Cost per unit
(300,000÷15,000)+20=40
Current profit
50×15,000−40×15,000=150,000
Profit change
60×15,000−40×15,000=300,000
units will knoll need to sell for profit to remain the same as before the price change is
(150,000+300,000)÷40=11,250
Answer:
1. True
2. True
3. False
4. True
5. False
6. True
7. True
Explanation:
1- Bond are a form of interest bearing notes payable, they are used by and corporations (also issued by them), universities and governmental entities as well.
2- Secured bond is a type of bond that is secure by the issuer`s pledge of a specific asset and that is a form of collateral on the loan.
3- It is the opposite, whenever a bond is unsecured, it can be referred to as a debenture, this kind of bond generally have a more specific purpose, they are typically issued to raise capital to meet the expenses of a project or to pay for a expansion in business.
4- Conversion are features added to bonds because it able to them to lower the coupon rate on debt and to delay dilution. It gives the holder the option to convert or exchange the bonde for a predetermined number of shares in the issuing company, they also have lower interest rate what is more attractive to bond buyers.
5-The rate used to determine the amount of cash interest the borrower pays is called the coupon rate.
6- The rate of interest the bond issuer will pay quoted as the face value of the bond is expressed as a percentage, for example: a 4% coupon rate means that bondholders will receive 4%* $1000 (face value) = $40 every year.
7- The present value of a bond is determinate by an amount you have been promised to receive in the future, but valued today, so if you want to sell it then you should sell it taking into consideration its present value.
Answer:
The amount to be paid for the contract today = $220,908.32
Explanation:
<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>
Present Value = A ×( 1 - (1+r)^(-n))/r
A- 22,500, r- rate of return - 8%, n -no of years 20 years
PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08
PV = 22,500 ×9.8181
PV = $220,908.32
The amount to be paid for the contract today = $220,908.32
Answer:
Variable cost
Explanation:
A variable cost is a corporate cost that adjustments with respect to creation yield. Variable costs increment or lessening relying upon an organization's creation volume; they ascend as generation increments and fall as creation diminishes.
It is the corporate costs that change in direct extent to the amount of yield.
Answer:
Option (c) $7,672
Explanation:
Data provided in the question:
Investment amount i.e principle = $9,875
Interest rate,r = 4.8%
Time, t = 12 years
Now,
Future value = Principle ×
n = number of times compounded per year
Future value =
Future value =
Future value =
Future value = $17,546.55
Also,
Future value = Principle + Interest
Therefore,
$17,546.55 = $9,875 + Interest
or
Interest = $17,546.55 - $9,875
= 7671.55 ≈ $7,672
Hence,
Option (c) $7,672
