Current Liability

$17,980 + Current Assets = $13,505 + $8,800 + $1,870

Current Assets = $24,175 - $17,980 = $6,195

Net Working Capital  = Current Assets - Current Liabilities

$3,620 = Current Assets - $1,870

Current Assetsother than cash = $3,620 + $1,870

Current Assets other than cash = $5,490

Cash Value = Total Current Assets - Current Assets other than cash = $6,195 - $5,490 = $705

Final answer:

Cori's Corp has $705 in cash and $4,325 in current assets. This is calculated using the formula: Cash = Equity value + Long-term debt - Fixed assets - Net working capital (excluding cash), and then adding the calculated cash to the net working capital to get the current assets.

Explanation:

To calculate the cash of the company, you need to use the following formula: Cash = Equity value + Long-term debt - Fixed assets - Net working capital (excluding cash).

So the cash Cori's Corp. has would be: Cash = $13,505 + $8,800 - $17,980 - $3,620 = $705.

Next, the total current assets would be the sum of the Net Working Capital and cash. In this case, current assets = Net working capital + Cash = $3,620 + $705 = $4,325.

Hence, Cori's Corp has $705 in cash and $4,325 in current assets.

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Carter Containers sold marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $21 million, $25 million, and $12 million, respectively. What amount should Carter report as net cash from investing activities?

Answers

Answer:

The $8 million is the amount which should Carter report as net cash from investing activities.  

Explanation:

Cash flow from investing activities : It includes all types of transactions whether it is a sale or purchase of fixed assets and intangible assets.

So, the net cash flow amount from investing activities is equals to

= Sale of marketable securities + Sale of land - Purchase of equipment - purchase of patent

= $30 million + $15 million - $25 million - $12 million

= $8 million

The sale of common stock and purchase of treasury stock is a part of financing activities. Hence, it is not considered in the computation part.

Thus, the $8 million is the amount which should Carter report as net cash from investing activities.  

Final answer:

Carter Containers' cash inflows from selling marketable securities, land, and common stock total $85 million. The cash outflows from buying treasury stock, equipment, and a patent total $58 million. Therefore, the net cash from investing activities is $27 million.

Explanation:

To figure out the net cash from investing activities for Carter Containers, we begin by looking at the inflows of cash. These are generated by the sales of marketable securities, land, and common stock for $30 million, $15 million, and $40 million, respectively.

We then take into consideration the outflows, which are the result of purchasing treasury stocks, equipment, and a patent, costing $21 million, $25 million, and $12 million respectively.

Summing up all the cash inflows gives us a total of $85 million. The total outflows, which are the company's expenses, amount to $58 million. To determine the net cash from investing activities, we subtract the total cash outflows from the total inflows.

Therefore, Carter's net cash from investing activities is $27 million ($85 million - $58 million).

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Ribb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $190 100% Variable Expenses 57 30% Contribution Margin $133 70% Fixed expenses are $913,000 per month. The company is currently selling 9,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

Answers

Answer:

Decrease in operating income     $3,200  

Explanation:

The computation is shown below:

Particulars  Old method  New method

Sales                 $1,710,000       $1,786,000

                      (9,000 units × $190)    (9,400 units × $190)

Less:

Variable expenses  $513,000           $592,200

                       (9,000 units × $57)    (9,400 units × $63)

Contribution margin $1,197,000       $1,193,800

Less:

Fixed expenses   ($913,000)         ($913,000)

operating income   $284,000          $280,800

Decrease in income     $3,200  

We simply take an difference of operating income under both methods that reflects the decrease in operating income

The top salary you can make.A) Career
B) Productivity
C) Earning potential
D) Human capital

Answers

Answer:

earning potential

Explanation:

Earning potential refers to the potential gains from dividend payments and capital appreciation shareholders might earn from holding a stock. In other words, it reflects the largest possible profit that a corporation can make

Final answer:

The top salary one can make is tied to their earning potential, which is influenced by their human capital, including education and skills. Human capital boosts productivity, leading to higher earnings. Investments in human capital can hence increase the long-term earning potential of individuals.

Explanation:

The top salary one can make is often referred to as their earning potential, which is linked to several factors including education, human capital, productivity, and the career path one chooses. Human capital represents the accumulation of knowledge, skills, and experience that a worker possesses, which directly influences their productivity and, consequently, their earning potential. Investing in education and skills development can increase one's human capital, thereby raising their productivity and the ability to earn a higher salary. This can shift a family's budget constraint, allowing them to improve their standard of living, as shown by an increase in hourly wage from $7.25 to $12 in one hypothetical scenario.

An investment in human capital, similar to other forms of investment, includes an upfront cost but can lead to greater benefits in terms of increased productivity and earnings over time. The role of education in enhancing human capital is significant, impacting not only the career one can pursue but also the performance and income one can expect from their labor. Employers value the performance that comes with enhanced human capital, thereby providing more significant benefits and higher wages in line with the increased productivity.

Layla Company began making mascara in November 2018 using a single-step process. Layla incurred $42,000 for materials and $48,640 for conversion during the month. There were 21,000 cases of mascara started in November and 3,000 cases unfinished (40 percent complete) at the end of the period. All materials were added at the beginning of the production process. What is the unit cost for materials for Layla using the FIFO method?

Answers

Answer:

The unit cost for materials for Layla using the FIFO method is $2.

Explanation:

                                                            Physical unit % EUP-material

Units started and completed              18000      100%     18000

Ending work in process                       3000       100%      3000

Total                                                       21000       21000

Unit cost = 42000/21000

               = $2 per unit

Therefore, The unit cost for materials for Layla using the FIFO method is $2.
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