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2 years ago

8

The Cycling Company suggests a list price of $850 for its brand bicycle. If the series trade discounts are 30 percent for retail

ers and 15 percent for wholesalers, the wholesalers would pay ____________________ for each bicycle.

1 answer:

DochEvi [55]2 years ago

8 0

850x.45=340 wholesaler has to pay

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BTR Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000

Marina CMI [18]

Answer: the yield to maturity and yield to call on BTR Co.'s bonds are:

YTM = 0.07507 (7.507%)

YTC = 0.06977 (6.977%)

Explanation:

Using yield to maturity formula below;

YTM = C + (fv - pv)/n ÷ (fv+pv) /2

C = coupon rate ; 9% of par value

9% of $1000

= 9/100 × 1000 = $90

fv = face value/par value = $1,000

pv = price value/market price = $1,160.35

n = number of years to maturity = 18

YTM = 90 + (1000 - 1160.35)/18 ÷ (1000+1160.35)/2

YTM = 90 + (-160.35)/18 ÷ (2160.35)/2

YTM = 90 + (-8.90833333)

÷ 1080.175

YTM = 81.0916667 ÷ 1080.175

YTM = 0.07507

= 7.507% (converted to percentage)

To calculate the yield to call, let s make use of the yield to call (YTC) formula below;

YTC = C + (cp - mp)/n ÷ (cp + mp)/2

C= coupon rate = $90

cp = call price = $1,060

mp = market price/price value = $1,160.35

n = number of years to call = 8

YTC = 90 + (1060-1160.35)/8 ÷ (1060+1160.35)/2

YTC = 90 + (-100.35)/8 ÷ (2220.35)/2

YTC = 90 - 12.54375 ÷ 1110.175

YTC = 77.45625 ÷ 1110.175

YTC = 0.06977

= 6.977% in percentage

5 0

2 years ago

FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading

erma4kov [3.2K]

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

6 0

2 years ago

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park

Hitman42 [59]

Answer:

C. the loss of profit from the delayed opening.

Explanation:

The contract was for Restore Inc to resurface the pools at Swim Park by June 1. Restore Inc couldn't deliver by June 1 and finished the job 15 days later, thereby delaying the seasonal opening of Swim Park.

Swim Park can sue for breach of contract and recover the loss of profit from the delayed opening because Restore Inc failed to deliver according to the terms of the contract thereby making Swim Park lose profit.

The money to be paid to Swim Park would be an estimated profit for the 15 days the park should have been in operation.

7 0

2 years ago

Read 2 more answers

Emma is the team lead at a data analytics firm. She believes in encouraging her team members to fulfill their job responsibiliti

nikklg [1K]

Answer:

Emma is not exhibiting transformational leadership style

Explanation:

As per the scenario mentioned in the question, it is noted that Emma is not exhibiting transformational leadership style instead this is an example of transactional leadership style.

In order to exhibit transformational leadership, Emma will need to motivate and encourage her employees to accomplish and adapt to change that help grow and achieve future success of the organisation. This can be done by setting an example at her level through developing a strong sense of corporate culture, independence and employee ownership in the workplace.

Another behaviour she could exhibit is by avoiding micromanagement. Instead she should train her employees to make decision on their own and take responsibility of their work. This way employees will have space to think creatively and will work to find solutions to the problems faced by them in their workplace.

8 0

1 year ago

Handy Man, Inc., has zero coupon bonds outstanding that mature in eight years. The bonds have a face value of $1,000 and a curre

AnnZ [28]

Answer:

5.657%

Explanation:

Data provided:

Face value = $1,000

Current market price = $640

Time of maturity, t = 8 year

Now,

the compounding formula is given as:

Face value = Current amount × $(1+\frac{r}{n})^{nt}$

where,

r is the rate i.e pretax rate of debt

n is the number of times the interest is compounded i.e for semiannual n = 2

thus, on substituting the values, we get

$ 1,000= $ 640 × $(1+\frac{r}{2})^{2\times8}$

or

1.5625 = $(1+\frac{r}{2})^{16}$

or

$(1+\frac{r}{2})$ = 1.0282

or

r = 0.05657

or

pretax cost of debt = 0.05657 × 100% = 5.657%

3 0

2 years ago