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Novay_Z [31]
1 year ago
14

Grossnickle corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. today,

the market interest rate on these bonds is 5.5%. what is the current price of the bonds, given that they now have 19 years to maturity?
Business
1 answer:
Dima020 [189]1 year ago
5 0
Bond valuation: 
<span>Par value = Maturity value = FV = $1,000 </span>
<span>Coupon rate = 7.5% </span>
<span>Years to maturity = N = 19 </span>
<span>Required rate = I/YR = 5.5% </span>
<span>(Coupon rate)(Par value) = PMT = $75 </span>
<span>PV = $1,232.15</span>
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Pabon Corporation makes one product. Budgeted unit sales for August and September are 11,100 and 12,600 units, respectively. The
AleksAgata [21]

Answer:

$555,750

Explanation:

First we need to calculate the units produced in the month of August.

We know that the opening inventory of finished goods is equal to 40% of that month's sale.

  • The Opening inventory of August will be: 11100 * 0.4 = 4440
  • Units produced in august relating to August sales will be 11100 - 4440 = 6660
  • Units produced in August relating to September's sales will be 12600 * 0.4 = 5040
  • Total units produced in August = 6660 + 5040 = 11700 units
  • labour hours required for August = 11700 * 2.5 = 29250 direct labor hours
  • So, Direct labor Cost = 29250 * 19 = 555750

7 0
2 years ago
Select the correct answer from each drop-down menu. Read the passage. What should Milo do? What customer service skills would he
ad-work [718]

Answer:

a. Milo should disclose all the information about the product

b. Milo is showing honesty about what the customers should expect about the product

Explanation:

a.

A customer service agent is someone who offers assistance to it's customers on behalf of the company. The agent covers issues like; answers questions about the product and guides the customers on how to use the product. Customer services has become more necessary in the recent past due to advancement in communication technology and high competition. Good customer service ensures that a company can retain and get more customers to purchase it's products. When more customers purchase a product, the sales also increase significantly. More sales translates to increased profits, which is the goal of most business organizations. Some of the customer service skills that can assist a company to achieve increased sales are;

1. Communication skills: a customer service has to be able to communicate clearly to the customers to ensure effective transfer of product information.

2. Good listening skills: they need to listen attentively and play keen attention to details to ensure that all the customer's needs are met. This enhances trust.

3. Knowledge about the product: a good agent has to have extensive knowledge about the product since customers will be expecting information about the product from the agents. An agent who seems to have little information about the product will definitely lose the customer's trust.

4. Honesty: the agent has to give the customer all the information about their product even if they will lose the customer. One needs to understand that lying to the customer in most cases takes the customers trust away. But being truthful about the product, might make one lose a customer at that moment but at least the customer will have some level of trust since the agent was honest.

In our case, Milo should disclose all the information about the cruise ship including the extra charges for bottled water. The couple might decline the offer on account of it being above their price range, but they will have some trust in Milo. This trust could make the couple interested in the cruise ship at another time when they can afford it. However, if Milo decides to keep the information away from them, the customers will feel cheated and will never trust Milo again. In this way, Milo loses the customers for life as opposed to losing the customers only once.

b.

In this case, Milo is showing honesty. By disclosing all the information about the product, Milo is being honest about what the product is going to offer and it's associated price. Honesty fosters trust in customers. When a customer fully trusts you, they would rather purchase your product at a slightly higher price than settle for a product whose qualities is not guaranteed.

8 0
2 years ago
On January 1, 2015 Outback Subaru Limited, a Subaru dealership in Alice Springs, sold 2 cars to the town for $50,000 total. Outb
horsena [70]

Answer:

What would be the impact on January 1, 2015, the date of the sale?

The following journal entries should be made to register the sale:

January 1, 2015: 2 cars are sold

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  • Cr Merchandise Inventory 37,000

  • Dr Accounts Receivable 50,000
  • Cr Sales Revenue 50,000

On January 30, 2015 Outback Subaru Limited received payment in full from the town for the cars.  What would be the impact of this transaction on this date?

The following journal entry should be made to register the payment:

January 30, 2015: the local government paid the cars

  • Dr Cash 50,000
  • Cr Accounts Receivable 50,000

4 0
1 year ago
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acqu
prohojiy [21]

Answer: Please see below for answers

Explanation:

Year Straight-Line Declining Balance Difference  (000s)

2018       $400          $853                     $453  

2019        400             569                        169  

2020        400             379                        (21)  

               $1,200        $1,801                    $601

Asset cost =$2,720,000

Accumulated depreciation till 2020= $1,801,000

Book value beginning of 2021=$919,000

Residual value=                         -$200,000

Depreciable value=                    $719,000

Remaining estimated life= 6-3years=3

Annual straight line depreciation=    $719,000 /3 = $239,667

rounded dollar= $240,000

2021 journal entry

Adjusting entry                     Debit                   Credit  

Depreciation expense     $240,000

Accumulated depreciation                               $240,000

5 0
1 year ago
Troy filed a good faith complaint of discriminatory harassment against his supervisor, Cynthia. One day after receiving notice o
Paraphin [41]

Answer:

Of course this is a retaliatory action. Troy filed a complaint for discriminatory harassment against Cinthia and she answers back by discriminating against Troy even more. All she needed to do was stop discriminating against Troy, she wasn't supposed to increase discrimination against him. This is an example of what shouldn't happen.

Explanation:

5 0
1 year ago
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