Answer:
a) YTM = 9.8%
b) realized compound yield is 9.9%
Explanation:
a) PMT = 80
par value FV = 1000
coupon rate = 8%
curent price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) = 
= 
= 9.8%
b) r2 = 10% = 100%+10%=1.1
r3 = 12% = 100%+12%=1.12
Realized compound yield:First, find the future value (FV. of reinvested coupons and principal
FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16
let a be the rate that makes the future value $1268.16
953.1(1+y)³ =$1268.16
(1+y)³=1.33
1+y=1.099
y = 0.099 = 9.9%
Answer:
The value of this share of preferred stock is $44.44
Explanation:
Dividend = $10
Yield= 22.5% = 0.225
Value of share of preferred stock = Dividend / Preferred stock yield
=$10/0.2250
=$44.44444
=$44.44
Answer:
$1,275,000
Explanation:
The computation of the contribution margin is shown below:
As we know that
Contribution margin = Sales - variable cost
or
Selling price per unit - variable cost per unit
And, the direct material per unit, direct labor per unit, and the Variable overhead per unit are variable cost
So, if 50,000 units are sold, the contribution margin per unit is
= 50,000 × ($33 - $1.50 - $2.50 - $3.50)
= $1,275,000
Answer:
The answer and procedures of the exercise are attached in a microsof excel document.
Explanation:
After a research on internet I found the exercise and the questions better explained. The correct formulation is attached as an image. Please let me know that we are looking to the same exercise.
Please consider the data provided by you. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The amount of Compensation expense to Year 1 is $153,333.
Explanation:
Stock options granted 92000
X Fair value on date of grant 5
Total compensation expense 460000
Years 3
Compensation expense per year 1 53333
Therefore, The amount of Compensation expense to Year 1 is $153,333.
