Answers
Answer:
10.75%
Explanation:
The computation of the effective annual interest rate is shown below:
= Interest ÷ total net amount available
where,
Total net amount available would be
= Loan amount - Loan amount × interest rate - loan amount × compensating percentage
= $25,000,000 - $25,000,000 × 8.25% - $25,000,000 × 15%
= $25,000,000 - $2062,500 - $3,750,000
= $19,187,500
And, the interest would be $2,062,500
Now put these values to the above formula
So, the rate would equal to
= $2,062,500 ÷ $19,187,500
= 10.75%
Related Questions
Assume that Hotel Excellent uses activity-based costing to allocate hotel overhead to guests. In Hotel Excellent, if the budgeted costs for the housekeeping department are $900,000, and total estimated activity-base usage is 27,000 hours, calculate the housekeeping department's activity rate. (Round answer to two decimal places.)a. $30.00 per housekeeping hourb. $45.00 per housekeeping hourc. $33.33 per housekeeping hourd. $35.88 per housekeeping hour
Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $300,000 starting at the beginning of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a operating lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1,800,000, based on implicit interest of 10%. What amount of amortization expense should be recorded for 2021?
onlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory, 30,000 partially complete gallons. Transferred out, 157,500 gallons. Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete). Started this month, 180,000 gallons. Required: a. Compute the equivalent units for materials using the weighted-average method. b. Compute the equivalent units for conversion costs using the weighted-average method.
What is the effect of contractionary fiscal policy in the short run?
Answers
Options:
a.The rate of inflation will rise.
b.The rate of inflation will decline.
c.The rate of inflation will remain unchanged.
d.The rate of inflation may rise or decline
Answer:b.The rate of inflation will decline.
Explanation:Fixed exchange rate is a term used in Economics to describe the "pegging" or fixes the amount to which its own currency will trade with a popular currency like the United States Dollar. This will give investors,importers and exporters more stability and confidence as they will not be scared of indiscriminate fluctuations. WITH THIS CONFIDENCE THE RATE OF INFLATION WILL DECLINE AS INVESTORS WILL NOT BE UNDER PRESSURE TO HOARD GOODS OR REDUCE THE VOLUME OF PRODUCTS RELEASED TO THE MARKET AND CONSUMERS WILL NOT BE UNDER PRESSURE TO BUY.
Answers
Answer:
The slope for the relationship between the price and the quantity of ice cream sold would be of -1/15
Explanation:
In order to calculate the slope for the relationship between the price and the quantity of ice cream sold we would have to calculate the following formula:
Slope= change in yaxis( vertical)/change in xaxis(horizontal)
Slope= change in price/change in quantity demand
Slope=P2-P1/Q2-Q1
Slope=3-4/35-20
Slope=-1/15
The slope for the relationship between the price and the quantity of ice cream sold would be of -1/15
Machine maintenance ($330,000) machine hours 250 750 1,000
Setups ($630,000) setups 35 20 15
Packing ($166,000) cartons 10 30 60
Photo development ($574,000) pictures 4,400 2,400 1,400
Deluxe textbooks are made with the finest quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.
Required:
Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:
Deluxe Moderate Economy
50,000 150,000 200,000
Determine the overhead cost per book for each book type.
Answers
Answer:
Deluxe= $4.25 per book
Moderate= $4.25 per book
Economy= $4.25 per book
Explanation:
Giving the following information:
Activity (Cost) Cost Driver Delux Moderate Economy
Machine maintenance ($330,000) machine hours 250 750 1,000
Setups ($630,000)
Packing ($166,000)
Photo development ($574,000)
First, we need to calculate the total overhead cost:
Total overhead= 330,000 + 630,000 + 166,000 + 574,000= 1,700,000
Now, we can calculate the estimated manufacturing overhead rate to allocate overhead to each book type.
The allocation base is machine-hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,700,000/ 2,000= $850 per machine hour.
Now, we can allocate overhead to each book:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Deluxe= $850*250hours= $212,500
Moderate= $850*750hours= $637,500
Economy= $850*1,000= $850,000
Based on the number of units, we can calculate the unitary overhead:
Deluxe= $212,500/50,000= $4.25 per book
Moderate= $637,500/150,000= $4.25 per book
Economy= $850,000/200,000= $4.25 per book
Final answer:
To determine the overhead cost per book for each type, we first establish the cost per unit/activity (machine hour, setup, carton, picture). Then, we multiply each activity cost by the respective number of activities for each book type. Finally, we divide the total overhead cost by the number of books produced. This method is known as Activity-Based Costing.
Explanation:
To determine the overhead cost per book for each book type, Activity-Based Costing (ABC) is used. This cost allocation method assigns overhead costs to each activity (or task) involved in the production process and then allocates these costs to the various products based on the volume of each activity they require.
Step 1: Calculate the cost per driver for each activity.
- Machine maintenance cost per machine hour: $330,000 ÷ 2,000 hours = $165/hour
- Setups cost per setup: $630,000 ÷ 70 setups = $9,000/setup
- Packing cost per carton: $166,000 ÷ 100 cartons = $1,660/carton
- Photo development cost per picture: $574,000 ÷ 8,200 pictures = $70/picture
Step 2: Calculate the total overhead cost for each book type by multiplying the cost per driver by the number of drivers for each activity.
Step 3: To find the overhead cost per book, divide the total overhead cost by the number of books produced.
From this exercise, it is clear that different products consume overhead resources differently and thus can have different per-unit overhead costs when you move from the traditional cost system to the Activity Based Costing method.
Learn more about Activity-Based Costing here:
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b. This type of risk is inherent in a firmâs operations. A standard measure of the risk per unit of return. This can be used to reduce the stand-alone risk of an investment by combining it with other investments in a portfolio.
c. A standard measure of the risk per unit of return
d. This type of risk relates to fluctuations in exchange rates
Answers
Answer:
Foreign exchange risk
Explanation:
These are the risks that an international financial transaction could accrue because of fluctuations in the currency.
A standard measure of the risk per unit of return and this type of risk relates to fluctuations in exchange rates.
Therefore, according to the following descriptions, the type of risk or term being described is Foreign exchange risk.
Answers
The current value of Jim's bonds are $8,749.57.
What is the value of Jim's bonds?
The value of the bond can be determined by calculating the present value of the cash flows of the bonds. The present value is the sum of discounted cash flows.
Value of the bond = present value of coupon payments + present value of the face value of the bond at maturity.
Present value of the face value of the bond at maturity = $10,000 / (1 + 0.0175^120) = $1247.01
Present value of coupon payments = future value / (1 + 0.07^30)
Future value = amount x annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- Amount = 1.5% x 10,000 = $150
- r = interest rate = 7%/4
n = number of years = 30 x 4 = 120
$150 x [({1.0175^120) - 1} / 0.0175] = $60,164.43
Present value = $60,164.43 / (1.0175^120) = $7,502.56
Value of the bond = $7,502.56 + $1247.01 =$8,749.57
To learn more about present value, please check: brainly.com/question/26537392
Answer:
current value is $8749.57
Explanation:
given data
face value = $10,000
maturity period = 30 = 30 × 4 = 120
interest = 1.5% every 3 month
solution
we will apply here bond price formula that is
bond price = coupon × ............................1
here r is rate and n is no of period and
so rate = = 1.75% = 0.0175
and coupon is $150
put here value
bond price = $150 ×
bond price = 8749.57
so current value is $8749.57
Answers
Please find attached full question Answera and Explanation:
Risk posture or cybersecurity posture is the general status or overall defense of the cybersecurity program in place in an organization to guard against cyber attacks and data breaches. For a company to maintain reasonable cyber security posture as there is no fool proof cybersecurity posture, there is need for regular continuous assessment of risk exposures and potential loopholes across the company's digital infrastructure. There are different digital and sophisticated infrastructures utilized by am organizations and most if not all are well prone to cyber attacks. These infrastructures are used by employees for work e. g-email, went servers, phones, networking devices and cloud programs etc . Therefore each employee must be educated in the need to safeguard company data by looking out for traps set by cyber attackers such as phishing in email and many other loopholes. Vulnerability tests need to be performed at regular intervals and reports monitored and analyzed to protect against a potential source of cyber attack.