Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
The price of the bonds issued by Interlink Communications on December 31, 2021, is $87,591,240. This is calculated by adding the present value of the annual interest payments and the present value of the principal, both discounted at the market rate of 6%.
Interlink Communications issued 5% of the stated rate bonds with a face amount of $113 million on December 31, 2021. The bonds matured on December 31, 2051. To calculate the price of the bonds, we need to calculate the present value (PV) of the interest (5% x $113 million) and the principal ($113 million), both discounted at the market rate of interest (6%).
The bonds pay $5.65 million (5% x $113 million) annually. The PV of these payments is $74,454,240 based on the table given where n=30 and i=6%. The PV of the principal, the $113 million due at the end of the bond's term, is $13,137,000, again using the table values where n=30 and i=6%. So, the price of the bonds on December 31, 2021 is the sum of the PV of the interest and the PV of the principal, which is $87,591,240.
#SPJ3
decentralize decision making and facilitate teamwork.
detect opportunities and increase innovation.
adapt to change and uncertainty.
provide performance feedback.
Decentralize decision making and facilitate teamwork. The correct answer is option (a).
Any procedure in which decision-making power is dispersed across a broader group is considered to be decentralised decision-making. Additionally, it suggests that lower level bureaucrats, executives, and employees are given more power. This may happen in any institution, regardless of size, from a business to a political body.
On the other hand, decentralising decision-making shortens wait times, enhances the flow and throughput of product development, and makes it possible for quicker feedback and more creative solutions. Higher levels of autonomy are a further, noticeable advantage. In general, it is ideal to make decisions at a decentralised level when they are frequent and time-sensitive. A decision should be centralised if it is rare, not time-sensitive, and includes economies of scale.
To know more about Decision making, visit:
#SPJ4
A.
The bulk of Airline A's profits came from other income which included the sale of some of its fleet.
B.
In anticipation of increased demand, Airline A has set aside funds for buying medium sized jets for short-haul routes.
C.
A look at the stock price and the balance sheet of Airline A reveals that the company's stock is trading below its book value.
D.
Airline A plans to reduce flights to sectors where the traffic volume is low.
E.
The company's cost per passenger mile traveled is different from a typical cost per mile traveled in the commuter rail industry.
Answer:
A) The bulk of Airline A's profits came from other income which included the sale of some of its fleet.
Explanation:
Investment in favor of Airline A would severely be hindered if it is found out that the bulk of Airline A's profits came from other income which included the sale of some of its fleet.
This is because it would mean that Airline A is unable to keep up with its costs and thus is divesting its operations. Divesting is never a good sign for a firm looking to gain advantage in the future. Furthermore this explains why there was a sudden shift from loss making in the previous years to profits in the current year. A detailed inspection would be needed to eliminate uncertainty and as such any investment decisions in favor of airline A would not be justified.
Option B, C and D is efficient management and would make Airline A more lucrative for investment as it would mean management is eagerly looking to cut inefficient operations.
Option E would require more information to weaken the argument.
Hope that helps.
Demand of ice-cream must increase in the summer.
There is no free lunch.
One must give up something in order to obtain something else.
Answer:
D
Explanation:
A trade-off occurs when we make a choice that benefits us, but to acquire that benefit, we also have to give up something of value. Further explore the definition of trade-offs in economics, understand the concepts of opportunity costs and sacrifices, and recognize the importance of making trade-offs in a strategic manner that uses resources wisely.
Answer:
The journal entry to record the dividend declaration is:
June 2, 202x, cash dividends are declared
Dr Retained earnings 4,800
Cr Dividends payable 4,800
The journal entry to record the payment of the dividend would be:
Dr Dividends payable 4,800
Cr Cash 4,800
When we calculate dividends, only outstanding stocks are included in the distribution: total outstanding stocks = issued stocks - treasury stocks = 1,000 - 200 = 800
Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.
Explanation:
There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price
Answer: The answer is as follows:
Explanation:
Given that,
Cash = $16,000
Inventory = $16,000 fair value (inside basis $8,000)
Accounts receivable with a fair value = $8,000 (inside basis of $12,000) to Daniela
Daniela's basis = $20,000
JRD basis = cash + inventory + accounts receivables
= 16,000 + 2,000 + 2,000
=$20,000
Out of $20,000,
Pending amount for inventory and accounts receivable allocation:
= JRD basis - Cash basis
= $20,000 - $16,000
= $4,000
This pending amount is allocated equally among the inventory and accounts receivable i.e, $2,000 is allocated to inventory and $2,000 is allocated to accounts receivable.
Daniela's basis in the distributed inventory is $2,000, and her basis in the accounts receivable is $3,000.
Daniela's basis in the distributed inventory and accounts receivable can be calculated using the proportionate distribution method. To determine the basis in the distributed inventory, we calculate the inside basis of $8,000 multiplied by Daniela's partnership interest of 25%, which equals $2,000. As for the accounts receivable, we calculate the inside basis of $12,000 multiplied by Daniela's partnership interest of 25%, which equals $3,000.
#SPJ3