<u>Solution and explanation:</u>
<u>Given data:
</u>
Ask price: 98.4062, bid price: 98.2812, par value of the bond: $10,000
<u>The following formula is used in order to calculate the actual value of the bond
</u>
The ask price will be used while calculating the actual value of the bond and the par value of the bond will be used
Ask price will be multiplied with par value of the bond and divided by 100
= $9840.62
Therefore, the par value as per the above calculation is $9840.62
Answer:
Carry-back should be reported as a benefit
Explanation:
Tanner, Inc. is a company which has suffered a loss in 2018, and they have planned to use carry-back provisions because they generated profit. It is compulsory to report the provision in the 2018 financial statement. Overall, tanner, Inc. must report carry-back profits as a benefit in 2018 financial statement, because of the loss they received in 2018.
Answer:
Option (e) is correct.
Explanation:
Given that,
Beta = 0.88
Expected dividend growth rate = 4.00% per year
T-bond rate = 5.25% (The treasury bonds are always the risk free rate)
Average annual future return on the market = 14.75%
Required rate of return:
= Risk free rate + Beta × (Market rate - Risk free rate)
= 5.25 + 0.88 × (14.75 - 5.25)
= 5.25 + 0.88 × 9.5
= 5.25 + 8.36
= 13.61%
Answer: 130 days
Explanation:
The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.
It is calculated with the following formula,
= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding
Where,
Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales
Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,
Days of Payables Outstanding is the time it took the company to pay for the goods it bought
Plugging in the figures we have,
= 100 + 60 - 30
= 130 days
The firm's cash conversion cycle is 130 days.
B would be the correct answer i believe
