A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 33 years, and a yield to maturity of 7%. What rate of return will be earned by an investor who purchases the bond for $617.39 and holds it for 1 year if the bond’s yield to maturity at the end of the year is 8%?
The answer -15.82% is being marked as wrong please help!
In: Finance
Berry Company reported the following on the company's income statement in two recent years
| Particulars | Current Year | Prior Year |
| Interest expense | $320,000 | $300,000 |
| Income before income tax expense | 3,200,000 | 3,600,000 |
(a)Determine the times interest earned ratio for the current year and the prior year.Round to one decimal place
(b) Is the number of times interest charges are earned improving or declining
In: Accounting
On January 1, 2020, Sandhill Ltd. had 570,000 common shares
outstanding. During 2020, it had the following transactions that
affected the common share account:
| Feb. 1 | Issued 195,000 shares. | |
| Mar. 1 | Issued a 17% stock dividend. | |
| May 1 | Acquired 222,000 common shares and retired them. | |
| June 1 | Issued a 2-for-1 stock split. | |
| Oct. 1 | Issued 64,000 shares. |
The company’s year end is December 31.
QUESTIONS:
A) Determine the weighted average number of shares outstanding as at December 31, 2020.
B) Assume that Sandhill earned net income of $3,227,000 during
2020. In addition, it had 100,000 of 8%, $100 par, non-convertible,
non–cumulative preferred shares outstanding for the entire year.
Because of liquidity limitations, however, the company did not
declare and pay a preferred dividend in 2020.
Calculate earnings per share for 2020, using the weighted average
number of shares determined above.
C) Assume that Sandhill earned net income of $3,227,000 during
2020. In addition, it had 100,000 of 8%, $100 par, non-convertible,
cumulative preferred shares outstanding for the entire year.
Because of liquidity limitations, however, the company did not
declare and pay a preferred dividend in 2020.
Calculate earnings per share for 2020, using the weighted average
number of shares determined above.
D) Assume that Sandhill earned net income of $3,227,000 during
2020. In addition, it had 100,000 of 8%, $100 par, non-convertible,
non–cumulative preferred shares outstanding for the entire year.
Because of liquidity limitations, however, the company did not
declare and pay a preferred dividend in 2020. Assume that net
income included a loss from discontinued operations of $405,000,
net of applicable income taxes.
Calculate earnings per share for 2020.
|
Income from continuing operations |
$___ |
|---|
|
Loss from discontinued operations |
$____ |
|---|
|
Net income |
$_____ |
|---|
In: Accounting
How would you answer the following question:
Next Wednesday's meeting has been moved forward two days. What day is the meeting now that it has been rescheduled?
This question is ambiguous as "moved forward" can be interpreted in two different ways. Did you answer Monday or Friday? The authors of the paper "Even Abstract Motion Influences the Understanding of Time" (Metaphor and Symbol [2011]: 260–271) wondered if the answers Monday and Friday would be provided an equal proportion of the time. A sample of students at Stanford University were asked this question, and the responses are summarized in the following table.
| Response | Frequency |
|---|---|
| Monday | 11 |
| Friday | 33 |
The authors of the paper used a chi-squared goodness-of-fit test to test the null hypothesis
H0: p1 = 0.50, p2 = 0.50,
where p1 is the proportion who would respond Monday and p2 is the proportion who would respond Friday. They reported
χ2 = 11.00
and
P-value < 0.001.
What conclusion can be drawn from this test?
Since the P-value is small, there is convincing evidence to conclude that the population proportions of people who respond "Monday" and "Friday" are equal.
Since the P-value is large, there is not enough evidence to conclude that the population proportions of people who respond "Monday" and "Friday" are not equal.
Since the P-value is small, there is convincing evidence to conclude that the population proportions of people who respond "Monday" and "Friday" are not equal.
Since the P-value is small, there is not enough evidence to conclude that the population proportions of people who respond "Monday" and "Friday" are not equal.
In: Statistics and Probability
analyze the unemployment rate and inflation from 2000 - 2010 in the US.
discuss the interest rate fluctuations from 2000 - 2010 in the US
In: Economics
fireball corporation is an s corporation, Leya owns all of the stock. During the current year. fireball earned a taxable income of 500000 and paid a 300000 distribution to Leyla. which of the following statement is correct
a) fireball will pay corporate income tax in its earnings, and leyla will pay individual income tax on the distribution.
b) only fireball will pay taxes, but leyla will not pay and taxes due to her holding in fireball
C) fireball will not pay any taxes, leyla will pay taxes on the distribution received
d) fireball's income will flow through to leyla's tax return, and she will pay the taxes on the 500000 of corporation income
In: Accounting
Company Deemed, Inc., a US-based company, has sold its products to a Chinese Company. At the spot rate of 1 USD = 7 CNY prevailing today the invoice value is 1 million USD. The company will pay in CNY in 90 days. The 90-day forward rate is 1USD = 7.1 CNY. The borrowing rates in US and China are 2% and 8%, respectively. The company’s cost of capital is 10%. The company has to decide between forward market hedge and money market hedge. Do the analysis and make a recommendation.
Please show EXCEL formulas as well.
In: Finance
Why are you looking to pursue an MBA or MS program at this point in your life and what do you see yourself doing professionally upon graduation? What key actions have you taken up to this point to prepare you for this career? 500 words
In: Accounting
More than 50% of all MBAs leave their first employer within five years. Although the change may mean career growth for these individuals, it represents a loss to the employers. What are some of the probable reasons a MBA would leave his/her first employer?
In: Economics
Traditional trade theories assume that factors of production are
freely mobile between industries and geographic regions within the
same country. Therefore, workers who are displaced due to foreign
competition can switch to other sectors in a different part of the
country after a brief transition without any cost. In reality,
labor markets tend to be sticky. Workers do not move even when
labor market conditions would suggest they should and they are
worse off as others who benefit from international trade are better
off.
International trade increases total surplus and therefore increases
efficiency, but it will be at the cost of equality. What is the
role of government in helping people who lose as a result of
foreign trade?
Note: The US government has a program called the Trade
Adjustment Assistance Program (TAA) to help workers affected by
foreign trade during their adjustment period. However, this program
is criticized by Banerjee and Duflo, Nobel prize winners in
Economics for not being sufficient
In: Economics