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Ivenika [448]
2 years ago
10

You are a bond analyst working for a hedge fund. A bond you follow has face value 100, has a coupon rate of 5% (paid once a year

) and matures in 5 years. You are trying to find if there is any profitable trading strategy. You’ve done extensive research and have formed your opinions on future economic conditions

Business
1 answer:
nignag [31]2 years ago
7 0

Answer:

$101.22

Explanation:

Please see attachment

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Mr. Leghorn lives next door to Mr. Fudd. During hunting season, Mr. Fudd likes to shoot rabbits in his backyard, which activity
Dvinal [7]

Answer:

A. Mr. Fudd to pay Mr. Leghorn between $500 and $900 to continue hunting.

Explanation:

3 0
1 year ago
The Wester Corporation produces three products with the following costs and selling prices:
vitfil [10]

Answer:

Product A, then Product C and finally Product B

Explanation:

The unit profit  = Selling price per unit - Variable cost per unit - Fixed cost per unit

Unit Profit of product A = $21 - $11 - $5 = $5

Unit Profit of product B = $12 - $7 - $3 = $2

Unit Profit of product C = $32 - $18 - $9 = $5

The profit of each product in 1 machine hour = 1 hour/ Machine hours per unit * Unit Profit

Profit of Product A in 1 hour using machine = 1/0.2 * $5 = $25

Profit of Product B in 1 hour using machine = 1/0.5*$2 = $4

Profit of Product C in 1 hour using machine = 1/0.2* $5 = $25

Product A & Product C have same profit in 1 hour machine, then we have to consider Direct labor hours per unit which product A is 0.4 while product C is 0.7. It means Product C is more costly in direct labour than Product A.

In short, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is Product A, then Product C and finally Product B

8 0
2 years ago
Read 2 more answers
Following are forecasts of sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of December 31, 2017
andreev551 [17]

Answer:

Explanation:

Current Forecast Horizon Terminal

Year ($ millions) 2017 2018 2019 2020 2021 Sales ........................................................$2,785 $3,838 $5,289 $7,288 $10,043 $10,244 ....................................................330 455 627 864 1,190 1,214NOA .........................................................533 735 1,012 1,395 1,922 1,961ROPI Model

NOPAT – [NOABeg× rDiscount

factor [1 / (1 × ] ...................0.88496 0.78315 0.69305 0.61332 Present value of horizon ................342 416 507 619 present value of horizon ........$1,884 Present value of terminal ...............5,375 .........................................................533 Total firm value ........................................$7,792 Less ..............(462) Firm equity value .....................................8,254 Shares outstanding (millions) ..................103.3 Stock value per share ..............................$ 79.90

7 0
1 year ago
On February 1st, H&B Bank originated a loan for $50,000 at an interest rate of 7.2%. On March 15th, an interest payment of $
irina [24]

Answer:

d. Over time

Explanation:

The interest revenue will be recognize over time, regardless of the payment

If we only recognize revenue at payment due, if the bank client doesn't paid then we cannot recognize the accrued interest receivable.

We will recognize over time.

6 0
2 years ago
Jill bought a house 3 years ago and paid $175,000 for it and spent $7,000 in closing costs. Since, then she has made several imp
Anna71 [15]

Answer:

$88,000

Explanation:

Jill's original house value = $175,000 house cost + $7,000 closing costs + $75,000 improvements = $257,000

Jill's revenue from house sale = $375,000 selling price - $30,000 sale cost

                                                  = $345,000

Jill's capital gain = $345,000 sales revenue - $257,000 house original value

                           = $88,000

5 0
2 years ago
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