Answer:
Customer ID HANAR
Customer Name Hanari Carnes
Order ID 10981
Total Amount 15810.00
Explanation:
Companies focus on Customer retention policies for high valued customers. The companies do not want to upset their high valued clients and lose a great part of their sales from these customers. In this question all the high valued customers are sent gifts by the company who has shop for $10,000 or more from the company this year. From the given list we have sorted the high valued customers based on this criteria.
Dextra Computing sells merchandise for $17,000 cash on September 30 (cost of merchandise is $11,900). The sales tax law requires Dextra to collect 3% sales tax on every dollar of merchandise sold. Record the entry for the $17,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 3% tax on this sale to the state government on October 15.
Record the cash sales and 3% sales tax.
record the cost of sept. 30th sales.
record the entry that shows the remittance of the 3% tax on this sale to the state government on october 15.
please show the calculations as well.
Answer:
Explanation:
From the given information;
The Journal entries for Dextra Computing Merchandise can be computed as follows:
Date Account title Debit ($) Credit ($)
Sept 30 Sales Revenue 17000
Sept 30 Sales Tax Payable
(3% × 17000)= 0.03× 17000 510
Sept 30 Cash 17510
(To record the cash sales of merchandise)
Sept 30 Cost of goods sold 11900
Sept 30 Merchandise Inventory 11900
(To record the transfer of cost of merchandise
to cost of goods sold)
Oct 15 Sale Tax Payable
(3% × 17000)= 0.03× 17000 510
Cash 510
(To record the remittance of 3%
sales tax to the state government)
There is a direct relationship between the par value and market value of common stock: stocks with a low par value have a low market value, while stocks with a high par value have a high market value.
a. True
b. False
Answer:
The statement is false.
Explanation:
As the market value of the stock depends upon the industry risk, political, economical, technological, etc factors and also largely depends upon the business performance which is the profits generated by the organization and its cashflow health. So higher par value has nothing to do with higher market value. Hence the statement is totally incorrect.
You would like to have extra spending money, so you decide to work part time at the local gym. The job pays you $15 per hour and you work 20 hours per week. Your employer withholds 10% of your gross pay for federal taxes, 7.65% for FICA taxes and 3% for state taxes.
a. What is your weekly gross pay?
b. How much is withheld per week for federal tax?
c. How much is withheld per week for FICA taxes?
d. How much is withheld per week for state taxes?
e. What is your weekly net pay?
f. What percentage of your gross net pay is withheld for taxes?
Answer:
Gross Pay 300 dollar
Federal Income Tax $ 30
FICA $ 22.95
SUTA $ 9
Net Pay: 238.05
As a percentage of gross pay: 79.35%
Explanation:
Gross pay:
20 hours x $15 each = $ 300
Taxes:
income tax: 300 x 10% = 30
FICA 300 x 7.65% = 22.95
SUTA taxes 300 x 3% = 9
Net pay 300 - 30 - 22.95 - 9 = 238.05
Net pay as a percentage of gross pay:
238.05 / 300 = 0.7935 = 79.35%
Use the following information for Shafer Company to compute inventory turnover for year 2.
Year 2 Year 1
Net sales $656,000 $584,600
Cost of goods sold 390,200 361,010
Ending inventory 79,400 81,080
Answer:
Inventory turnover for year 2 is 4.91 times.
Explanation:
Inventory turnover measures liquidity of company`s inventory
Inventory turnover = Cost of goods sold / Ending inventory
= $390,200 / $79,400
= 4.91 times
A put option gives its owners the right, but not the obligation, to: buy a commodity at a specified price and future date, at which time physical delivery occurs. sell a commodity at a specified price and future date, but physical delivery does not occur. sell a specified number of shares at a certain price within a specified period of time. buy a specified number of shares at a certain price within a specified period of time.
Answer:
sell a specified number of shares at a certain price within a specified period of time.
Explanation:
A put option is a contract in which there is a right given to an owner but its not an obligation for selling a particular number of shares at a specific price within a time period set. Here specific price we called as predetermined price where the option put the buyer to sell at the strike price
Hence, the third option is correct
According to the Uniform Prudent Investors Act , it is NOT a breach of fiduciary duty if investment advisers do not inquire into a client's A) investment objectives B) specific financial needs C) Social Security or tax ID number D) financial situation
Answer: C) Social Security or tax ID number
Explanation:
The Uniform Prudent Investors Act lists guidelines to be followed by investment advisers and trustees when they invest assets. The guiding principle of this Act is the Prudent Man Rule which is that when investing, the investor should invest like a Prudent person would invest their assets.
As such, an investor should be sure to find out some details about the client to enable them better recommend an investment trajectory. Details such as their specific financial needs, their investment objectives and their financial situation will enable the advisers better know what investment strategies and vehicles to use and therefore not inquiring about them would be a breach of fiduciary duty.
Knowing about a client's Social Security or tax ID number will not help the adviser chart an investment course better so does not need to be known.
Allocate the following expense items of the U.S. government into the mandatory, discretionary, and interest categories of the government budget. a. $1,000 of income for the Human Fund for owning a $100,000 savings bond b. Food stamps received by the Jones family c. Purchase of F-16 fighter planes by the U.S. government d. An increase in the salary of researchers at the National Institutes of Health e. Government aid to help victims of drought in east Africa
Answer:
a. $1,000 of income for the Human Fund for owning a $100,000 savings bond - This is an example of the debt interest in the budget.
b. Food stamps received by the Jones family - These are mandatory that has to be spent by the government.
c. Purchase of F-16 fighter planes by the U.S. government - Purchasing F-16 is discretionary.
d. An increase in the salary of researchers at the National Institutes of Health - Increase in the salary is discretionary expenditure by the government.
e. Government aid to help victims of drought in east Africa - This will be discretionary.
Definition of the categories of US government budget
Mandatory spending is spending required by statutory criteria, it is not authorized annually
Discretionary spending is spending that must be authorized annually and appropriated by the House and Senate.
Interest on debt is the cost incurred by an entity for borrowed funds
Iris, a calendar year cash basis taxpayer, owns and operates several TV rental outlets in Florida and wants to expand to other states. During 2019, she spends $14,000 to investigate TV rental stores in South Carolina and $9,000 to investigate TV rental stores in Georgia. She acquires the South Carolina operations but not the outlets in Georgia. As to these expenses, Iris should: a.Expense $9,000 for 2019 and capitalize $14,000. b.Expense $23,000 for 2019. c.Capitalize $23,000. d.Capitalize $14,000 and not deduct $9,000. e.None of these choices are correct.
Answer:
b.Expense $23,000 for 2019.
Explanation:
The computation is shown below:
= Spend in the investigation for the TV rental stores in South Carolina + Spend in the investigation for the TV rental stores in Georgia
= $14,000 + $9,000
= $23,000
Hence, the amount of expense $23.000 would be considered
Therefore the option b is correct
A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)
Answer:
The bond equivalent yield to maturity = 8.52%
The effective annual yield to maturity of the bond = 8.71%
Explanation:
Here, we start with calculating the yield to maturity YTM using the financial calculator
To find the YTM, we need to put the following values in the financial calculator:
N = 20*2 = 40;
PV = -950;
PMT = [8%/2]*1000 = 40;
FV = 1000;
Press CPT, then I/Y, which gives us 4.26
So, Periodic Rate = 4.26%
Bond equivalent yield = Periodic Rate * No. of compounding periods in a year
= 4.26% * 2 = 8.52%
effective annual yield rate = [1 + Periodic Rate]^(No. of compounding periods in a year) - 1
= [1 + 0.0426]^2 - 1 = 1.0871 - 1 = 0.0871, or 8.71%
"If the top two companies in the golf club industry merged, their new market share would equal 15% of the market. This industry's new HHI would be 995. According to the FTC's historical guidelines for mergers, would the FTC approve this merger
Answer:
Yes, the FTC would ignore the merger and allow it to go through.
Explanation:
here are the options to the question ;
O No, the FTC would probably challenge the merger
O Maybe. The FTC would scrutinize the merger and make a case-by-case decislon.
Yes, the FTC would ignore the merger and allow it to go through.
HHI is used to calculate market power.
if the HHI index is less than 1000 post merger, the merger would be allowed to go through.
If the HHI index is between 1000 - 1800 post merger and the change in HHI is more than 100 after the merger, The FTC would scrutinize the merger and make a case-by-case decislon.
If the HHI index is more than 1800 post merger and the change in HHI is more than or equal to 50, he FTC would probably challenge the merger
While walking along a beach, Daniel notices that several girls are wearing large, round plastic sunglasses and the boys are wearing metal sunglasses. Which concept most likely accounts for the similar fashion within a gender and the different fashions between genders? A. Consumerism B. Competition C. Individual behavior D. Peer pressure
Answer:
the correct answer should be A.
Grace manufactures and sells miniature digital cameras for exist330 each. 2,000 units were sold in May, and management forecasts 4% growth in unit sales each month.
Determine the number of units of camera sales for the month of June.
Number of camera sales ______________ units
Determine the dollar amount of camera sales for the month of June.
Amount of camera sales ____________
Answer:
2,080 units
$686,400
Explanation:
The computation of the number of camera sales in units is shown below:-
Number of camera sales in units = Sold units + (Sold units × Percentage of growth in units sales)
= 2,000 + (2,000 × 4%)
= 2,000 + 80
= 2,080 units
The computation of the amount of camera sales is shown below:-
Amount of camera sales = Number of units × Selling price per unit
= 2,080 × $330
= $686,400
Ford has a rigid hierarchical pecking order that discourages sharing ideas and well-established leadership-training practices. Which cause of organizational resistance to change does this illustrate
Answer:
culture
Explanation:
Organisational resistance to change occurs when employees fail to understand how they fit into way things are done in an organisation.
For example when there is need to change the job role of an employee from operations to sales. There may be a resistance to taking on the responsibilities of the new role.
Organisational resistance can also be in regards to a company that does not want to adjust to changing business climate.
In this scenario the rigid hierarchical pecking order that discourages sharing ideas and well-established leadership-training practices makes Ford resistant to needed change.
This is a cultural resistance because it is the accepted way of doing things in the company
The Great Depression was the worst economic disaster in U.S. history in terms of declines in real GDP and increases in the unemployment rate. Use the data in the following table to calculate the percentage decline in real GDP between 1929 and 1933.
Year Nominal GDP Billions of Dollars GDP Price Deflator (yr 2000 = 100)
1929 103.6 11.9
1933 56.4 8.9
Real GDP changed by _____% over the 4 year period between 1929 and 1933. Enter a percentage value rounded to one decimal place. Include a minus sign if necessary.
Answer: -27.2%
Explanation:
The Real GDP can be calculated using the formula for calculating the Price Deflator which is the current price level for the year.
Price Deflator = (Nominal GDP / Real GDP) * 100
Real GDP = (Nominal GDP/ Price Deflator ) * 100
1929
= (103.6/11.9 )* 100
= $870.588
1933
= (56.4/8.9) * 100
= $633.70787
Percentage Change
= (870.588 - 633.70787) / 870.588
= 0.272
= -27.2%
GDP changed by -27.2% over the 4 year period between 1929 and 1933
Answer:
the answer is b on edge 2020
Explanation:
Suppose your organization used function point analysis to estimate costs for software projects. How would the expertise level of a recently hired programmer affect your calculation of their function points on a monthly basis when compared to an older, more experienced programmer
Answer:
Please see explanations below
Explanation:
Cost estimation refers to the process of forecasting costs including other resources to manage, make decisions and to plan and set standards. It is also the approximation of product, project and service costs from available details in several documents and statements. Preparing precise and accurate cost estimation is important for a firm because such would be relied upon by customers hence could result to variant allocation of resources and misinterpretation to them and functional manager who control resources; where wrong cost estimations are made.
Function point analysis clears the facts that software function comes with different challenges which is dependent on the available resources. For a newly hired programmer, he could spend additional time while rating more of the functions assigned to him. Such could be rated as higher complexity hence create extra hour and also add to cost estimates because complexity estimates is a determinant of different programme features hence the more experienced and professional a programmer is, the lower the total cost of the whole programme process.
Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments.
a. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?
b. Suppose that 2 years after the initial offering, the going interest rate had risen to 12%. At what price would the bonds sell?
c. Suppose that 2 years after the issue date (as in part a) interest rates fell to 6%. Suppose further that the interest rate remained at 6% for the next 8 years. What would happen to the price of the bonds over time?
Answer:
A) Market Value: $1,251.2220
B) Market Value: $898.94
C) the price of the bonds will decrease over time. As the nominal amount will suffer from less discounting over time at maturity will match the nominal amount of $ 1,000. To do so It need to decrease over time.
Explanation:
The value of the bonds will be the present value of the future coupon payment and maturity at the new rate of 6%
PV of the coupon payment
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 50.000 (1,000 x 10% / 2 ayment per year)
time 16 (8 year to maturity x 2 payment per year)
rate 0.03 (6% over two payment per year)
[tex]50 \times \frac{1-(1+0.03)^{-16} }{0.03} = PV\\[/tex]
PV $628.0551
PV of the maturity
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 16.00
rate 0.03
[tex]\frac{1000}{(1 + 0.03)^{16} } = PV[/tex]
PV 623.17
PV c $628.0551
PV m $623.1669
Total $1,251.2220
If the rate is 12%
PV of the coupon payment:
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 50.000
time 16
rate 0.06
[tex]50 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\[/tex]
PV $505.2948
PV of the maturity:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 1,000.00
time 16.00
rate 0.06
[tex]\frac{1000}{(1 + 0.06)^{16} } = PV[/tex]
PV 393.65
PV c $505.2948
PV m $393.6463
Total $898.9410
Compute the percentage of the firm that is financed by debt provided that the firms assets of $5 million are financed by $3 million in Equity and the rest by long term debt.
Answer:
The percentage of the firm that is financed by debt is:
40%
= $2 ($5 - $3) million/$5 million
= 40%
Explanation:
The long-term debt financing is the difference between the total assets of the firm and the value of the firm's equity. The debts/assets ratio is the financial leverage that the firm employs in running the business. The implication is that creditors can lay claim to 40% of the assets of the firm since the assets are financed 40% from debts. The remaining 60% is financed by Stockholders' Equity.
She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand. What is Rachel's breakeven price?
Answer:
selling price= $5
Explanation:
Giving the following information:
She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand.
To calculate the break-even selling price, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
2,500= 7,500 / (selling price - 2)
2,500selling price - 5,000= 7,500
selling price= 12,500/2,500
selling price= $5
Joe must pay liabilities of 1,000 due one year from now and another 2,000 due three years from now. There are two available investments: Bond I: A one-year zero-coupon bond that matures for 1,000. The yield rate is 6% per year Bond II: A two-year zero-coupon bond with face amount of 1,000. The yield rate is 7% per year. At the present time the one-year forward rate for an investment made two years from now is 6.5%. Joe plans to buy amounts of each bond. He plans to reinvest the proceeds from Bond II in a one-year zero-coupon bond. Assuming the reinvestment earns the forward rate, calculate the total purchase price of Bond I and Bond II where the amounts are selected to exactly match the liabilities.
1. 2,584
2. 2,697
3. 2,801
4. 2,907
5. 3,000
Answer:
1. 2,584
Explanation:
future payments: $1,000 in 1 year and $2,000 in 3 years
the present value of alternative I (one year bond):
$1,000 / 1.06 = $943.40
the present value of alternative II (first 2 years and then 1 year):
$2,000 / 1.065 = $1,877.93 ⇒ PV at year 2
PV at year 0 = $1,877.93 / 1.07² = $1,640.26
the total present value of both options = $943.40 + $1,640.26 = $2,583.66 ≈ $2,584
Liabilities are settled over time through the transfer of economic benefits including money, goods, and services.
LiabilitiesLiability are some things someone or company owes, that's usually a sum of cash.
Now we calculate the whole price of Bond I and also Bond II.
The longer term payments is : $1,000 in 1 year and $2,000 in 3 years.
The present value of different I (one year bond): $[tex]1,000 / 1.06[/tex] = $[tex]943.40[/tex]
The present value of other II (first 2 years then 1 year): $[tex]2,000 / 1.065[/tex] = $[tex]1,877.93[/tex]⇒ PV at year 2PV at year 0 = $1,877.93 / 1.07² = $1,640.26
The total present value of both options = $943.40 + $1,640.26 = $[tex]2,583.66 ≈[/tex]$2,584
Thus, the correction option is (1.) 2,584.
Find out more information about Liabilities here:
brainly.com/question/17271329
Suppose you are Coca-Cola and you are competing with Pepsi-Cola. Both of you would make more money if you advertised less - but you find yourself in a repeated prisoner's dilemma where you both are deciding to advertise. How would you prefer to deal with your competitor
Available Options Are:
A. Be nice and don't advertise first.
B. If your competitor advertises do not escalate the situation, but do match their move
C. Wait to respond to your competitors actions.
D. Make sure your actions are clear to your competitor.
E. All of the above except 'c'.
Answer:
Option C. Wait to respond to your competitors actions.
Explanation:
The best way to respond to our customer would be by to wait to respond to Pesi-cola's actions. By doing so, we have option to take best advantage out of the position. Furthermore, it is in the best interest of both competitors to increase the revenue by not sepending huge amounts on advertising products. And this is only possible if both Coca-cola and Pepsi-cola not investing in marketing products. So the only option here that gicves this option is Statement C.
It can also help to design better strategy to take advantage of the competitor's strategy.
Sherrie Hymes holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875. Stock Investment Beta A $50,000 0.50 B 50,000 0.80 C 50,000 1.00 D 50,000 1.20 Total $200,000 If Sherrie replaces Stock A with another stock, E, which has a beta of 1.50, what will the portfolio's new beta be
Answer:
The portfolio’s new beta will be 1.125
Explanation:
In this question, we are interested in calculating the portfolio’s new beta given the value of the beta of the stock which is used in replacing it.
We apply a mathematical approach here.
Mathematically;
Portfolio beta=Respective beta * Respective investment weight
=(50,000/200,000*1.5)+(50,000/200,000*0.8)+(50,000/200,000*1)+(50,000/200,000*1.2)
= 0.375 + 0.2 + 0.25 + 0.3 = 1.125
AB Builders, Inc., has 17-year bonds outstanding with a par value of $2,000 and a quoted price of 94.863. The bonds pay interest semiannually and have a yield to maturity of 7.07 percent. What is the coupon rate
Answer:
13.47%
Explanation:
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
7.07% = {coupon + [($2,000 - $1,897.26)/34]} / [($2,000 + $1,897.26)/2]
7.07% = (coupon + $3.0218) / $1,948.63
coupon + $3.0218 = $1,948.63 x 7.07% = $137.7681
coupon = $137.7681 - $3.0218 = $134.7463
semiannual coupon rate = $134.7463 / $2,000 = 0.06737 x 2 = 0.1347 ≈ 13.47%
The table below shows a summary of Kaitlin's credit card statement for the month of February.
Transaction types Amount
Unpaid balance from January (Beginning balance on February 1) $2802.38
Purchases made during the month of February $543.55
Payments made during the month of February $389.60
Complete the parts below. Write your answer to the nearest cent. (a) Suppose the credit card company charges 1.9% monthly interest on the unpaid balance from January. How much interest will this be? (b) What will Kaitlin's unpaid balance be on her March 1 statement? (Assume that this balance will include the interest from part (a), but will not include any interest on her February balance yet.)
Answer:
A) 32 percent interest B) Yes it will be paid
Explanation:
23 times 42 divided by 7
On February 1, 2021, a company loans one of its employees $29,000 and accepts a ten-month, 8% note receivable. Calculate the amount of interest revenue the company will recognize in 2021
Answer:
Calculation of interest revenue:
Interest revenue = $29,000 x 8% x 10/12 = $1,933
Explanation:
a) Data and Calculation:
Feb. 1, 2021 Loan to employees = $29,000
Ten-month, 8% note receivable
Interest revenue = $29,000 x 8% x 10/12 = $1,933
The note is for 10 months, but the rate of interest is 8% per annum. After the rate is applied on the loan to get an interest of $2,320, this will then be multiplied by 10 and divided by 12 to get the 10 months interest revenue. These loans to employees are expected to be repaid by the end of November, 2021 with the interest.
Amy owns a salon and spa. She’s leasing a prime piece of real estate in which she’s installing salon chairs, counters, massage tables, spray tan vestibules, washers, and dryers. What are these items considered?
The correct answer to this open question is the following.
Amy owns a salon and spa. She’s leasing a prime piece of real estate in which she’s installing salon chairs, counters, massage tables, spray tan vestibules, washers, and dryers. These items are considered commodities and pluses that improve the quality of the leasing and upgrade the facility. These are also tools to help the new operator to properly do the work and offer great client service. With all those elements, Amy can justify the amount of money she asks for the rent of the space. More items included, the higher the prize.
A July sales forecast projects that 7,300 units are going to be sold at a price of $11.80 per unit. The management forecasts 15% growth in sales each month. Total July sales are anticipated to be:
Answer:
Budgeted sales= $86,140
Explanation:
Giving the following information:
A July sales forecast projects that 7,300 units are going to be sold at a price of $11.80 per unit.
The budgeted sales are calculated by multiplying the sales in units with the selling price per unit:
Budgeted sales= 7,300*11.8= $86,140
You want to buy a new sports coupe for $74,500, and the finance office at the dealership has quoted you a loan with an APR of 6.9 percent for 36 months to buy the car.
Required:
a. What will your monthly payments be?
b. What is the effective annual rate on this loan?
Answer:
a) Monthly payments = $22,969.38
b) Effective rate of return= 7.12%
Explanation:
Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.
The monthly installment is computed as follows:
Monthly installment= Loan amount/annuity factor
Loan amount; = 74,500
Annuity factor = (1 - (1+r)^(-n))/r
r -monthly rate of interest, n- number of months
r- 6.9%/12 = 0.575 % = 0.00575, n = 36 =
Annuity factor = ( 1- (1+00575)^(-36)/0.00575= 32.434
Monthly installment = Loan amount /annuity factor
= 74,500/32.434= 22,969.38
Required monthly payments = $22,969.38
Effective annual interest rate
Effective rate of return = ((1+r)^n- 1) × 100
where r - monthly interest rate- 6.9%/12 = 0.575%
n- number of months= 12 months
Effective rate of return - (1+00575)^(12) - 1× 100= 7.12%
Effective rate of return= 7.12%
The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.
Required:
Compute the total equivalent units of production for direct materials and conversion costs for October.
Answer:
Equivalent units
Material 62,000
Conversion cost 24,000
Explanation:
Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.
Equivalent units = Degree of completion (%) × Number of units
Equivalent unit for Material
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 100% = 24,000
Equivalent unit of material 62,000
The degree of completion for WIP is taken to be 100% because materials are always added at the beginning, therefore all the amount of raw material required is already imputed.
Equivalent unit for Conversion cost
Item unit Equivalent units
Transferred out 38,000 × 100% = 38,000
Closing WIP 24,000× 20% = 4800
Equivalent unit of conversion 42,800
Equivalent units
Material 62,000
Conversion cost 24,000
Union local school district has a bond outstanding with a coupon rate of 3.3 percent paid semiannually and 20 years to maturity. The yield to maturity on this bond is 3.7 percent, and the bond has a par value of 10000. What is the price of the bonds?
Answer:
$9,438.22
Explanation:
For computing the price of the bond we need to apply the present value formula i.e be to shown in the attachment below:
Given that,
Future value = $10,000
Rate of interest = 3.7% ÷ 2 = 1.85%
NPER = 20 years × 2 = 40 years
PMT = $10,000 × 3.3% ÷ 2 = $165
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the price of the bond is $9,438.22
Assume an economy in which there are three securities: Stock A with rA = 10% and σ A = 10%; Stock B with rB = 15% and σ B = 20%; and a riskless asset with r RF = 7%. Stocks A and B are uncorrelated (rAB = 0). Which of the following statements is most correct?
A. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 10%.
B. The expected return on the investor's portfolio will probably have an expected return that is somewhat above 15% and a standard deviation (SD) of approximately 20%.
C. Since the two stocks have a zero correlation coefficient, the investor can form a riskless portfolio whose expected return is in the range of 10% to 15%.
D. The investor's risk/return indifference curve will be tangent to the CML at a point where the expected return is in the range of 7% to 10%.
E. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 15% and a standard deviation (SD) that is between 10% and 20%.
Answer: E. The expected return on the investor's portfolio will probably have an expected return that is somewhat below 15% and a standard deviation (SD) that is between 10% and 20%.
Explanation:
Out of the three securities, the highest return that can be received is 15%. It will therefore be impossible for the entire portfolio to go past 15% in returns because even if a 100% of the portfolio is invested in stock B (Stock with 15%), the highest return will be 15%. With other returns stock added, the return will decrease from the highest return receivable so will be under 15%.
The same logic applies for the standard deviation. The highest standard deviation is 20% so the deviation will not exceed this but it will be lower than this due to the presence of less risky stocks in A and the the riskless asset.