4) The current annualized yield on a 2-year STRIPS is 0.13% and the annualized yield on a 3-year STRIPS is 0.15% (WSJ for week ended 7/31/2020). According to the expectations theory of interest rates, what will be the annualized yield on a 1-year STRIPS two years from now? What would you expect to pay for this STRIPS with a $1,000 face value two year from now?
note: no excel or calculator. using formula only
5. Suppose you have a 3.25% coupon bond with a ytmof 1.50 percent and a term-to-maturity of 3 years. The bond pays its coupon ANNUALLY(once per year) and has a face value of $1,000. What is this bond’s price? What is its duration?
In: Finance
Presented below are a number of balance sheet items for Vaughn,
Inc. for the current year, 2020.
|
Goodwill |
$ 127,970 |
Accumulated Depreciation-Equipment |
$ 292,260 | |||
|---|---|---|---|---|---|---|
|
Payroll Taxes Payable |
180,561 |
Inventory |
242,770 | |||
|
Bonds payable |
302,970 |
Rent payable (short-term) |
47,970 | |||
|
Discount on bonds payable |
15,260 |
Income taxes payable |
101,332 | |||
|
Cash |
362,970 |
Rent payable (long-term) |
482,970 | |||
|
Land |
482,970 |
Common stock, $1 par value |
202,970 | |||
|
Notes receivable |
448,670 |
Preferred stock, $10 par value |
152,970 | |||
|
Notes payable (to banks) |
267,970 |
Prepaid expenses |
90,890 | |||
|
Accounts payable |
492,970 |
Equipment |
1,472,970 | |||
|
Retained earnings |
? |
Debt investments (trading) |
123,970 | |||
|
Income taxes receivable |
100,600 |
Accumulated Depreciation-Buildings |
270,460 | |||
|
Notes payable (long-term) |
1,602,970 |
Buildings |
1,642,970 |
Prepare a classified balance sheet in good form. Common stock
authorized was 400,000 shares, and preferred stock authorized was
20,000 shares. Assume that notes receivable and notes payable are
short-term, unless stated otherwise. Cost and fair value of debt
investments (trading) are the same. (List Current
Assets in order of liquidity. List Property, Plant and Equipment in
order of Land, Building and Equipment.)
In: Accounting
In the current tax year, IRS, the internal revenue service of the United States, estimates that five persons of the many high network individual tax returns would be fraudulent. That is, they will contain errors that are purposely made to cheat the government. Although these errors are often well concealed, let us suppose that a thorough IRS audit will uncover them.
Given this information, if a random sample of 100 such tax returns are audited, what is the probability that exactly five fraudulent returns will be uncovered? Here, the number of trials is n=100. And p=0.05 is the probability of a tax return will be fraudulent. Answer the following questions.
In: Statistics and Probability
The following information relates to Paul Anderson, Property
Manager, at the close of the fiscal year ending December
31:
| 1. | Paul paid a storage locker facility $325 for next January’s rent on a locker and charged it to Rent Expense. | |
| 2. | On November 1, Paul signed a three-month, 12% note to borrow $17,760 from Yorkville Bank. | |
| 3. | The following salaries and wages are due and unpaid at December 31: sales, $1,390; office clerks, $1,080. | |
| 4. | Interest of $505 has accrued to date on a note that Paul holds from Grant Muldaur. | |
| 5. | The estimated loss on bad debts for the period is $1,530. | |
| 6. | Stamps and stationery are charged to the Office Expense account when purchased; $105 of these supplies remain on hand. | |
| 7. | Paul has not yet paid the December rent of $1,230 on the building his business uses. | |
| 8. | Insurance was paid on November 1 for one year and charged to Prepaid Insurance, $1,080. | |
| 9. | Property tax accrued, $1,930. | |
| 10. | On December 1, Paul accepted Alana Zipursky’s two-month, 15% note in settlement of her $7,200 account receivable. | |
| 11. | On October 31, Paul received $2,520 from Tareq Giza in payment of six months’ rent for Giza’s office space in the building and credited Unearned Rent Revenue. | |
| 12. | On September 1, Paul paid six months’ rent in advance on a warehouse, $7,995, and debited the asset account Prepaid Rent. | |
| 13. | The bill from Light & Power Limited for December has been received but not yet entered or paid, $430. (Use Utilities Payable.) | |
| 14. | The estimated depreciation on equipment is $1,090. |
Prepare annual adjusting entries as at December 31
In: Accounting
Dewey Corp. is expected to have an EBIT of $3,250,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $260,000, $165,000, and $265,000, respectively. All are expected to grow at 18 percent per year for four years. The company currently has $21,000,000 in debt and 875,000 shares outstanding. At Year 5, you believe that the company's sales will be $29,000,000 and the appropriate price-sales ratio is 2.5. The company’s WACC is 8.8 percent and the tax rate is 21 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
In: Finance
Fajar Factory wants to build a rice processing factory that will take a year to build. $5 million is spent right away and another $5 million is spent next year. The company CEO is expecting that the factory will lose $1 million in its first year of operation and lose another half a million in its second year of operation. with that initial investment, the factory is expected to produce 8000 rice packs per month and sold fo $30 per unit for nest 20 years. meanwhile, the production cost for pack is $20.
Calculate the fajar factory profit for a year ? Show how you calculate TC,TR, PROFIT
In: Economics
suppose that the mean number of fatal car accidents each year in VA is 26.5 and these accidents follow a Poisson distribution. a) find the mean and standard deviation of the number of fatalities per day in VA? b) Find the probability that on a given day there are 2 fatal car accident accident in VA? C) Find the probability that on a given day there will be at least one fatal one fatal car accident in VA? D) Find the probability that on a given day there will be at most one fatal car accident in VA?
In: Statistics and Probability
The price of a car you are interested in buying is $93.75k. You negotiate a 6-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1.2k per month for the following 5 years, with a balloon payment at the end to cover the remaining principal on the loan. The annual percentage rate (APR) on the loan with monthly compounding is 5%. What will be the amount of the balloon payment 6 years from now?
Note: The term “k” is used to represent thousands (× $1,000).
Required: Suppose the loan has initially been paid in full (without a balance due at maturity), the amount would have totaled $37k. Calculate the absolute percentage difference between the fully amortized loan and the balloon payment.
In: Accounting
in March of this year the University Hospitals Fertility Center in Ohio disclosed that more than 4,000 frozen eggs and embryos were lost due to a storage failure. Suppose you are in charge of delivering the news to devastated patients. What recommendations do you have for how to do this? What would you say? How would you feel about having to do this? What supports should be made available to the affected patients? Finally what are your thoughts on the way it was handled by University Hospitals Fertility Center?
In: Nursing
Schumann Inc. is a CCPC that has the following information for the current year:
Canadian active business income $140,000
Dividend from a taxable Canadian corporation 15,000
Aggregate investment income 60,000
Taxable income 200,000
Income eligible for the small business deduction 140,000
Part I tax payable for the year 21,900
The refundable portion of Part I tax for the year is equal to:
A. $5,750.
B. $18,400.
C. $24,150.
D. $21,900.
In: Accounting