Answer:
option (d) $929.42
Explanation:
Data provided in the question:
Coupon bonds payments = 5.65% semiannual
Yield to maturity, r = 6.94% = 0.0694
Face value = $1000
Now,
Coupon bond payments =
× $1,000
= $28.25
market price per bond = Payment ×
+
Here,
n is the maturity period and 2n is due to the semiannual payments
Thus,
market price per bond = $28.25 ×
+
= $28.25 × 10.942 + 620.3
= $929.42
Hence,
The answer is option (d) $929.42
Answer:
$158,730
Explanation:
Mario incoporation started the year with a net fixed assets of $75,300
At the end of the year the net fixed assets was $96,700
The depreciation expense is $13,270
Therefore the company's net capital spending for the year can be calculated as follows
= $96,700+$75,300-$13,270
= $172,000 - $13,270
= $158,730
Hence the company's net capital spending for the year is $158,730
Answer: B. $892.1 million
Explanation:
The Revenue was $939,393 million
When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.
Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.
Increase in Receivables = 309,196 - 221,504
= $87,692 million
Increase in Deferred Revenue= 374,730 - 334,358
= $40,372 million
The Cash generated is therefore;
= 939,393 - 87,692 + 40,372
= $892,073
= $892.1 million
I have attached the Financial Statements of Acme Corporation.
Answer:
X = 789.70
Explanation:
we solve for X considerign each deposit is discounted at the given rate using the lump sum formula:

X = 789.7018868
Answer:
$10
Explanation:
We are to account for external costs in production, since we are asked to find optimal tax.
Given:
We now have:

A represents number of aluminum units produced, let's find A, since the margnal cost is $30.
Thus,





Let's equate the private marginal cost with the marginal revenue of each unit in order to achieve this amount of produced units with tax, t.
We have:

Substituting 100 for A above, we have:

30 - t = 20
t = 30 - 20
t = 10
Therefore, the socially optimal tax on aluminum is $10 per unit