)In six months, your company plans to issue a 1.5 year zero coupon bond with a face value of $500,000 to finance a small acquisition. If the traditional expectations theory of the term structure is correct, and if the risk of your company's bonds is similar to that of the above bonds, what is the expected price of your company's bond at issue (i.s., in six months hence)

Answer:

Now fit each of following terms into the most appropriate space: Financing, real, bonds, investment, executive airplanes, financial, capital budgeting, brand names.

Companies usually buy real assets. These include both tangible assets such as executive airplanes and intangible assets such as brand names. To pay for these assets, they sell financial assets such as bonds . The decision about which assets to buy is usually termed the investment or capital budgeting decision. The decision about how to raise the money is usually termed the financing decision.

Answer:

Gain on disposal = $7600

Explanation:

As the machine is sold on 1 April 2024, we first need to update the depreciation expense and charge the depreciation to the date. The depreciation has been charged till 1 December 2023. So, we need to charge the depreciation for three more months.

The formula for depreciation expense under straight line method is,

Depreciation expense per year = (Cost - Salvage value) / Estimated useful life

Depreciation expense per year = (24000 - 0) / 5

Depreciation expense per year =  $4800 per year

Depreciation expense for three months = 4800 * 3/12 = $1200

Accumulated depreciation 1 April 2024 = 14400 + 1200  =  $15600

To calculate the gain or loss on disposal, we first need to determine the net book value of asset and deduct it from the cash received on disposal.

NBV = Cost - Accumulated depreciation

NBV = 24000 - 15600

NBV = $8400

Gain on disposal = 16000 - 8400

Gain on disposal = $7600

Answer:

.....................................................Stuart Company.......................................

.......................................Statement of Cash Flows ....................................

........................................For the year ended 2019...................................

Cash Flow from Operating Activities:  

Net Income........................................................................$8,100,000    

Add Depreciation Expense.................................................$200,000  

Net Cash provided (used) by operating activities: ......$8,300,000

Cash Flow from Investing Activities:  

Purchase of manufacturing equipment ...........................-$1,000,000  

Net Cash provided (used) in Investing activities.............-$1,000,000

Cash Flow from Financing Activities:....................................$0.00

Net cash flow in 2019 ...........................................................$7,300,000

Depreciation of equipment;

= Cost / Useful term

= 1,000,000 / 5

= $200,000

Answer:

Jenny will stay in the short and long run and Joe will stay in the short run and exit in the long run.

Explanation:

Joe's price is > average variable cost but <  than average total cost. This means that he can continue to operate in the short run as long a the AVC is lower than the price, but on the long run he will close. He will not be able to make a profit in the long run, but his business can "survive" in the short run.

Jenny's price is > average variable cost and >  than average total cost. She can continue to operate in the short and long run.

Answer:

b

Explanation:

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Answer: A debit to Long-Term Investments-HTM $300,000

Explanation:

A journal entry is the act of making records of the transactions that takes place and such transactions typically shows the debit and credit balance of the company.

From the question, we are informed that Landmark Corp. buys $300,000 of Schroeter Company's 8% five-year bonds payable at par value on September 1. Interest payments are made semiannually and that Landmark plans to hold the bonds for the five year life.

The journal entry to record the purchase should include a debit to Long-Term Investments-HTM $300,000.

Answer: $98.36

Explanation:

Based on the information that has already been given in the question, the following can be analysed:

For Loan 1:

Interest Rate = 7%

Nper = 30

Present value = $100000

With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:

= pmt(rate, nper, pv,fv)

= pmt(7%/12,30×12,-100000,0)

= pmt(0.07/12,360,-100000,0)

= $665.30

For Loan 2:

Interest Rate = 7%

Nper = 30

Present value = $100000

Future value = $120000

With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:

= pmt(rate, nper, pv,fv)

= pmt(7%/12,30×12,-100000,120000)

= pmt(0.07/12,360,-100000,120000)

= $566.94

The difference in the monthly payments will be:

= $665.3 - $566.94

= $98.36

Answer:

Option “D” Specific.

Explanation:

Option “D” Specific is the correct answer because the specific goal is the success goal and this goal encompasses the actions and plans that exhibit the way to achieve the goal. Moreover, the performance of the actions tells whether the goal will be achieved or not. If teamwork for a common goal then it is the technique to increase chances to achieve success by setting their goals as the specific goals.

Answer:

Tax law uncertainty.

Explanation:

The “Tax law uncertainty” is the correct answer because it can be seen in the question that Congress has disallowed the deductions for advertisement in the future tax years. Since the decisions that the government takes are confidential and only a few people are aware of the decisions before its formal announcement. So the same case is here, Jolsen had a contract of $375000 annually and it will estimate that after obtaining the tax deduction, the advertisement cost will be lower. But the changes in the tax laws result in underestimated after-tax cost by Jolsen.

Answer:

GNP can be taken as the total output produced by the citizens.

GNP = Worth of hay + worth of harp music service

GNP = $15 million + $7 million

GNP = $22 million.

GDP can be seen as the total output produced in the country.

GDP = Worth of hay + worth of harp music service in the country

GDP = $15 million + $5 million

GDP = $20 million

Net factor payment from abroad is the difference between GNP and GDP.

Net factor payment from abroad= GNP - GDP

= $22 million - $20 million

= $2 million

Net exports = Hay sold abroad - Imports of soda pop

Net exports = $4 million - $6 million

Net exports = -$2 million

As the harp music played in abroad will not be included in GDP and thus it is not included in net exports

Current Account balance = Net exports + Net factor payments

Current Account balance = -$2 million +$2 million

Current Account balance = $0

Gross Domestic Product (GDP) measures the amount of goods and services that the final product — that is, those purchased by the end-user — produced in the country over a period of time (that is quarter or year).

GDP measures the amount of goods and services produced within national borders, by citizens and non-citizens alike. The GNP measures the amount of goods and services produced by citizens both domestically and abroad.

As per the given information:

Calculation of GNP:

[tex]\rm\,GNP = Worth \;of \;hay + Worth \;of \;harp \;music \;service\\\\GNP = \$15 million + \$7 million\\\\GNP = \$22 million.[/tex]

Calculation of GDP:

[tex]\rm\, GDP = Worth\; of \;hay + Worth \;of \;harp\; music\; service\; in \;the\; country\\\\GDP = \$15 million + \$5 million\\\\GDP = \$20 million[/tex]

Net factor payment from abroad is the difference between GNP and GDP:

[tex]\rm\,Net \;factor \;payment \;from\; abroad = GNP - GDP\\\\\rm\,Net \;factor \;payment \;from\; abroad = \$22 million - \$20 million\\\\\rm\,Net \;factor \;payment \;from\; abroad = \$2 \;million[/tex]

Calculation of net exports:

[tex]\rm\,Net\; exports = Hay\; sold \;abroad - Imports \;of \;soda\; pop\\\\Net\; exports = \$4\; million - \$6 \;million\\\\Net \;exports = -\$2\; million[/tex]

Harp music played abroad will not be included in GDP and therefore it is not included in net exports.

[tex]\rm\,Current \;Account\; balance = \;Net \;exports + Net\; factor \;payments\\\\Current \;Account \;balance \;= -\$2 \;million +\$2\; million\\\\Current\; Account\; balance = \$0[/tex]

Hence, with the given information we have calculated GNP, GDP. net factor payment, net exports, and current account balance.

To learn more about GDP, refer:

https://brainly.com/question/1383956

Answer: Unearned Revenue

Explanation:

The $80,000 should be recorded as Unearned Revenue because under the Accrual Principle of Accounting, revenue should only be recognized when the services that were paid for her been given.

If the services have not been given and revenue is accrued, the company should not recognize this as revenue but rather as Unearned revenue. They will only recognize it when they have delivered the rent service. Until then, the unearned revenue will be considered a liability.

Answer:

Bonds payable Dr $50,000

To cash Cr $50,000

Explanation:

Debit to bonds payable in the amount of $50,000.  Upon maturity, bonds payable will be debited by their face value of $50,000.

The premium received on bonds will be written off in phased manner over the life of the bonds.  i.e $60,000 -50,000 = $10,000,

The Journal entry will be:

Date    Account Title              Debit         Credit

            Bonds payable       $50,000

                  Cash                                       $50,000

Answer:

Jackson 13.75%

Henri 15.3%

Explanation:

Interest = principal x rate x year

Jackson

$2750  = $20,000 x rate x 1

divide both sides by $20,000

rate = 0.1375 = 13.75%

Henri

$2295 = $15,000 x rate x 1

divide both sides by $15,000

Rate = 0.153 = 15.3%

Answer:

$101,104

Explanation:

Calculation for the equivalent annual worth

Using this formula

Equivalent annual worth=Operating cost(A/P,i,n)+ Operating cost

Let plug in the formula

Equivalent annual worth=80,000(A/P,10%,5) + 80,000

Using financial calculator (A/P,10%,5) will give us (0.26380)

Hence,

Equivalent annual worth=80,000(0.26380) + 80,000

Equivalent annual worth=$21,104+$80,000

Equivalent annual worth== $101,104

Therefore the Equivalent annual worth will be $101,104

Answer: 0.143

Explanation:

Given the following :

Average package weight(m) = 1.9kg

Standard deviation(sd) = 1.4kg

Upper Tolerance Limit (UTL) = 2.5kg

Lower Tolerance limit (LTL) = 1.1kg

Cpk = min[( average weight -Lower Tolerance Limit / 3 (standard deviation) , (UTL- average weight / 3(Standard Deviation)]

Cpk = min[( 1.9 - 1.1 / 3 (1.4)) , (2.5 - 1.9 / 3(1.4))]

Cpk = min[(0.8 / 4.2), (0.6 / 4.2)]

Cpk = min[0.190, 0.143])

Hence,

Process capability index = 0.143

Answer:

a. People become tired when they wear athletic clothes - No relationship

b. People who visit dentist are likely to get cavity - Reverse causation

c. Drinking lot of water causes sunburn - No relationship

d. Cars that mechanics work on are more likely to break down - Reverse causation

Note: The No relationship represents Omited Variable.

Answer: A) Vertical Analysis.

Explanation:

Vertical Analysis is a method used to analyse the financial statement and it works by converting every entry in a statement to a percentage of the base figure in the statement.

In the Balance Sheet, the base figure will be the total amount of Assets so when any other entry is made a percentage of assets such as was done to the Accounts Receivables of ABC company, this is a Vertical Analysis.

Explanation:

Analyzing the situation exposed in the question above, it is correct to state that the manager was malicious in assuming the credits for his subordinate's extra work and acted in an unethical manner.

These situations can happen due to the fact that many employees are afraid to confront their manager for bad behavior due to their hierarchical position and the fear of being warned or losing their jobs, so these situations can be common in companies.

The ideal in this situation would be an assertive reaction, using an ethical and professional approach to know the manager's motivation to act in that way.

It is also valid for other employees to know that their work is being carried out, so that this type of manager behavior is minimized, as there may be a fear of being exposed by the team.

The relationship between manager and subordinate must be based on trust and mutual respect, so that the work is carried out efficiently and each one can do their best to achieve the team's goals.

Answer:

Average fixed cost per unit= $24.79

Explanation:

Giving the following information:

The total fixed inspection cost is $183,446.

Activity units= 7,400 machine-hours

To calculate the average fixed inspection cost, we have to divide the total fixed inspection cost by the actual number of activity units.

Average fixed cost per unit= 183,446/7,400

Average fixed cost per unit= $24.79

Answer:

The correct answer is the last option: All final goods and services produced in an economy in a given year.

Explanation:

To begin with, the "Gross Domestic Product" or GDP, is known as an macro economic variable which tends to be one of the most important ones that reflects the value market of all the final goods and services that are produced in an economy in a particular amount of time. Moreover, this variable is an important factor to consider when it comes to comparing nations living standards and more. It is quite helpful for the economists to use this variable as a way of knowing how is the economy of the country going and under what subvariable is everything going.

Answer:

$5,000 net cash inflow

Explanation:

The computation of the cash flow from operating activities is shown below:

As we know that

Increase in cash = Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities

$6,000 = Cash flow from operating activities - $2,000 + $3,000

So, the cash flow from operating activities is

= $6,000 - $1,000

= $5,000 net cash inflow

Answer:

A

Explanation:

Answer:

1.Occupancy days $3,760

Electrical costs $10,528

Variable cost=2.80

Fixed cost=$650

2. Seasonal factors

Systematic factors

Number of days

Explanation:

1.Calculation using high and low method for both Occupancy days and Electricity cost

Occupancy Electrical

Days Costs

High activity level 4,410 12,998

Low activity level 650 2,470

Change 3,760 10,528

Calculation for Variable cost of electricity per occupancy-day.

Using this formula

Variable cost= Electricity cost/Occupancy days

Let plug in the formula

Variable cost=10,528/3,760

Variable cost=2.80

Calculation for Fixed cost of electricity per month

Fixed cost=2,470-(650*2.80)

Fixed cost=2,470-1,820

Fixed cost=$650

2. Factors that are likely to affect the variation in electrical costs from month to month will include the following:

Seasonal factors

Systematic factors

Number of days

Seasonal factors can either be winter or summer.

Systematic factors include either having guests, To switch off fans as well as lights.

Number of days are days that are present in a month.

Answer:

In a true communist economy, the community makes decisions. In most communist countries, the government makes those decisions on their behalf. This system is called a command economy.

Answer:

27

Explanation:

The computation of the optimal stocking level for the bakery is shown below:

Given that

Cost = c = $7

Selling price =  p = $ 10

salvage value =  s = $ 5

Mean = 25

Standard deviation = [tex]\sigma[/tex]= 8

Now based on the above information

underage cost = Cu  = p-c = $10 - $7 = $3

And,

overage cost = Co = c-s = $7 - $5 = $2

So,

[tex]\frac{P\leq C_{u}}{(C_{u}+C_{o})}\\\\\frac{P\leq3}{(3+2)}[/tex]

= 0.6

Now use normsinv() function in excel

So,

The Z value for the probability 0.6 is 0.2533

Now finally

The optimal stocking level is

[tex]=\mu +z\sigma[/tex]

= 25 + 0.2533 × 8

= 27.02

= 27

Answer:

1) This question is about whether diversification is good or bad for a large corporation. Whether diversification can be considered good or bad depends on the corporation itself, there is no one answer fits all. In this case, Sony is divided into 12 segments or divisions and each of them generates their own cash flows and offers their own products or services.

High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.

When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.

2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.

Answer:

To evaluate the overall performance of an employee.

Explanation:

Given that the Performance Appraisal is a systematic analysis and assessment of both the single employee or the group of employees as a whole

Hence, the basic purpose of a performance appraisal system is to evaluate and assess the overall performances of employee(s), or team, specifically in the area of work responsibilities, assignments, workplace affair, leadership skills, and potentials.

Answer:

a. Operating Profit will be;

= Sales - Costs

= (270 - 120 ) * 5,000 - 300,000

= $450,000

b. Sales price increases by 20% = 270 * ( 1 + 20%)

= $324

Sales price decreases by 10% = 270 * ( 1 - 10%)

= $243

Operating profit if price decreases;

= (243 - 120 ) * 5,000 - 300,000

= $315,000

Operating profit if price increases;

= ( 324 - 120) * 5,000 - 300,000

= $720,000

c. Variable cost increases by 20% = 120 * ( 1 + 20%)

= $144

Variable Cost decreases by 10% = 120 * ( 1 - 10%)

= $108

Operating profit if variable cost decreases;

= (270 - 108 ) * 5,000 - 300,000

= $510,000

Operating profit if variable cost increases;

= ( 270 - 144 ) * 5,000 - 300,000

= $330,000

d. Fixed costs lower by 10% = 300,000 8 ( 1 - 10%)

= $270,000

Variable costs increase higher by 10% = 120 * ( 1 + 10%)

= $132

= (270 - 132) * 5,000 - 270,000

= $420,000

Operating profit will be down by $30,000 as a result of a 10% increase in variable costs and a 10% decrease fixed costs.

Answer:

he best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated

Explanation:

Based on the information provided, the best course of action for Acme to take would be to produce the 1,000,000 products as the accountants have stated. From solely taking into account the fixed costs of producing the products, if the company were to produce the desired amount and sell them they would recover a total of 8,000,000 from the costs that they have incurred in Research & Development. This is not taking into account the variable costs that may be incurred, still, they recover much of what they have already spent.

Answer:

The special return will be for 23,330.11 at year 3

Explanation:

we know that the expected return AKA internal rate of return is 12.30 per year

we set up the time-line for the investment:

F0 -56,000 investment

constant return of 12,000 for 5 years.

additional return at F3

F0 + PV of the F3 return + PV of the 12,000 annuity = 0

present value of the annuity:

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 12,000.00

time 5

rate 0.123

[tex]12000 \times \frac{1-(1+0.123)^{-5} }{0.123} = PV\\[/tex]

PV $42,937.7486

Present value of the additional return:

56,000 - 42,937.75 = 13,062.25

Now, we know that this is the discounted amount of the nominal return at 12.30% during 3 years:

[tex]\frac{Nominal}{(1 + rate)^{time} } = PV[/tex]

[tex]\frac{Nominal}{(1 + 0.1230)^{5} } = 13,062.25[/tex]

Nominal = 23,330.11