Answer:
You hold two bonds. One is a 10-year, zero coupon, issue and the other is a 10-year bond that pays a 6% yearly coupon. A similar market rate, 6%, applies to the two securities. In the event that the market rate increases from the present level, the zero coupon security will encounter the bigger rate decay. In this manner, the shorter the opportunity to development, the more prominent the adjustment in the estimation of a security because of a given change in financing costs.
Answer:
$967.20
Explanation:
the YTM formula = {coupon + [(face value - present value)/time]} / [(face value + present value)/2]
to determine the coupon rate we fill the equation with the known factors:
0.065 = {coupon + [(1,000 - 1,050)/12]} / [(1,000 + 1,050)/2]
0.065 = (coupon - 41.67) / 1,025
66.625 = coupon - 4.167
coupon = 66.625 + 4.167 = $70.792
three years later, the YTM = 7.5%, what is the PV? Again we use the YTM formula:
0.0775 = {70.792 + [(1,000 - x)/6]} / [(1,000 + x)/2]
0.0775(500 + 0.5x) = 70.792 + 166.67 - 0.1667x
38.75 + 0.03875x = 237.462 - 0.1667x
0.20545x = 198.712
x = 198.712 / .20545
x = $967.20
Answer:
The project should be rejected because the costs are larger than the benefits.
Explanation:
EAW = equivalent annual worth = equivalent annual benefit - equivalent annual cost
equivalent annual cost = ($6,150,000 x 12%) + $115,000 = $853,000
equivalent annual benefit = $775,000
EAW = $775,000 - $853,000 = -$78,000
since the EAW is negative, then the project should not be carried out.
Another way to calculate this is by dividing benefits by costs. If the answer is 1 or higher, then the project should be accepted:
B/C = $775,000 / $853,000 = 0.9086 ≤ 1, project rejected
Answer:
If you invest $1,600 at the end of every year for four years at an interest rate of 14%, the balance of your investment in 4 years will be closest to:____________
$7,873.83
Explanation:
a) Data:
Annual investment = $1,600
Interest rate = 14%
Number of period = 4 years
b) Calculations, using an online finance calculator:
FV (Future Value) $7,873.83
PV (Present Value) $4,661.94
N (Number of Periods) 4.000
I/Y (Interest Rate) 14.000%
PMT (Periodic Payment) $1,600.00
Starting Investment $0.00
Total Principal $6,400.00
Total Interest $1,473.83
c) The investment of $1,600 at the end of every year for fours will grow to $7,873.83 with the principal amount of $6,400 ($1,600 * 4) plus compounded interest of $1,473.83.
Question Completion:
Sandersen Inc, sells minicomputers. During the past year, the company's sales were 3.00 million. The cost of its merchandise sold came to 2.00 million, and cash operating expenses were 400,000; depreciation expense was 100,000, and the firm paid 150,000 in interest on its bank loans. Also, the corporation paid 25,000 in the form of dividends to its own common stockholders.
Calculate the corporation tax liability.
The corporate tax rates are listed here:
15% $0-$50,000
25% $50,001-$75,000
34% $75,001-$10,000,000
35% over $10,000,000
Answer:
Sandersen Inc.
Computation of the Corporation's Tax Liability:
Taxable profit = $350,000
15% $0-$50,000 $7,500 ($50,000 * 15%)
25% $50,001-$75,000 6,250 ($25,000 * 25%)
34% $75,001-$10,000,000 93,500 ($275,000 * 34%)
35% over $10,000,000 0
Total Tax Liability = $107,250
Explanation:
Data and Calculations:
Sales Revenue $3,000,000
Cost of goods sold 2,000,000
Gross profit $1,000,000
Operating expenses 400,000
Depreciation expense 100,000
Operating profit $500,000
Interest expense 150,000
Profit before taxes $350,000
Income Taxes 107,250
Profit after taxes $242,750
Dividend 25,000
Retained Earnings $217,750
Answer:
Cycle Time = 10.19482 minute
Explanation:
From the question :
The Model E can be illustrated perfectly as shown below:
Process Time Required Predecessor Task Learning Rate
per Unit
A 9 82
B 12 A 86
C 18 B 81
D 9 C 90
E 12 D 80
F 17 E 88
G 14 F 83
H 12 G 85
I 8 H 82
Now For the minutes per week for each Process; we have :
Process Time Required Predecessor Learning Minutes
per Unit Task Rate (Week 16)
A 9 82 4.069096
B 12 A 86 6.564098
C 18 B 81 7.74841
D 9 C 90 5.9049
E 12 D 80 4.9152
F 17 E 88 10.19482
G 14 F 83 6.644165
H 12 G 85 6.264075
I 8 H 82 3.616974
The objective here is to determine the expected Cycle Time for Model E in Week 16
So, we can equally regard the Cycle Time = Bottleneck of Activity for Week 16.
Cycle Time = 10.19482 minute in as much as it is the the largest activity time for the week 16
Given that the demand per week is : = 247
The available time per week = 40 hours = 40 × 60 hours = 2400 minutes
Talk Time = Available Time Per Week/Demand Per Week
Talk Time = 2400/247
Talk Time = 9.716599
Thus; here the cycle time is greater than the talk time.
Kurt Lewin developed a change model that talks about creating a perception in the mind of the people that a change is needed,then taking adequate steps to bring about that change and then standardizing the new mindset .
Explanation:
Priya is exhibiting the First stage (Unfreezing)of Kurt Lewin change model.
There are three stages of Kurt Lewin Model:
In the Beginning of the video Priya is talking about bringing the change ,by asking the colleagues to imagine "a world where you never have to wait in line for your groceries again!"