twenty years ago alley cat enterprises, inc. issued $1,000 bonds which will mature in 10 years. the bonds pay 9% interest semi-annually and are currently priced to provide a yield of 14%. what is the price must a new investor pay to purchase the bonds?
Answers
To calculate the price a new investor must pay to purchase the $1,000 bonds issued by Alley Cat Enterprises, Inc. twenty years ago, we need to use the formula for present value of a bond.
Firstly, we need to find out the number of semi-annual periods remaining until maturity, which is 20 years x 2 (since interest is paid semi-annually) = 40 semi-annual periods remaining.
Next, we need to calculate the semi-annual coupon payment, which is $1,000 x 9% / 2 = $45. Then, we need to determine the semi-annual discount rate, which is 14% / 2 = 7%.
Using these figures, we can calculate the present value of the bond as follows: PV = $45 x (1 - (1 + 7%)^-40) / (7%) + $1,000 x (1 + 7%)^-40
Thus, a new investor would need to pay the present value of the bond, which is $451.63, in order to purchase the $1,000 bond.
This is because the bond is currently priced to provide a yield of 14%, which is higher than the coupon rate of 9%, meaning the bond is selling at a discount to its face value.
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Related Questions
A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd. Comparative Income Statement This Year Last Year Sales $ 7,400,000 $ 5,624,000 Cost of goods sold 4,750,000 3,513,500 Gross margin 2,650,000 2,110,500 Selling and administrative expenses: Selling expenses 1,392,000 1,079,000 Administrative expenses 704,500 608,500 Total expenses 2,096,500 1,687,500 Net operating income 553,500 423,000 Interest expense 101,000 87,000 Net income before taxes $ 452,500 $ 336,000 Members of the company’s board of directors are surprised to see that net income increased by only $116,500 when sales increased by $1,776,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)
Answers
Answer:
Explanation:
In a common - size income statement , the percentages are calculated using the sales value as the base figure
This Year Last year
Sales 7,400,000 100 5,624,000 100
Cost of Goods 4,750,000 64.2 3,513,500 62.5
Gross Margin 2,650,000 35.8 2,110,500 37.5
Selling Exp. 1,392,000 18.8 1,079,000 19.2
Admin. Exp. 704,500 9,5 608,500 10.8
Total Exp. 2,096,500 28.3 1,687,500 30.0
Net Op. Inc. 553,500 7.5 423,000 7.5
Interest Exp. 101,000 1.4 87,000 1.6
NIBT 452,500 6.1 336,000 6.0
can someone help . i know I'm dumb:) x-5=7
Answers
Answer:
Hey Army
Nice to meet you:)
your answer is 12
as x-5=7
so x=7+5
x is 12
Stream life goes on and Dynamite. :)
Answer:
x=12
Explanation:
x-5=7
x-5+5=7+5
x=12
_______ is effective for sharing routine information
Answers
Information sharing is effective for sharing the routine information.
What is Information sharing?Information sharing describes the exchange of information between various businesses, individuals, and technological platforms. Widely dispersed networks, intranets, cross-platform interoperability, application porting, and IP protocol standardization have all dramatically accelerated the sharing of information globally. However, the majority of countries have laws that prohibit transmitting personal information without explicit authorization, regardless of how easy the data transfer itself may be. In the United States and Europe, it is against the law to share a person's personal information without that person's express agreement. Information sharing is expanding as more networks and organizations connect up and it becomes easier to share information online. There are numerous additional forms of information sharing that are not illegal.
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A firm that is committed to keeping manufacturing facilities in only the home country (and not developing multiple production sites in a variety of countries) can Multiple Choice not mitigate the effects of exchange rate changes. lessen the effect of exchange rate changes by pursuing a strategy of diversifying the markets in which the firm's products are sold. lessen the effect of exchange rate changes by pursuing a strategy of selling commodity products without product differentiation. pursue a strategy of increasing its products price elasticity of demand.
Answers
Answer:
lessen the effect of exchange rate changes by sourcing from where input costs are low
Explanation:
PLEASE HELP ASAP
_____ Is having the ability to roll with the punches
A. Communication
B. Leadership
C. Conflict resolution
D. Resilience
Answers
Answer:
I'm guessing the answer would be D
I don't actually know though and if it's wrong I'm sorry
when a person intentionally deceives another person or company for personal gain, this is referred to as
Answers
Arrange the steps of the decision-making process to solve a problem in the correct order.
Answers
Answer:
add, mutilply, subtract, and divide
Explanation:
i want to say that because we was taught that in school a special unique was taught to learn it
Answer:
see image for the exact answer
Explanation:
Angie’s List is a company launched in 1995 by Angela Hicks to provide online customer reviews for home repair and maintenance jobs. To collect such reviews initially, Angie, by herself, started going door-to-door in Columbus, Ohio, and asking people for a list of reliable service providers they would recommend to others. The company grew more and more every year after that. In 2016 for example it had expanded to serve more than 200 cities and 700 service categories, each with curated customer reviews. For access to such high-quality reviews, consumers had to pay a subscription fee. In 2016, Angie’s List had a three-tier pricing model, with consumers choosing between subscriptions costing $10, $30 and $60 per year. These options differed in the amount of information consumers had access to on the site. For example, with the $10 subscription, consumers could view home, car, and yard reviews for their local market (not national), while with the $30 subscription consumers could additionally access health and wellness reviews, as well as view national reviews. Finally, the premium subscription also offered consumers access to a dedicated priority support line, as well as a complaint resolution guarantee.
However, in 2016, many other online companies offered access to online reviews, the largest among which were Yelp, Tripadvisor, and Taskrabbit. These services relied on advertising for revenue, with consumers getting access to online reviews for free. These reviews were posted voluntarily by previous customers and included a star rating and a text for each review.
Faced with declining membership rates as consumers substituted to obtaining reviews from other free sources, in 2016 Angie’s List had a choice to make: introduce a free tier to their paid subscription model or continue with the subscription model they had used since inception.
What should Angie’s List goals be in designing the free pricing tier? List at least two goals.
Does offering a free tier make sense? List at least two advantages and two disadvantages for Angie’s List if it were to offer a free tier and then make your recommendation.
Are there alternative strategies that Angie’s List could implement apart from adding a free pricing tier that will increase profits and value for consumers? If yes, defend your proposition. If no, explain why.
Answers
Angie's List could include: 1) Expanding their service 2) Improving user experience through enhanced website functionality and personalization.
Offering a free tier does make sense for Angie's List. One advantage of offering a free tier is that it can increase brand awareness and attract new users who might not have been willing to pay for a subscription. This can lead to an increase in reviews and make their platform more valuable to consumers.
Based on these advantages and disadvantages, it is recommended that Angie's List offer a free tier with limited access to reviews. This would allow them to attract new users and differentiate themselves from other free review platforms, while minimizing the risk of cannibalizing their paid subscription revenue or lowering the quality of reviews.
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The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.a. Trueb. False
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Human capital is the sum of an individual's talents, knowledge, or other intangible assets that can be used to generate economic value for the individual, their employer, or their community.
Human capital is the knowledge, skills, and health they invest in and accumulate throughout the course of their lives.
An economy's human capital can help it grow. Improvements in participation rates, social well-being, and productivity result from increases in human capital in areas like research, education, and management, all of which support economic growth.
The expansion of human capital boosts output levels and encourages economic growth by raising GDP. Knowledgeable and competent workers can make better use of available resources.
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assume that the marginal utilities for the first three units of a good consumed are 200, 150, and 125, respectively. the total utility when two units are consumed is:
Answers
The total utility when two units are consumed is 425. This is because the total utility is calculated by adding the marginal utilities of each of the units consumed.
In this case, the total utility would be equal to the sum of the marginal utilities of the first two units consumed, which would be 200 + 150 = 350. In addition, the marginal utility of the third unit consumed, which would be 125, must be added.
For example, suppose a person buys two cans of soda. The person obtains a utility of 200 when buying the first can of soda and a utility of 150 when buying the second can of soda. In addition, he would earn a marginal utility of 125 by buying the third can of soda. Then, the total utility that the person obtains from buying two cans of soda would be 200 + 150 + 125 = 425.
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HURRYY
Borrowing money to pursue an advanced degree makes sense if
a. You can earn a scholarship to pay for your educational costs
b. Your future earnings potential outweighs the debt you may accrue
C. You already have the financing to pay out of pocket
d. Your employer is willing to pay for your tuition
Answers
Answer:
b. Your future earnings potential outweighs the debt you may accrue
Explanation:
Consider taking the loan to finance the advanced degree as an investment project. The project can is beneficial to the owner if the projected future income outweighs the cost of investments. A project makes sense if it generates profits.
Borrowing money to pay for the advanced degree will make sense if potential future earnings exceed the debts incurred.
Answer:
b
Explanation:
To calculate the number of montly payments required to pay off a loan or meet an investment goal, use the _______ function.
Answers
To calculate the number of monthly payments required to pay off a loan or meet an investment goal, use the nper function.
In finance, lending is the lending of money by one or more individuals, organizations, or other entities to other individuals and organizations, etc. The beneficiary incurs a debt and usually has to pay interest on that debt until that debt is also repaid. to repay the principal borrowed.
The promissory note will typically state, among other things, the principal amount of the loan, the interest rate charged by the lender, and the date of repayment. A loan involves reallocation of assets in question over a period of time, between the lender and the borrower.
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HELPPP
As technology continues to become a bigger part of our lives, it is also becoming a big part of the restaurant world with some fast food restaurants even using large touch screens where customers can place their orders, pay at the machine, and then wait for their order number to be called. What are these high-tech machines called?
A. technological food service
B. self-serve food ordering
C. non-restrictive food ordering
D. automated food ordering system
Answers
Answer: self-serve food ordering
Explanation:
Self-service kiosks or self-ordering kiosks are customer-facing devices that allow customers to place orders and make payments without the assistance of a cashier.
Rogers Communications offers live, online chat options for customers lookng to solve a concern of liwe a question. These agents can hrowse customers' accounts and suggest products and services that would serve the specific needs of the custome. This beneff that the customer geis from this experience ls?
Answers
The benefit that the customer gets from live, online chat options offered by Rogers Communications is personalized offerings. The correct option is C.
Rogers Communications' live, online chat options provide customers with the benefit of personalized offerings. Through these chat sessions, trained agents have the ability to browse customers' accounts, gaining insights into their specific needs and preferences. This enables the agents to suggest products and services that are specifically tailored to meet those individual requirements.
By offering personalized offerings and recommendations, customers are more likely to find solutions that address their unique concerns and provide them with the best value. This level of customization enhances the browsing experience by saving customers time and effort in searching for suitable options, ultimately resulting in a more satisfying and efficient customer service experience. Therefore, the correct option is C.
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Your question seems incomplete, but I suppose the question was:
"Rogers Communications offers live, online chat options for customers looking to solve a concern or have a question. These agents can browse customers' accounts and suggest products and services that would serve the specific needs of the customer. This benefit that the customer gets from this experience is?
A) enhanced browsing
B) entertainment value
C) personalized offerings
D) deeper and broader selection
E) personalized customer service
Concose Park Department is considering a new capital investment. The following information is available on the investment: The cost of the machine will be $330,000. The annual cost savings if the new machine is acquired will be $85,000. The machine will have a 5-year life, at which time the terminal disposal value is expected to be $32,000. Concose Park Department is assuming no tax consequences. If Concose Park Department has a required rate of return of 11%, what is the present value of the project?
Answers
The present value of the project is $30,158.93.
Calculate the net cash flows for each year:
Year 1: Cost savings - Cost of the machine = $85,000 - $330,000 = -$245,000
Year 2: Cost savings = $85,000
Year 3: Cost savings = $85,000
Year 4: Cost savings = $85,000
Year 5: Cost savings + Terminal disposal value = $85,000 + $32,000 = $117,000
PV = Cash Flow / (1 + Required Rate of Return\()^n\)
Where n is the number of years from the present.
Calculating the present value for each cash flow:
PV Year 1 = -$245,000 / (1 + 0.11\()^1\) = -$220,720.72
PV Year 2 = $85,000 / (1 + 0.11\()^2\)= $70,370.37
PV Year 3 = $85,000 / (1 + 0.11\()^3\) = $59,330.95
PV Year 4 = $85,000 / (1 + 0.11\()^4\) = $49,858.41
PV Year 5 = $117,000 / (1 + 0.11\()^5\) = $71,318.92
Present Value = PV Year 1 + PV Year 2 + PV Year 3 + PV Year 4 + PV Year 5
Present Value = -$220,720.72 + $70,370.37 + $59,330.95 + $49,858.41 + $71,318.92
Present Value = $30,158.93
Cash flows refer to the movement of money into and out of a business or individual's financial accounts over a specific period. It represents the actual cash generated or spent during that time frame and is a crucial indicator of financial health. Cash flows are classified into three main categories: operating, investing, and financing activities.
Operating cash flows pertain to the core business activities, such as sales, expenses, and taxes. Positive operating cash flows indicate that a company's operations are generating more cash than it is using. Investing cash flows involve the buying or selling of long-term assets, such as property, equipment, or investments. Positive investing cash flows suggest that a company is making profitable investments or selling assets at a gain.
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How many manufacturing companies are in the north Georgia area
Answers
Answer:in addition to being a right-to-work state, with low unionization rates (2.5%), our quality workforce is one reason why companies in automotive, machinery, and plastics industries are experiencing high job growth. Whether you are looking for engineering talent to further innovation in products or processes, or a skilled labor force to work on the plant floor, Georgia has the existing and future workforce to fulfill your hiring needs. Georgia is home to many companies with a history of innovation that has impacted their.
what do sellers of a product do when they expect the price of the goods they sell to increase dramatically in the near future?
Answers
Answer:
Store the goods until prices rises.
Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.54 percent, a par value of $1,000 per bond, matures in 4 years, has a total face value of $3.8 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.10 percent, a par value of $2,000 per bond, matures in 23 years, has a total face value of $8.1 million, and is quoted at 95 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 39 percent. What is the firm's weighted average aftertax cost of debt
Answers
Answer:
3.20%
Explanation:
The firm's weighted average aftertax cost of debt can be determined by first of all determining the before-tax cost of each debt.
Using a financial calculator, the before-tax costs of debt are ascertained as follows:
Bond 1:
N=8(number of semiannual coupons in 4 years)
PMT=17.70 (semiannual coupon=face value*coupon rate/2=$1,000*3.54%/2=$17.70)
PV=-1030(current price=$1000*103%=$1030)
FV=1000(the face value is $1000)
CPT
I/Y=1.37%(the semannual yield, annual yield=1.37%*2=2.74%)
after-tax cost of first debt=2.74%*(1-39%)=1.67%
Bond 2:
N=46(number of semiannual coupons in 23 years)
PMT=30.50 (semiannual coupon=face value*coupon rate/2=$1,000*6.10%/2=$30.50)
PV=-950(current price=$1000*95%=$950)
FV=1000(the face value is $1000)
CPT
I/Y=3.26%%(the semannual yield, annual yield=3.26%%*2=6.52%)
after-tax cost of second debt=6.52%*(1-39%)=3.98%
market value of first debt=$3.8 million*103%=$3,914,000
market value of second debt=$8.1 million*95%=$7,695,000
total market value of debts=$3,914,000+$7,695,000=$11,609,000
firm's weighted average aftertax cost of debt=(1.67%*$3,914,000/$11,609,000)+(3.98%*$7,695,000/$11,609,000)
firm's weighted average aftertax cost of debt=3.20%
The market clearing price occurs at the ________ of the market demand curve and the market supply curve. It is also called the _______ price, the price from which there is no tendency to change in demand or supply
Answers
Answer:
intersection
equilibrium
Explanation:
In the case when the market clearing price arise at the time when the demand curve of the market and the demand curve of the supply intersected with each other. This is we called as the equilibrium price where there is no tendency to varies the demand or supply
Hence, the same is to be relevant
Terry took out a mortgage loan for $60,000 at an interest rate of 11% for 25 years. If Terry had not had a bankruptcy
on her credit report, her payments could have been $424.07 per month. How much is Terry paying in additional
interest over the life of the loan?
a. $49.200.00
b. $2,272.36
c. $163.00
d. $56,809.00
Answers
Answer: A. 49,200
Explanation: Took test on Edge
Based on the fact that Terry had a bankruptcy, the additional interest she will pay over the life of the loan is a. $49,000
What is the current monthly amount Terry pays?This can be found by the formula:
Loan amount = Amount paid x ( 1 - ( 1 + rate) ^-number of periods) / rate
Rate is: Number of periods
= 11% / 12 months = 25 x 12
= 11/12% = 300 months
Amount is:
60,000 = Amount x ( 1 - ( 1 + 11/12%)⁻³⁰⁰) / 11/12%
60,000 = Amount x 102.029043745
Amount = 60,000 / 102.029043745
= $588.07
What is the additional interest Terry will pay?= (Amount Terry pays now - Amount Terry would have paid) x 300 months
= (588.07 - 424.07) x 300
= $49,200
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One way that technology improves production is by helping manufacturers avoid creating waste by reducing the amount of packaging they use. This is referred to as ______.
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The use of technology to reduce waste by reducing the packaging used by companies is known as Precycling.
What is precycling?Is a method of reducing waste. Works by targeting those things that might cause waste in the first place.Precycling means that instead of waiting for something to become waste, you reduce it before it gets a chance to. This is what reducing packaging does because that could become waste.
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A country’s potential nationalization of companies in the oil industry would represent a(n) _____ risk
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I need help on these two. 15 pts. Brainliest...
Answers
Macroeconomics is the study of economics on a very small scale
Answers
April has joined a team with members from the sales, customer service, and
shipping and receiving departments. Which term best describes the team
April joined?
O A. Cross-functional team
B. Problem-solving team
O C. Self-managing team
D. Work team
Answers
Answer:cross-functional team
Explanation:
A sales associate relies on a(n) ________ to confirm any special packaging and promotions related to a purchase.
Answers
Based on marketing strategies, a sales associate relies on a(n) UPC tag to confirm any special packaging and promotions related to a purchase.
A UPC tag is a Universal Product Code tag that specifies the item's producer, a description of the item, information about special packaging, and special promotions.
A Universal Product Code is often referred to as a bar code. And it usually comes in 12 or 13 digits.
UPC tag is generally used for tracking trade items in the market.
Hence, in this case, it is concluded that the correct answer is UPC Tag.
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Total output is increasing but marginal product of labor is decreasing. This is an example of...
Answers
what is Revenue ???
Answers
Answer:
Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement. Income, or net income, is a company's total earnings or profit.
Explanation:
Not my answer
Answer:
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Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold.
when should you use the "Reply All" function when replying to an email?
Answers
Answer:
"when should you use the 'Reply All' function when replying to an email?"
Explanation:
In group chats and zoom invites, any invites really.
Answer:
Whenever all the recipients of a message need to read your response.
you have a credit card and the average balance on that card, year after year, is $4,000. The credit card company charges 21% annual intrest on your average balance, how much extra money would you have to invest each year if you weren’t paying intrest on that credit card debt?
A. $117
B. $840
C. $273
D. $791
Answers
The amount of $840 will be extra money one will have to invest each year if you are not paying interest on that credit card debt.
What is a credit service?This is a loan service provided by credit firm to an individual, business etc which is expected to be repaid with interest.
Extra money = $4,000 * 21%
Extra money = $840
Therefore, the Option B is correct.
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