An employee submits a request for her light to be repaired, and her request spends two years in committee process. Meanwhile, he
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Answer:
Bond Price = $149.1136446 million rounded off to $149.11
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 180 million * 0.08 * 6/12 = 7.2 million
Total periods (n) = 20 * 2 = 40
r or YTM = 0.1 * 6/12 = 0.05 or 5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 7.2 * [( 1 - (1+0.05)^-40) / 0.05] + 180 / (1+0.05)^40
Bond Price = $149.1136446 million rounded off to $149.11
The complete question is as follows:
Which one of these actions will increase the operating cycle? Assume all else held constant.
A. Increasing the payables period.
B. Decreasing the average inventory level.
C. Increasing the inventory turnover rate.
D. Decreasing the receivables turnover rate.
E Decreasing the payables period.
Answer : Which one of these actions will increase the operating cycle? Assume all else held constant.
A. Increasing the payables period.
B. Decreasing the average inventory level.
C. Increasing the inventory turnover rate.
D. Decreasing the receivables turnover rate.
E Decreasing the payables period.
Answer : D. Decreasing the receivables turnover rate.
We can calculate the operating cycle with the following formula :
Operating cycle = Days' sales of Inventory + Day Sales outstanding
In the formula above, (Net credit Sales /Average accounts receivable) is known as the accounts turnover rate. A decrease in rate means that a company is taking more time to collect its receivables from its customers than ever before. This, in turn will result in an increase in day sales outstanding and hence, increase the operating cycle.