Answer:
The Managing director wants him to reduce the production cost through the manipulation of figures. This is an unethical practice in Accounting.
Explanation:
The declaration of higher profit is a function of cost minimization. Since Mathew feels pressured to make unethical accounting decision, it implies that his CEO wants him to manipulate cost figures fraudulently so as to declare a higher profit figure.
Answer:
(E) Gianni, because Gianni did not sign any agreement and he is the party being charged
Explanation:
In the above scenario, Giani is correct because unless the contracts are in writing and signed by both the parties, it is hard to go after the paying party. It remains invalid as soon as either party decides to step back.
Therefore, Dolton would have nothing to show against Giani without a written proof of the contract made.
Answer:
A) A bond's current yield must always be either equal to its yield to maturity or between its yield to maturity and its coupon rate.
Explanation:
the yield to maturity = current yield +/- capital gains yield
current yield = yield to maturity +/- capital gains yield
the capital gains yield is positive or negative depending if the bond was sold at a premium or at a discount which results in a coupon rate being either higher or lower than the yield to maturity.
so the current yield must always be within a range between yield to maturity and coupon rate
Answer:
YTM = 2.84%
Explanation:
We know,
YTM = 
Here,
I = Coupon payment = It is calculated by multiplying the coupon interest rate by the par value of the bond.
M = Bond's par value.
Vo = Bond's current market price.
n = Number of years or periods.
Given,
n = 18
I = Semiannual coupon bonds rate = $1,000*7%*(1/2) = $70 ÷ 2 = $35
M = Par value of a bond = $1,000
Vo = Market value of the bond = $1,102.50
Therefore,
YTM = 
or, YTM = 
or, YTM = $29.32 ÷ $1,034.08
or, YTM = 0.0284
Therefore, YTM = 2.84%
P1 = $27
P0 = $23
To solve:
Capital gain rate = (P1 - P0)/P0
Capital gain rate = ($27.00 - $23.00)/$23.00
Capital gain rate = $4/$23
Capital gain rate = 0.1739
Capital gain rate = (0.1739)(100)
Capital gain rate = 17.39%
