Georgia should apologize and ask for details about the situation. Thus, option C is the correct option.
Who is the customer?A customer is a person who orders a product or purchases a product or a service forwards he pays money.
Firing the employee is not a good option as they have heard only the complaints of the customer and have not listened to the part of the employee.
Secondly, offering a store gift card to the customer is an option when we have done some kind of mistake, but over here they may take it as a form of gift and make other people also claim the same.
Giving the employer stern lectures is not a good option, as there must be some sort of misunderstanding that the is not know about.
So asking the customer what the problem is and ask him how he was this respected by the customer care person. By knowing the details, we are sure the customer that the steps will be taken, and we can also know the story of the scene which was being created. Therefore, option C is the correct option
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Adam's Apple Orchard Inc. (Adam's) deploys a fleet of 10 trucks to transport apples and other fruits from its growing fields to a central inspection and processing station. Adam's uses the services of Safety Inspection and Repair Company (SIRC) to maintain its fleet. Although each vehicle was typically scheduled for a maintenance check every six months, recent cost-cutting measures at Adam's resulted in a change to once-per-year inspection and maintenance. Last month, one of Adam's drivers was on his route when an intoxicated pedestrian stumbled onto the roadway. Although the driver had a clear view of the pedestrian, the brakes in the truck failed, and the pedestrian suffered injuries from the collision. The evidence revealed that the truck had been inspected on the previous day and found to need new brakes. A mechanic trainee, who was not yet certified installed the new brakes incorrectly and violated state safety inspection standards.
Based on the fact that the a mechanic trainee without certification was allowed to install the new brakes, the possible tortfeasor in this case are E. I, II and IV.
Who is the tortfeasor in this case?The tortfeasor refers to the person who is responsible for the action that caused injury to another person in a tort case.
In this instance, there will be three tortfeasors with the first being the mechanic trainee. The trainee knew that they were not certified and still went ahead to violate state safety inspection standards so they are liable.
Safety Inspection and Repair Company (SIRC) will also take responsibility for allowing the mechanic trainee to install the breaks when they should have exercised better oversight.
Finally, Adams Apple Orchard knew the breaks were not installed correctly and still drove the truck. There were grossly negligent in this instance and so will be responsible as well.
Rest of the question and options:
Adam’s driver knew the brakes were incorrectly installed and chose to drive the truck anyway to meet delivery deadlines.
Which of the following is a possible tortfeasor in this case?
I. Adams Apple Orchard.
II. Safety Inspection Repair Company
III. The pedestrian.
IV. The mechanic trainee.
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Please select the word from the list that best fits the definition
actions or activities that one person performs for another
The term from the list that best describes actions or activities that one person performs for another is services.
A service business is one in which the buyer's perception of the value of the offering is mostly based on the services rendered to him rather than the products made available. All intangible services offered to the customer fall under this category. Restaurants and supermarkets are two examples of tangible services where customers receive both goods and services, and which fall under the umbrella of services marketing. The variety of services varies depending on how tangible and intangible the offerings are to the user. Some offerings are obviously services, such as watching a movie, visiting an art gallery, or attending a sporting event.
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why is it so important that the mouth and stomach are near the start of the digestive system
The process is important to finish the digestion and absorption once the foodstuff has been swallowed.
What is the digestive system?The organs aid in the body's foodstuff digestion and absorption helps compensate the digestive tracts. It is a lengthy, twisted tube with a mouth beginning and the withdrawal is with the help of the anus.
Saliva production happens inside the mouth. This salivary amylase molecule, which is found in charge of breaking down carbohydrates, is present in saliva. This is done with the help of the digestion the absorption of the various materials.
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Operating profit is known as ________. Question content area bottom Part 1 A. earnings after tax B. earnings after interest and taxes C. earnings before interest and taxes D. earnings before depreciation and taxes
Operating profit is known as earnings before interest and taxes.
Profit describes the financial gain realized whilst sales generated from a business hobby exceed the prices, prices, and taxes concerned in sustaining the activity in query.
Profit is the money earned with the aid of an enterprise when its overall revenue exceeds its general expenses.
Any profit an organisation generates goes to its proprietors, who may also pick out to distribute the money to shareholders as earnings, or allocate it returned into the business to finance further enterprise increase. The technique of calculating earnings is straightforward: subtract an enterprise’s costs from its overall revenue over a set quantity of time.
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Sheila plans to use the same cover letter and resume for all her job applications so she can quickly apply to multiple jobs at once. What is the main problem with this approach?
A. She may get too many responses.
B. Employers prefer applicants to apply to one job at a time.
C. An error in one application will appear in all the applications.
D. Resumes and cover letters should be customized for each position.
Sheila plans to use the same cover letter and resume for all her job applications so she can quickly apply to multiple jobs at once. The main problem with this approach is resumes and cover letters should be customized for each position.
A cover letter serves as a company's initial introduction to you as a person.
While your CV will describe your prior job experience and skills, your cover letter will allow you to show recruiters your personal side. Employers get a large number of applications, many of which have similar backgrounds and experience.
A cover letter might assist them to filter down their candidate pool.
It customizes your application.
Even well-written resumes do not allow applicants to demonstrate their writing abilities.
By allowing applicants' characteristics to show through, a cover letter may help them sell themselves.
Recruiters gain an understanding of the individual beyond their professional experience and education.
It also allows them to talk about aspects of their past that may not be directly expressed on a resume.
Your cover letter, like your resume, should be customized to each position and organization.
Use industry-specific language that mentions points from the job description and company website instead of a template-style cover letter.
Hence, the problem is resumes and cover letters should be customized for each position.
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Week 2 Forum
Week 2 topic - Debits vs. Credits and what happens to an account when entries are changed.
Hide Full Description
This is the discussion forum topic for Week 2:
Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh
Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a
substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh's elite social
circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by
simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy
changed the debits from "rent expense" to "prepaid rent" on several entries. Later, Hugh got his bonus,
and the deviations were never discovered.
Requirements
How did the change in the journal entries affect the net income of the company at year-end?
Who gained and who lost as a result of these actions?
You could struggle as a business owner to know when to use a debit and when to utilize a debits and credits in accounting. Even so, you could be unsure of their relevance.
You can check that you're following the accounting equation by using debits and credits. The accounting equation is:
Assets = Liabilities + Equity
Any transaction that is recorded includes at least two accounts in double-entry accounting, with one account being debits and credits and the other being credited. To keep your accounts in balance, your debits and credits must always equal one another. Debits are always entered on the left side of the entry, while credits are always entered on the right.
Debits and credits are the foundation of precise accounting for a business, whether you're operating a sole proprietorship or a publicly traded enterprise. In contrast to credits, debits result in a gain in asset or expense accounts and a drop in liability accounts. Recording these transactions can get more difficult as your business expands, but it's important to get it right to keep your books balanced and monitor your organization's progress.
The double-entry accounting method is utilized by the majority of organizations, including small firms and sole proprietorships. This is because tracking debits and credits every business transaction in at least two accounts enables a more dynamic financial picture.
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In 2010 Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 million in taxable gifts). Calculate the amount of gift tax due this year and Casey’s unused exemption equivalent under the following alternatives. (Refer to Exhibit 25-1 and Exhibit 25-2.) (Enter your answers in dollars, not millions of dollars. Leave no answer blank. Enter zero if applicable.)
a. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.
a. Assuming Casey was unmarried in 2015, the 2015 donation would have utilized $1 million of his relevant deduction amount (and paid tax on the gift above 10 million). Casey would have had an unused exemption equivalent to $4.43 million in 2015.
Current taxable gift $1,000,000
prior taxable gift $10,000,000
Cumulative taxable gift $11,000,000
Casey would be eligible for a credit for the tax on the 2010 gift computed using the 2015 tax rate schedule ($3.945,800), and he would utilize a portion of his leftover exemption equal to offset the remaining tax ($400,000) as follows:
Tax on cumulative taxable gift $4,345,800
Less: current tax on prior taxable gift ($3,945,800
Tax on current taxable gifts $400,000
Unified credit on current taxable gifts ($400,000
Gift tax due $0
Take note that Casey is in the highest marginal gift tax bracket, and that $1 million multiplied by 40% equals the gift tax on current donations of $400,000.
b. Casey utilized $1 million of his exemption equivalent in 2010, therefore he would have an unused exemption equivalent of $4.43 million in 2015. This indicates that the exemption equivalent will not cover $570,000 of the present donation ($5,000,000 - $4,430,000 $570,000).
Current taxable gift $5,000,000
prior taxable gift $10,000,000
Cumulative taxable gift $15,000,000
The unused unified credit is computed as the difference between the tax on the whole exemption equivalent and the tax on the utilized exemption equivalent:
Current tax on full exemption $2,117,800
Less: Tax on used exemption equivalent ($345,800)
Tax on current taxable gifts $1,772,000
Tax on cumulative taxable gifts $5,945,800
less: Current tax on prior taxable gift ($3,945,800)
tax on current taxable gift $2,000,000
unused unified taxable gifts ($1,772,000)
gift tax due $228,000
Take note that Casey is in the highest marginal gift tax bracket, and that $570,000 multiplied by 40% is a gift tax on current donations of $228,000. Casey will have no unused exemption equivalents at the end of 2015.
c. Casey and Helen would not owe any tax on their 2015 gifts if they used gift splitting. Casey and Helen will be considered as having contributed a $2.5 million gift each, and both fts will be entitled for an annual exclusion. As a result, Casey and Helen each gave $2,486,000 ($2.5 million - $14,000). Casey utilized $1 million of his exemption equivalent in 2010, thus he would have an unused exemption equivalent of 54.43 million in 2015 (a unified credit of $1,772,000, as computed above). Casey will compute the gift tax on his portion of the gift as follows:
current taxable gift $2,486,000
prior taxable gift $10,000,000
cumulative taxable gift $12,486000
tax on cumulative taxable gift $4,940,200
less: current tax on prior taxable gift ($3,945,800)
tax on current taxable gift $994,400
unified credit on current taxable gift ($994,400
Gift tax due $0
Casey is subject to the highest marginal gift tax rate, therefore the gift of $2.486.000 multiplied by 40% equals the gift tax on current donations of $994,400. Casey would still have an unused exemption equal of $1.944 million at the end of 2015 (5.43 million less $1 million spent in 2010 less 2.486 million utilized in 2015).
Helen will not have to pay any transfer taxes on her gift. Her donation will be tax-free since she has a $5.43 exemption equivalent available in 2015. Helen will have $2,944,000 of exemption equivalent remaining after applying the 2015 exemption equivalent ($5.43 million - $2.486 million)
What is an amount of gift tax due?In 2021, one may gift $15,000 to another in a year and generally not have to deal with the IRS about it. In 2022, this highest or peak amount that can be gifted is $16,000. If one gift more than $15,000 in cash or assets in a year to another, one needs to file a gift tax return.
Therefore, the correct answers are as given above.
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The complete question goes thus:
In 2010, Casey made a taxable gift of $6.1 million to both Stephanie and Linda (a total of $12.2 million in taxable gifts).
Calculate the amount of gift tax due this year and Casey's unused exemption equivalent under the following alternatives.
1. This year Casey made a taxable gift of $1 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.
2. This year Casey made a taxable gift of $5 million to Stephanie. Casey is not married, and the 2010 gift was the only other taxable gift he has ever made.
3. This year Casey made a gift worth $5 million to Stephanie. Casey is married to Helen in a common law state, and the 2010 gift was the only other taxable gift he or Helen has ever made. Casey and Helen elect to gift split.
Describe the economic impact of inflation on both businesses due to raising or lowering the price of their products.
Demand-pull inflation takes place when an increase in the supply of cash and credit stimulates the overall demand for goods and services to increase extra rapidly than the economy's manufacturing potential. This increases call for and leads to rate rises.
Inflation is a trendy boom in the prices of products and offerings in an economy. When the general charge degree rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a discount inside the shopping strength of money.
Inflation is the price of increase in costs over a given period of time. Inflation is usually a large degree, along with the overall increase in fees or the increase within the price of living in a country.
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gaming the gamers case study answers
(30 Marks)
a)Management of GENADE Travel and Tour has identified two groups of
individuals that would be interested in the vacation package consisting of room and
board and/or entertainment. The maximum amount that group 1 is willing to pay
for room and board is GHC 2500 and for entertainment is GHC 500. For
group 2,
the maximum amount they are willing to pay for room and board is GHC 1800 and
for entertainment is GHC 750. Although GENADE Travel and Tour is not able to
identify members of either group, it does know that each group values the
components of the package differently. Assuming there are an equal number of
members in each group and that the total membership in each group is a single
individual. If the marginal cost of providing the service. (room and board and/or
entertainment) to each group is GHC 1000.
The marginal cost of providing the service, For room and board GHC = 1800 And For entertainment GHC500.
If the management is not able to identify the group of customers, it should charge the minimum price customers are willing to pay as it does not lead to losing a market share and helps to compete in the market without identifying the group of customers. But this strategy is suitable only if the management is able to recover its marginal cost.
The maximum price for room and board = GHC 2500
The maximum price for entertainment = GHC 750
The minimum price for room and board = GHC 1800
The minimum price for entertainment = GHC500
Marginal cost = GHC1000
The minimum price customers are willing to pay = is GHC(1800 + 500).
Thus, The marginal cost of providing the service
For room and board GHC = 1800
And For entertainment GHC500
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HELP ME!!
Write a reflection on career and income
Career and income are subjects that are correlated, due to the fact that income is a reward acquired through the services established within a function, which, when performed effectively, has a greater possibility of career development and, consequently, income.
Is income an indicator for career choice?Although the income associated with a particular career can be an indicator that leads professionals to seek qualification in that area, it should not be the focus of choosing a career, because each individual has a greater inclination towards a certain different professional area. , aligned to your profile, skills and desires.
Therefore, the appropriate career is one that is aligned with the individual and their inherent or acquired characteristics and skills, with income being a positive consequence of a job well done.
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What is an economic impact of sports and entertainment events on a community?
The economic impact of sports and entertainment events on a community is that major sporting events and entertainment have their main economic impact via the direct expenditure of tourists associated with the event.
A conducted research shows that the economic impact of sports and entertainment events on a community is major, as it leads to the creation of new jobs, increased sales in certain market segments, increased consumer spending, and increased tax revenue.
Sports are considered to be a telling reflection of a society's values, and so they are a significant contributor as well. Sports impact our culture, other sources of entertainment, and our economy via the direct expenditure of tourists associated with the event.
Hence, sports and entertainment have a great economic impact.
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common size statemnts are presented as percentages to promote comparisons between different size companies
This statement is True that common size statements are presented as percentages to promote comparisons between different size companies .
What are common size financial statements ?
Items are shown as a percentage of a common base amount, such as total sales revenue, in a financial statement of common size. This kind of financial statement makes it simple to compare one company to another or different time periods within the same company. However, any comparison could not be true if the organizations employ various accounting systems.
Total sales revenue is the usual metric used in the examination of an income statement of a typical size. The calculation of the common size percentages shows each line item as a percentage of the average amount or revenue.
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Complete Question - Common size statements are presented as percentages to promote comparisons between different size companies. This statement is True or False
Good note-taking requires that you write down every word spoken by the instructor_
True or False
Answer:
False.
Explanation:
I think it depends on the instructor. Some can't explain very well and tend to talk relatively fast to get everything done on time. Some people can't write as fast and for good note-taking I suggest write down the things you know you will probably have trouble with overtime and should word things the way you can understand it. It's good if the instructor tends to make sense in your brain, but it's just not relatively possible unless they repeat it or go slower countless times.
Answer: FALSE
Explanation:
YUP THATS RIGHT
14. Why is it important to prioritize steps to solve a problem?
O It will ensure that you reach the best solution.
O It will keep people from complaining about the solution.
O It will help you decide which steps are most important.
O It will make the communication less confrontational.
It will help you reach a solution that will be as fair and reasonable as possible. :)
Are managers actively involved in decision making of Eskimo
Answer:By involving others in the decision-making process, you create an opportunity for colleagues to share ideas, learn from each other, and work toward a common goal. In turn, you foster collaboration and help break down organizational silos
Explanation:
Answer:
no that are not because manager are the person who make u kick from job
Creating and following a budget will help prevent common college financial mistakes,
such as racking up credit card debt or misusing your loan money.
True or False
Answer:
True
Explanation:
Thats true, because when you know your budget, there will be less mistakes about money, you will know your ends.
Reflect: In terms of dealing with workplace harassment, how effective do you think mandatory training in a school curriculum would be? Justify your answer.
Harassment prevention training raises awareness throughout the organization about what harassment is and the role employees can play in creating a safe and harassment-free work culture.
An effective curriculum provides teachers students school leaders and community stakeholders with measurable plans and structures for delivering quality education. The curriculum identifies the learning outcomes, standards, and core competencies that students must demonstrate before progressing to the next level.
Curriculum Evaluation Determines curriculum quality, program effectiveness, processes, and deliverables. Curriculum assessment is different from student assessment. A broader term is used to assess the value and effectiveness of a curriculum. The study room should have three areas. First, an area for loud brainstorming, an energetic area where the atmosphere is instantly electrified.
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According to the World View, what percent of the total population is serving in the military in
Currently, less than 0.5% of the population of the United States—or 1.3 million people—are on active duty.
A population is the entire set of people in a group, regardless of whether they are part of a nation or a collection of people who share a certain trait. The group of people from which a statistical sample is taken for a research is referred to as a population in statistics. As a result, a population can be defined as any collection of people who have something in common. Instead of the complete population, a sample may instead refer to a statistically significant fraction of the population. Because of this, a statistical analysis of a sample must provide an estimate of the standard deviation, often known as the standard error, of its findings from the full population. Only a population-wide analysis would be devoid of standard error.
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Identify each characteristics according to whether it applies to private or public companies or both
A private corporation is typically owned by its founders, management, or a collection of individual investors.
A corporation that has sold all or a portion of itself to the general public through an initial public offering is referred to as a public company.
What is difference between Private and Public Corporation ?
The way the two types of businesses approach public disclosure is one of the key distinctions. It is customary for a corporation to submit quarterly earnings reports to the Securities and Exchange Commission (among other things) if it is a public U.S. company, which means it trades on a U.S. stock exchange (SEC). The general public and shareholders have access to this information. However, as they do not trade shares on a stock exchange, private businesses are not compelled to disclose their financial information to anyone.
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Complete Question - Identify each characteristics according to whether it applies to private or public companies or both . If the property applies to neither structure , leave it unidentified .
The following balances are from the accounts of Santa Maria Parts:
July 1 (Beginning) September 30 (Ending)
Direct materials inventory $ 79,800 $ 97,400
Work-in-process inventory 72,600 40,200
Finished goods inventory 81,000 75,000
Direct materials purchased during the quarter amount to $510,000, and the cost of goods sold for the quarter was $1,770,000.
Required:
Prepare a cost of goods sold statement.
The Cost of Goods sold for the quarter contains $530,800 of material the complete statement is made as follows.
What is Cost of Goods sold?Beginning Direct Material $79,800
Beginning Work in process $72,600
Beginning Finished goods $81,000
Purchases during the period $510,000
Total balance available $743,400
Less: Total at end of the period $212,600
Direct Material $97,400
Work in process $40,200
Finished goods $75,000
Net Cost of Goods Sold for the period $530,800
Therefore the net cost of goods sold material cost is $530,800 and the difference between $530,800 and $1,770,000 is $1,239,200 includes the amount of labor, overheads and fixed costs that are directly attributable to the production of the goods and so are included as a direct cost in the cost of goods sold.
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what is bureaucracy from management point of view
Bureaucracy from management can be defined as the way in which the organization describes the way the task and the order are being maintained.
What is management?
Management can be defined as the process in which the managers manage various departments and take the action that is necessary for the running of the company.
Bureaucracy is a particular type of company that is characterized by structure, clear permanency, quality competence, administrative coordination and control, and legal power.
The power is regarded as the highest power and the decision will be made according to that only.
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What is a reason why a business should be managed ethically?
Multiple Choice
a.It's the right thing to do.
b.It's the law in the United States.
c.Your employees demand it.
d.There are strict global regulations require it.
What is a reason why a business should be managed ethically?
Multiple Choice
a.It's the right thing to do.
b.It's the law in the United States.
c.Your employees demand it.
d.There are strict global regulations require it.
There are strict global regulations require it.
What is the purpose of requiring contractors to pay overtime on government contracts?A.To allow workers to spend more time with their families
B.To discourage contractors from working on government contracts
C.To increase taxes paid by contractors
D.To encourage contractors to hire more workers
The purpose of requiring contractors to pay overtime on government contracts is D.To encourage contractors to hire more workers.
What is an overtime payment?Overtime payment is compensation compulsorily required by law, which employers must pay their workers for working beyond normal working hours.
As a compensation package, overtime payments encourage the workers to work more hours, ensuring that employers do not over-labor their employees without adequate compensation.
Paying overtime is not a requirement to discourage contractors, increase their taxes, or allow workers to spend more time with their families.
Thus, government contracts require contractors to pay overtime to encourage them to hire more workers instead of using overtime, which attracts a higher rate.
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Mrs Lopez is an independent agent
The statement that best describes the responsibilities of Ms. Lopez is: Ms. Lopez is considered a marketing representative of BestCare and thus is obligated to comply with CMS marketing requirements, including using only approved call scripts.
Who is a marketing representative?A marketing representative can be defined as someone whose duties is to advertise product to potential customers by creating brand or product awareness so as to attract buyers to the product.
Mrs lopez is a marketing representative of BestCare since we were told that Ms. Lopez tend to returns calls to individuals who contact MarketCo in response to its mailers promoting BestCare health plan.
Therefore the statement that best describes the responsibilities of Ms. Lopez is: Ms. Lopez is considered a marketing representative of BestCare and thus is obligated to comply with CMS marketing requirements, including using only approved call scripts.
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The complete question is:
Ms. Lopez is an independent agent under contract with MarketCo, a third-party marketing organization. MarketCo has a contract with BestCare health plan, a Medicare Advantage (MA) organization, to offer marketing services through its contracted agents and agencies. Ms. Lopez returns calls to individuals who contact MarketCo in response to its mailers promoting BestCare health plan. Which of the following best describes the responsibilities of Ms. Lopez?
Which of the following is an example of a "hidden task"
A. A graphic designer is trained to use a new type of design software.
B. The office manager maintains an inventory of office supplies because he knows employees need them.
C. The office manager proofread marketing material because she has excellent editing skills
D. The human resource manager stays up to date on laws regarding workplace safety.
An example of a "hidden task" is C. The office manager proofread marketing material because she has excellent editing skills.
What is a hidden task?A hidden task does not appear on the officeholder's task schedule.
A hidden task is done without a clear assignment. A hidden task forms part of a contingency management plan.
Training a graphic designer to use new design software is not a "hidden task." Maintaining an inventory of office supplies and being up-to-date on laws are not "hidden tasks."
By offering to proofread the marketing material based on her excellent editing skills, the manager shows flexibility with her schedule, notwithstanding that it was not an assigned task.
Thus, proofreading is an example of a hidden task that should be factored into a contingency management plan.
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1.According to the "real-balances effect," if prices
A-increase, the purchasing power of assets will decrease, so spending at each income level should rise.
B-decline, the purchasing power of assets will rise, so spending at each income level should rise.
C-increase, the purchasing power of assets will rise, so spending at each income level should rise.
D-decline, the purchasing power of assets will decrease, so spending at each income level should rise.
.According to the "real-balances effect," if prices decline, the purchasing power of assets will rise, so spending at each income level should rise.
The real-balance effect is considered as one of the three basic effects which indicate why aggregate expenditures are inversely related to the price level.
The real-balance effect will work like this: A higher price level always decreases the purchasing power of the money which results in a decrease in consumption expenditures or investment expenditures or government purchases and net exports.
A lower price level will also have the opposite affect which will cause an increase in the purchasing power of money that results in an increase in consumption expenditures, investment expenditures, government purchases, and net exports.
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Which model of communication best best accounts for the process and give reasons
The best-acknowledged communication models are the transmitter-receiver model according to Shannon & Weaver, the four-ear version in line with Schulz von Thun, and the iceberg version consistent with Watzlawick.
The interactive communication models are the handiest manner to provide an explanation for impersonal -way communication procedures.
The target audience appreciates it as each event is worried. This model is effective as it gives more whole expertise of a context related to relational, social, or cultural identities. It's far favored as it gives a threat to both events.
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A bondholder purchased an 8 percent coupon, $1,000 par three-year bond at a 7 percent yield. Interest rates then immediately fell to 6 percent and his bond was called at a price of $1,040. Did the call help or hurt the bondholder?
The bondholders will help in the calling as it will give them a benefit of 0.40%.
Who is a bondholder?A bondholder can be defined as a person who invests the in some sir kind of security, which is typically issued by some kind of organization or by a government.
The formula for the Future Price will be:
Future Price = Price Value x ( 1 + Rate ) No. of years
= 1040 x ( 1 + 6% )³
= 1040 x 1.191016
= 1238.67
The Price of the bond after three years is $1,274.04
Future Price = Price Value x ( 1 + Rate ) No. of years
1238.67 = 1000 x ( 1 + r )³
1238.67/1000 = ( 1 + r ) ³
0.123867= ( 1 + r ) ³
r = 0.074 or 7.40%
The rate of return is 7.40%
= 7.40% - 7 %
= 0.40%
Therefore, he was helped from the call as he earned 0.40% more than the rate of return.
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Answer:
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Explanation:
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