BUSINESS COLLEGE

You are considering buying a 30-year U.S. Treasury bond but are nervous about the effect on bond price if the yield to maturity on the bond increases. The bond has a 3% coupon rate and pays coupons semi-annually. The duration is 18 years. Suppose that interest rates on this bond rise by 1.8%. Calculate the corresponding percentage change in the price of the bond using the approximation method based on bond duration. Give your answer in percent to one decimal place. If the price decreases, then include a minus sign; if the price increases, do not include any sign. Do not type the % symbol.

Answers

Answer 1
Answer:

Answer:

The corresponding percentage change in the price of the bond using the approximation method based on the bond duration is   -3.24%

Explanation:

In this question, we are to calculate the corresponding percentage change in the price of the bonds using the approximation method based on the bond duration.

Mathematically, approximate change in bond price = -(Duration × Change in yield)

From the question, we identify that the duration is 18 years while the change in yield is 1.8% = 1.8/100 = 0.18

We plug this in the equation above;

The approximate change in bond price is thus; -(18 × 0.18) = -3.24%

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Sleepy Company, a 70%-owned subsidiary of Pickle Corporation, reported net income of $600,000 and paid dividends totaling $225,000 during Year 3. Year 3 amortization of differences between current fair values and carrying amounts of Sleepy's identifiable net assets at the date of the business combination was $112,500. The noncontrolling interest in consolidated net income of Sleepy for Year 3 was :a. $146,250.b. $33,750.c. $67,500.d. $180,000.
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $ 13,180 $ 15,290 $ 12,110 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,900. The expected January 31 Accounts Payable balance is:______________.
The adjusted trial balance of Warbocks Corporation at December 31, 2017 includes the following accounts: Retained Earnings $12,600; Dividends $5,000; Service Revenue $30,000; Salaries and Wages Expense $15,000; Insurance Expense $2,000; Rent Expense $4,500; Supplies Expense $500; and Depreciation Expense $1,000. Prepare a retained earnings statement for the year.
Kent Enterprises purchased a truck for $60,000 on January 1 of its first year. The company uses the units-of-activity method and it estimates that the truck’s useful life will be 100,000 miles. The truck will have an estimated salvage value of $10,000. The company drives the truck 25,000 miles in the first year and drives it 20,000 miles in the second year. How much accumulated depreciation will be reported on the company’s balance sheet as of the end of the second year?
Mila is helping to set performance targets for her company, Urban Supply. The target of increasing the company's online customer satisfaction rate by 1% in the next quarter is an example of a performance target focused on the customer perspective of the balance scorecard.a. trueb. false

Relate systems management theory

Answers

Explanation:

Management theories are concepts surrounding recommended management strategies, which may include tools such as frameworks and guidelines that can be implemented in modern organizations. Generally, professionals will not rely solely on one management theory alone, but instead, introduce several concepts from different management theories that best suit their workforce and company culture.

The character of a company's corporate culture is a product of:A. the shared values and core business principles and beliefs that management preaches and practices.B. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions.C. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment.D. the work practices and behaviors that define "how we do things around here."E. All of these.

Answers

Answer: Option E

               

Explanation: Corporate culture refers to the values and beliefs of an organisation that originates from its several different factors like strategy, customers and investors etc. The corporate culture of an organisation affects the attitude and behavior of all its members.

It sometimes works as a guide when the organisation faces an ethical dilemma. In a healthy corporate culture every employee in the organisation is treated with respect regardless of his or her status.

Thus, from the above we can conclude that the correct option is E.

Tyell Corp. is a financial consulting firm. The firm has a varied client base. It also hires employees from various ethnicities and backgrounds. As this diversified workforce can give way to problems, the company invests time in increasing its employees' knowledge regarding one another's cultures. The employees are taught to question stereotypes and how to change their personal assumptions about other people. In the given scenario, Tyell Corp. uses _____.a. supervisory training
b. readiness-based diversity training
c. awareness training
d. skills-based diversity training

Answers

Answer:

In the given scenario, Tyell Corp. uses

b. readiness-based diversity training

Explanation:

Diversity Training:

A type of training in which the audience are trained to accept and understand the diversity of traits and cultural backgrounds of people.

  • In this scenario, Tyell Corp. teaches its diversified employees to ask questions stereotypes and change their personal opinion about each other. As this training is encouraging to understand the diversification so the option a and c are not valid.
  • The options b is valid as the consulting firm is motivating its employee to ask the questions and understand other people that is preparing the employee to accept the differences. So, they can work in harmony for the progress of the firm
  • The option d is not valid in this scenario, as this training is focusing on readiness of the employees to accept the cultural differences but not no skills.

Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.On the basis of the given information

a. Gamma should export both tea and pots to Sigma
b. Sigma should export tea to Gamma and Gamma should export pots to Sigma
c. Gamma should export tea to Sigma and Sigma should export pots to Gamma
d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots

Answers

Answer:

The correct answer is "C"

Explanation:

Production prospects Frontier utilizes the idea of chance expense of creation. It is the measure of other great relinquished or not created so as to deliver a specific decent.  

For Gamma, the opportunity cost of delivering one unit of tea is 120/120 = 1 unit of pot. For Sigma, this open door cost is 120/40 = 3 units of pot. It shows that the open door cost of delivering tea is lower in Gamma. Consequently Gamma ought to represent considerable authority in the creation of tea and should trade it. Sigma ought to represent considerable authority underway of pots and fare it.

Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $660,000 payroll for 8,600 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 310,000 # of setups 310 setups Materials handling 115,800 # of barrels 9,650 barrels Quality control 1,290,000 # of inspections 3,000 inspections Other overhead cost 1,075,000 # of machine hours 21,500 machine hours Total overhead $ 2,790,800 A current product order has the following requirements: Machine setups 28 setups Materials handling 720 barrels Quality inspections 90 inspections Machine hours 1,700 machine hours Direct labor hour 564 hours Using ABC, how much total overhead is assigned to the order?

Answers

Answer:

Total overheads assigned to order = $203,621.36

Explanation:

As for the information provided:

Payroll = (660,000)/(8,600) = = $76.74 per hour

Setups = (310,000)/(310) = $1,000 per setup

Material Handling = (115,800)/(9,650) = $12 per barrel.

Quality Control = (1,290,000)/(3,000) = $430 per inspection.

Other overhead = (1,075,000)/(21,500) = = $50 per machine hour.

Details of current product requirement: And the related expense shall be :

28 setups = 28 * $1,000 = $28,000

720 barrels = 720 * $12 = $8,640

90 inspections = 90 * $430 = $38,700

1,700 machine hours = 1,700 * $50 = $85,000

564 labor hours = 564 * $76.74 = $43,281.36

Total overheads assigned to order = $203,621.36

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporation if net income after corporate tax is distributed to him as a dividend and his marginal tax rate on ordinary income is 37%?

Answers

Answer:

\$ 117,937.50

Explanation:

Corporate level tax on $200,000 is $61,250

Cash(After Corporate tax)= \$ 200,000 -\$ 61,250=\$138,750

Individual tax on $138,750(15%)=0.15*138750=\$ 20812.5

Hence, net after tax cashflow :

\$ 138,750-\$20,812.5\n=\$117,937.50
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