BUSINESS COLLEGE

Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below: Real rate of return 4 %
Inflation premium 5
Risk premium 4
Total return 13 %
Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 15 years remaining until maturity. Use Appendix B and Appendix D.

Answers

Answer 1

Answer:

Answer:

"1143.817" is the appropriate answer.

Explanation:

According to the question:

Risk premium is:

= $4+3+4$

= $11 \ percent$

K = N

⇒ Bond Price = $\Sigma [(Coupon)/((1 + YTM)^k) ] + (Per \ value)/((1 + YTM)^N)$

$k = 1$

K = 15

On putting the values, we get

⇒ Bond Price = $\Sigma [(13* (1000)/(100) )/((1 + (11)/(100))^k) ] + (1000)/((1 + (11)/(100) )^(15))$

= $1143.817$

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A firm's dividend payments less any net new equity raised is referred to as the firm’s:a. operating cash flow.b. capital spending.c. net working capital.d. cash flow from creditors.e. cash flow to stockholders.
Listening skills are important for career success and organizational effectiveness. Considered one of the soft skills, listening skills allow you to improve the effectiveness of your communication with supervisors, colleagues, and customers. To become a more powerful listener, you can employ a variety of techniques. For example, if you’re having trouble focusing on a message, you could:_________A. take a breakB. become actively involvedC. change the subject

Climate change is expected to have a major impact on local weather patterns across the United States (and the world). Use a spatial equilibrium model for simple system of two cities to predict the effect of climate change on 1) A place where climate change lowers that amenity value of the local climate (call this place Miami) and 2) A place where climate change does not change the local amenity value (call this place Chicago). Which of the following best describes the prediction of your model?A. Real estate prices in Miami will rise, real estate prices in Chicago will fall.
B. Real estate prices in Miami will fall, real estate prices in Chicago will fall.
C. Real estate prices in Miami will rise, real estate prices in Chicago will rise.
D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.
E. None of the above.

Answers

Answer:

D. Real estate prices in Miami will fall, real estate prices in Chicago will rise.

Explanation:

Real estate prices in Miami will fall because according to the model, climate change will lower the amenity value of the local climate. This means that climate change will make the climate of Miami less desirable for potential residents, causing a drop in the price of the real estate of the city due to less demand.

Chicago on the other hand, will have the amenity level of its climate increased, and this will attract more potential residents who will drive up demand, causing Chicago's real estate prices to rise.

QS 20-26A Merchandising: Cash payments for merchandise LO P4 Garda purchased $610,000 of merchandise in August and expects to purchase $730,000 in September. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the following month. Compute cash payments for merchandise for September.

Answers

Answer:

The cash payments for September are $646000

Explanation:

The cash payments for merchandise are divided into to parts. The previous month's 70% payments and this month's 30% payments. Thus, the cash payments for the month of september will be 70% for AAugust purchases and 30% for september's purchases.

Thus the cash payments for merchandise will be,

Cash Payments = 0.7 * 610000 + 0.3 * 730000 = $646000

Answer:

=646000

Explanation:

30% pay in the month of purchase .

Note that th purchase made in September is $730,000 and 30% is due that month.

= 30% × 730,000

= 219,000

70% in the following month

For his category, payment be made in September should relate to purchases made in August, and $610,000 was purchased in August

=70%× $610,000

=427,000

Cash payment f r te September

= 219,000 + 427,000

=$646,000

Examples of physical capital include _______________________. Examples of human capital include ______________________________.A) knowledge one picks up through education and training; factories and computers
B) machines and factories; chairs and desks
C) knowledge one picks up through education and experience; factories and machines
D) machines and factories; knowledge one picks up through education and training

Answers

Answer:

D) machines and factories; knowledge one picks up through education and training

Explanation:

The physical capital is the capital that has the physical existence i.e. tangible. It could be seen, feel, or even touched. examples like plant, machinery etc

While on the other hand the human capital is intangible it only effects the production and the operations

Like - skills, knowledge, experience of a worker

Therefore the option D is correct

An unfavorable flexible budget variance for variable expenses would indicate that: Group of answer choices the expenses of the company were less than what they had planned. more units were actually sold than the company had originally budgeted to sell. actual variable expenses were higher than the flexible budget variable expenses. fewer units were actually sold than the company had anticipated.

Answers

Answer:

actual variable expenses were higher than the flexible budget variable expenses.

Explanation:

A flexible budget projects budget data (revenue and expenses) based on various or multiple levels of business activities, such as production sales.

Also, a flexible budget variance gives the difference between the output resulting from a flexible budget and the actual outputs.

A variance can either be favorable or unfavorable. An unfavorable flexible budget variance for variable expenses would indicate actual variable expenses were higher than the flexible budget variable expenses.

Hence, If a company's actual net income is lower than it's planned, the variance is said to be unfavorable. Thus, higher costs and expenses would result in a unfavorable variance while higher revenues result in a favorable variance.

A quantity variance and price variance can be used to measure the direct materials flexible budget variance.

Miguel works for an organization that collects books from donors and redistributes the books to schools to promote literacy and good reading habits. The company is funded by a government grant. Miguel works for a(n) ________.

Answers

i think the answer is a non profit organization

Production estimates for August for Jay Company are as follows: Estimated inventory (units), August 1 12,000
Desired inventory (units), August 31 9,000
Expected sales volume (units), August 75,000

For each unit produced, the direct materials requirements are as follows:
Material A ($5 per lb.) 3.0 lbs.
Material B ($18 per lb.) 0.5 lb.

The total direct materials purchases (assuming no beginning or ending inventory of material) of Materials A and B required for August production is ______.

a.$1,170,000 for A; $702,000 for B
b.$1,080,000 for A; $1,296,000 for B
c.$1,080,000 for A; $648,000 for B
d.$1,125,000 for A; $675,000 for B