Answer:
Mecca Copy
Budgeted Balance Sheet
Assets
Current assets:
Cash 13200
Accounts receivable 8900
Supplies inventory 5500
Total current assets 27600
Plant and equipment:
Equipment 38000
Accumulated depreciation (15400)
Plant and equipment, net 22600
Total assets 50200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 2600
Stockholders' equity:
Common stock 5000
Retained earnings 42600
Total stockholders' equity 47600
Total liabilities and stockholders' equity 50200
Note: Retained earnings = beginning balance of retained earnings + Net income - Dividend
= 25,000 + 21100 - 3500
= 42,600
On July 9, Mifflin Company receives a $8,600, 90-day, 12% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note
Answer:
Mifflin Company
Journal Entry:
Debit Notes Receivable (Payton Summers)$8,600
Credit Accounts Receivable (Payton Summers)$8,600
To record the receipt of a 90-day, 12% note.
Explanation:
Mifflin Company uses this journal entry to record the receipt of a note receivable from Payton Summers in payment on account. This effectively transfers the debit from Accounts Receivable account to a Notes Receivable account. By this action, the debt is formalized while Mifflin Company is now able to charge interest on the unsettled balance at the agreed rate per annum.
Torrid Romance Publishers has total receivables of $3,000, which represents 20 days’ sales. Total assets are $75,000. The firm’s operating profit margin is 5%. Find the firm's ROA and asset turnover ratio.
Answer:
Assets turnover ratio= 0.73
ROA= 3.65%
Explanation:
Torrid romance publishers have a total receivables of $3,000, it represents a 20 days sales
The total assets is $75,000
The operating profit margin is 5%
= 5/100
= 0.05
The first step is to calculate the total sales
= $3,000×365/20
= $3,000×18.25
= $54,750
The asset turnover ratio can be calculated as follows
= Total sales/Total assets
= $54,750/$75,000
= 0.73
The ROA can be calculated as follows
= Assets turnover ratio×operating profit margin
= 0.73×0.05
= 0.0365×100
= 3.65%
Hence the assets turnover ratio and ROA is 0.73 and 3.65% respectively.
Assume a corporation has earnings before depreciation and taxes of $123,000, depreciation of $41,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) b. How much would cash flow be if there were only $21,000 in depreciation
Answer:
a. Computation of cash flow
Earnings before depreciation and taxes $123,000
Less: Depreciation $41,000
Earnings before taxes $82,000
Less: Taxes ($82,000*35%) $28,700
Earnings after taxes $53,300
Add: Depreciation $41,000
Cash Flow $94,300
b. If Depreciation = 21,000
Computation of cash flow
Earnings before depreciation and taxes $123,000
Less: Depreciation $21,000
Earnings before taxes $102,000
Less: Taxes($102,000*35%) $35,700
Earnings after taxes $66,300
Add: Depreciation $21,000
Cash Flow $87,300
A brand manager for a certain company must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of
Answer:
Optimization
Explanation:
Since we were told that the brand manager has limited budget of $25,000 which makes the manager to decide that television adverts is much more effective than radio adverts making him to allocates, at least 70% of the time to television, based on this I wiill run OPTIMIZATION test reason been that optimization will help and enable me to make the best or most effective use of available resource which will in turn Reduce costs while improving the performance which is why the brand manager decide to allocate 70% to Television in order to make the business more efficient as well as cost effective.
Some managers use _____, which provides four indicators with which organizations can set goals and measure performance.
Answer:
balanced scorecard
Explanation:
The term that is being mentioned in this question is known as a balanced scorecard. This is a strategic management performance metric that is used to measure and provide feedback to a company's management by identifying and improving different internal business functions and their outcomes, usually in regards to the employees themselves. An example of a balanced scorecard can be seen in the attached photo.
A 4 year project has an annual operating cash flow of $55,000. At the beginning of the project, $4,600 in net working capital was required, which will be recovered at the end of the project. The firm also spend $23,100 on equipment to start the project. This equipment will have a book value of $4,940 at the end of the project, but can be sold for $5,880. The tax rate is 35 percent. What is the Year 4 cash flow?
a. $65,809
b. $63,422
c. $21193
d. $55,951
e. $65,151
Answer:Year 4 Cash flow =$65,151.----E
Explanation:
Salvage value of the equipment =$5,880
Book value at end of project before sale = $4,940
Gain on disposal = $940
tax gain non disposal = 35% of $940 =0.35 x 940= $329
Amount after tax salvage value = $5,880 - $329=$5,551
Year 4 Cash flow = Operating cash flow +Net working capital +Amount after tax salvage value = $55,000 + $4,600 +$5551= $65,151.
A stock had returns of 9.62 percent, −14.65 percent, 19.85 percent, 25.35 percent, and 7.65 percent over the past five years. What was the geometric average return for this stock?
Answer:
The geometric average return for this stock was 8.64%.
Explanation:
Geometric average return refers to the return which will result in the correct compounded dollars at the end of the time period.
Geometric average return can be computed using the following formula:
Geometric average return = {[(1 + r1)(1 + r2) ... (1 + rn)]^(1/n)} - 1 ......... (1)
Where r is returns from year 1 to year n.
For the stock in the question, we have:
r1 = 9.62%, 0.0962
r2 = -14.65%, or -0.1465
r3 = 19.85%, or 0.1985
r4 = 25.35%, or 0.2535
r5 = 7.65%, or 0.0765
n = 5
Substituting the values into equation (1), we have:
Geometric average return = {[(1 + 0.0962)(1 - 0.1465)(1 + 0.1985)(1 + 0.2535)(1 + 0.0765)]^(1/5)} - 1
Geometric average return = {1.51310732605096^0.20} - 1
Geometric average return = 0.0864, or 8.64%
Therefore, the geometric average return for this stock was 8.64%.
A single-channel queuing system has an average service time of eight minutes and an average time between arrivals of 10 minutes. The arrival rate is: Group of answer choices 10 per hour. 12.5 per hour. 6 per hour. 7.5 per hour. 8 per hour.
The correct answer is B. 6 per hour
Explanation:
The term "arrival rate" refers to the number of customers that arrive at a business during a specific time such as an hour or a day. This is determined by how often customers arrive or the time between arrivals. This concept complements the service rate, which refers to the customers that receive a service during a period of time.
In the case presented, it is known the time between arrivals is 10 minutes, this means it is expected every 10 minutes a new customer arrives. Based on this, each hour the business can expect a total of 6 customers as 60 minutes divided by 10 (time between arrivals) = 6 customers. Thus, the rate of arrival is 6 per hour.
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $9,250 Purchase season football tickets in September 160 Additional entertainment for each month 250 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 600 Pay for food each month 550 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 950Required:a. Prepare a cash budget for September, October, November, and December. b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?c. What are the budget implications for Craig Kovar?
Answer:
a) Craig Novar's
Cash budget
Months
Sept. Oct. Nov. Dec.
beginning balance 9,250 2,640 2,190 1,740
football tickets -160
other entertainment -250 -250 -250 -250
semester tuition -4,800
rent -600 -600 -600 -600
food -550 -550 -550 -550
apartment deposit -600 600
part time jobs earnings 950 950 950 950
ending balance 2,640 2,190 1,740 1,890
b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.
c) Since Craig is spending more money than what he earns, his cash balance is decreasing month by month. This tendency changes in December because Craig gets his apartment's deposit back, but he still will not have enough money to pay for Spring tuition.
assume the following information about the market and JumpMaster's stock. JumpMaster's beta = 1.50, the risk free rate 2%, the market risk premium is 10.0%. Using CAPM, what is the expected return for JumpMaster's stock?
Answer:
Expected market return = 17%
Explanation:
Given the Jump master’s beta = 1.50
Risk free rate = 2%
Market risk premium = 10%
To find the expected return we have to use the below formula.
Expected market return = Riskfree rate + Beta × Market risk premium
Now insert all the values in order to get the expected market return.
Expected market return = 2 + 1.50 × 10
Expected market return = 17%
Copy equipment was acquired at the beginning of the year at a cost of $36,600 that has an estimated residual value of $3,300 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 1,110,000 copies. This year, 252,000 copies were made. a. Determine the depreciable cost. $ 33,300 b. Determine the depreciation rate. $ per copy c. Determine the units-of-output depreciation for the year. $
Answer:
a. $33,300
b. $0.03 per copy
c. $7,560
Explanation:
Units of Output = (Cost - Residual Value) × ( Period`s Production / Total Expected Production)
Depreciable Cost = Cost - Residual Value
= $36,600 - $3,300
= $33,300
Depreciation Rate = Depreciable cost ÷ Expected Production
= $33,300 ÷ 1,110,000 copies
= $0.03 per copy
Depreciation for the year = Depreciation Rate × Period`s Production
= $0.03 × 252,000 copies
= $7,560
Kelley Company reports $1,250,000 of net income for 2017 and declares $175,000 of cash dividends on its preferred stock for 2017. At the end of 2017, the company had 380,000 weighted-average shares of common stock. 1. What amount of net income is available to common stockholders for 2017
Answer:
Net Income available to common stockholders = $1075000
Explanation:
The preferred stock holders have a preference over the common stockholders in the distribution of dividends as they are paid before the common stock holders and receive a fixed amount of dividend. However, the net income that is available to common stock holders is all the net income that is left after deducting the preferred stock dividend from it.
Thus, the net income available to common stockholders can be calculated as,
Net Income available to common stockholders = Net Income - Preferred stock dividend
Net Income available to common stockholders = 1250000 - 175000
Net Income available to common stockholders = $1075000
To be effective, your goals must be balanced in the following areas:a. Career, Fun, Health, Relationship, Spiritualityb. Environmental, Spirituality, Organicc. Career, Financial, Health and Fitness, Relationships, Spirituality
Answer:
Career , Financial , Health and Fitness, Relationships, Spirituality
Explanation:
Goals are what one plan to achieve within a specified period of time. Goal could be short term , usually one year or long term goal, which is more than a year. People that want to succeed must set goals because setting goal gives direction. When people set goals, it gives them the opportunity to work harder towards achieving that goal and also provides benchmark for determining if one is actually succeeding or on the right path.
People set goals on daily basis. The question is; how effective are those goals. It therefore means that for a goal to be effective, it must touch or cover the following areas ; career, financial, health and fitness, relationships, spirituality.
For each of the following cases determine the ending balance in the inventory account. a. Jill’s Dress Shop had a beginning balance in its inventory account of $44,500. During the accounting period, Jill’s purchased $88,500 of inventory, returned $5,900 of inventory, and obtained $840 of purchases discounts. Jill’s incurred $1,180 of transportation-in cost and $690 of transportation-out cost. Salaries of sales personnel amounted to $35,500. Administrative expenses amounted to $40,100. Cost of goods sold amounted to $91,300.b. Ken’s Bait Shop had a beginning balance in its inventory account of $8,000. During the accounting period Ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. Sales discounts amounted to $640. Ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. Selling and administrative cost amounted to $12,300. Cost of goods sold amounted to $33,900.
Answer:
a) Jill's
beginning inventory = $44,500
purchases = $88,500 - $5,900 - $840 = $81,760
transportation in expenses = $1,180
total inventory costs = $127,440
cost of goods sold = $91,300
ending inventory = $127,440 - $91,300 = $36,140
b) Ken's
beginning inventory = $8,000
purchases = $36,900 - $1,200 - $360 = $38,460
transportation in expenses = $900
total inventory costs = $47,360
cost of goods sold = $33,900
ending inventory = $47,360 - $33,900 = $13,460
We are evaluating a project that costs $874,800, has a nine-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 85,000 units per year. Price per unit is $55, variable cost per unit is $39, and fixed costs are $765,000 per year. The tax rate is 24 percent, and we require a return of 11 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.
Calculate the best-case and worst-case NPV figures
Answer:
best case scenario:
project outlay = $874,800
yearly cash flows:
projected sales = 85,000 x 110% = 93,500sales price = $55 x 110% = $60.50variable costs = $39 x 90% = $35.10fixed costs = $765,000 x 90% = $688,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%yearly cash flows = {[(93,500 x $60.50) - (93,500 x $35.10) - $688,500 - $97,200] x (1 - 24%)} + $97,200 = $1,304,992
using a financial calculator, NPV = $6,351,002.73
worst case scenario:
project outlay = $874,800
yearly cash flows:
projected sales = 85,000 x 90% = 76,500sales price = $55 x 90% = $49.50variable costs = $39 x 110% = $42.90fixed costs = $765,000 x 110% = $841,500depreciation costs = $874,800 / 9 = $97,200tax rate = 24%yearly cash flows = {[(76,500 x $49.50) - (76,500 x $42.90) - $841,500 - $97,200] x (1 - 24%)} + $97,200 = -$232,488
using a financial calculator, NPV = -$2,071,211.79
Which of the following statements regarding fiscal policy are true according to the macroeconomic consensus in the United States?
a. Congress, not the Federal Reserve, should be in charge of monetary policy.
b. Expansionary monetary policies should be used to keep unemployment below its natural rate.
c. Monetary policy should focus on price stability.
Answer: Monetary policy should focus on price stability.
Explanation:
The statements regarding fiscal policy that is true according to the macroeconomic consensus in the United States is that monetary policy should focus on price stability.
The statements that Congress, not the Federal Reserve, should be in charge of monetary policy and that Expansionary monetary policies should be used to keep unemployment below its natural rate are both wrong.
The accounts receivable turnover is computed as __________ divided by __________. sales; accounts receivable sales; average accounts receivable sales; net income accounts receivable; net income
Answer:
sales ; average accounts receivables
Explanation:
Accounts receivable turnover refers to how a business firm manage its assets. Businesses, companies uses accounts receivables to know and quantify how perfectly goods bought on credit by their customers are being paid back. It also measures how business gives credit and collects back it's debt .It is calculated as net sales divided by average accounts receivables.
The incredible shrinking $50 bill in 1957 was worth $50, but in 2007 it is worth only $. a. What was the compounded average annual inflation rate (loss of purchasing power) during this period of time? b. Fifty dollars invested in the stock market in 1957 was worth $ in 2007. In view of your answer to Part (a), what was the annual real interest rate earned on this investment?
Answer:
A. 4.02%
B. 3.49%
Explanation:
a. Computation of the compounded average annual inflation rate during this period of time
Using this formula
Annual inflation rate=FV/ P *(1+i)^t
Where,
t = 2007 - 1957 = 50 yrs
FV = 6.42
P = 50
Let plug in the formula
Annual inflation rate = (6.42 / 50)^(1/50) - 1
Annual inflation rate= 0.1284 ^ 0.02 - 1
Annual inflation rate= 0.959779 - 1
Annual inflation rate= -0.0402208 *100%
Annual inflation rate=4.02%
b. Computation of the annual real interest rate earned on this investment
First step is to find the Norminal ROR
Using this formula
Norminal ROR
= FV/ P *(1+i)^t
Where
FV = 1998
P = 50
let plug in the formula
Norminal ROR = (1998 / 50)^(1/50) -1
Norminal ROR= 39.96 ^ 0.02 - 1
Norminal ROR= 1.076545 - 1
Norminal ROR= 0.0765457 *100
Norminal ROR= 7.65%
Last step is to calculate for annual real interest rate earned using this formula
Annual real interest rate earned = (1+ Nominal ROR) / (1+ Inflation) -1
Let plug in the formula
Annual real interest rate earned=(1+0.0765457) / (1+0.0402208) - 1
Annual real interest rate earned= (1.0765457) / (1.0402208) - 1
Annual real interest rate earned= 1.034920 - 1
Annual real interest rate earned= 0.0349*100
Annual real interest rate earned=3.49%
Therefore the Annual inflation rate will be 4.02% while Annual real interest rate earned will be 3.49%
Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items?
a. FIFO
b. average
c. LIFO
d. specific identification
Answer: Specific identification
Hope it is correct
who are the customers for textbooks? What do these customers want in terms of goods and services related to textbooks? From the publishers point of view, who are the key customer?
Answer:
the customers for textbooks are students and schools
Suppose that a museum of modern art discovers the following: adults are willing to pay $20 per ticket to see a Monet exhibit. Students are willing to pay less; 60% of students have WTP of $15, and 40% are willing to pay up to $10. There are no marginal costs to allowing more viewers into the museum. The museum manager decides to set the regular price at $20, and offer a student discount. What discount should it offer?
Answer:
50%
Explanation:
From the question we have here
If adults would pay 20$
Out of a 100% students:
60% would pay 15
40% would pay 10
If regular price = 20$
We are required to find discount
Discount = (20 - 10)/20 x 100
Discount = 0.5 x 100
Discount = 50%
The museum should offer 50percent discount.
Bramble Corp. recorded operating data for its shoe division for the year. Sales$1300000 Contribution margin360000 Controllable fixed costs180000 Average total operating assets720000 How much is controllable margin for the year
Answer:
controllable margin for the year is $180,000.
Explanation:
The Controllable Margin is the Profit that is controllable by the divisional manager.
Calculation of Controllable Margin :
Contribution Margin $360,000
Less Controllable fixed costs ($180,000)
Division Controllable Margin $180,000
Braxton's Cleaning Company stock is selling for $33.25 per share based on a required return of 11.7 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 4.5 percent indefinitely?
Answer:
So, the next annual dividend will be $2.394
Explanation:
The constant growth model of DDM is used to calculate the price of a stock today whose dividend growth rate is expected to be constant forever. The price of such a stock is calculated using the formula for price under the constant growth model of DDM,
P0 = D1 / (r - g)
Where,
P0 is price todayD1 is the next annual dividend that will be paid by the stockr is the required rate of return g is the growth rate in dividendsTo calculate the next annual dividend, we will input the available values for P0, r and g in the formula,
33.25 = D1 / (0.117 - 0.045)
33.25 * (0.072) = D1
2.394 = D1
So, the next annual dividend will be $2.394
Suppose Happy Dog Soap Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $275,000
Year 2 $475,000
Year 3 $400,000
Year 4 $500,000
Happy Dog Soap Company's weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?
a. -$5,056,663
b. -$1,831,663
c -$2,106,412
d. -$2,197,996
Answer:
-$1,878,086.608
Explanation:
The computation of the net present value is shown below;
(in dollars) (in dollars)
Year Cash flows Discount factor Present value
0 -3225000 1 -3225000 (A)
1 275000 0.9259259259 254629.630
2 475000 0.8573388203 407235.940
3 400000 0.793832241 317532.896
4 500000 0.7350298528 367514.926
Total 1346913.392 (B)
Net present value -$1,878,086.608 (A - B)
This is the answer but the same is not provided in the given options
If an investor buys enough stocks, he or she can, through diversification, eliminate all of the unique risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all systemic risk.
A. True
B. False
Answer: True
Explanation:
Buying enough negatively correlated stock can indeed help in diversification of a Portfolio and this on its own is very important as it reduces risk. The type of risk that it reduces however is Unsystematic risk. This is the unique risk inherent in owing stocks.
Systematic risk which is also called undiversifiable risk however cannot be so easily eliminated. This risk is inherent in the Market or the Market segment in question and results from a mix of the Economic, Geo-political and Financial factors in the market. As such, it will not be possible to eliminate all systematic risk.
XYZ, Inc. has a beta of 0.8. The yield on a 3-month T-bill is 5%, and the yield on a 10-year T-bond is 7%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 20%. What is the estimated cost of common equity using the CAPM? Show your work
Answer:
the estimated cost of common equity using the CAPM is 11.40 %.
Explanation:
Cost of Equity = Return on the Risk Free Security + Beta × Return on Market Portfolio
= 7.00 % + 0.8 × 5.5%
= 11.40 %
The estimated cost of common equity using the CAPM is 11.40 %.
Calculation of the cost of common equity;Since the return on risk-free rate is 7%, beta is 0.8 and, the market risk premium is 5.5%
So here the cost of common equity should be
= Return on the Risk Free + Beta × Market risk premium
= 7.00 % + 0.8 × 5.5%
= 11.40 %
Hence, The estimated cost of common equity using the CAPM is 11.40 %.
Learn more about equity here: https://brainly.com/question/24300830
Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents which step in the control process?
a. take corrective action, if necessary
b. compare performance to standards
c. recognize success
d. measure performance
e. establish standards
Answer:
e. establish standards
Explanation:
-Take corrective action, if necessary is when managers decide strategies to implement when the results are not meeting the standards that were established.
-Compare performance to standards is the step that determines if there is a difference between the company's performance and the standards.
-Recognize success is not a step in the control process.
-Measure performance refers to gather and analyze data to determine if the company is meeting the goals set.
-Establish standards refers to establishing goals that are specific, attainable and clear to be able to evaluate the company's performance.
According to this, the answer is that Uber's guidance that if a driver's "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactivation" represents establish standards because Uber established a rating that driver's need to achieve which represents the standard that would be use to evaluate them.
At December 31, 2018, Hull-Meyers Corp. had the following investments that were purchased during 2018, its first year of operations:
Cost Fair Value
Trading Securities:
Security A $ 930,000 $ 943,000
Security B 135,000 129,400
Totals $ 1,065,000 $ 1,072,400
Securities Available-for-Sale:
Security C $ 730,000 $ 807,000
Security D 930,000 946,200
Totals $ 1,660,000 $ 1,753,200
Securities to Be Held-to-Maturity:
Security E $ 520,000 $ 530,600
Security F 645,000 639,400
Totals $ 1,165,000 $ 1,170,000
No investments were sold during 2018. All securities except Security D and Security F are considered short-term investments. None of the fair value changes is considered permanent.Required:Compute the below table to calculate the following. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The Totals computed are as follows:
Current Assets = $2,399,400
Noncurrent Assets = $1,591,200
Net Income (I/S) = $7,400
Other Comprehensive income (OCI) = $93,200
Total Comprehensive Income = $100,600
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the full question.
The explanation to the answer is now provided as follows:
Required: Compute the below table to calculate the following. (Amounts to be deducted should be indicated with a minus sign.)
Note: See the attached Excel file for the computed table.
Also note the following:
1. In the computed table, all the Trading Securities and Securities Available-for-Sale are stated at Fair Value, and the Net Income (I/S) of each of the security is calculated by deducting the Cost of each of them their Fair Value.
2. Securities to Be Held-to-Maturity are stated at Cost and therefore, no profit is reported for them.
Businesses should test data storage procedures periodically to ensure that backed up data is correct and complete, and that the storage media or cloud-based storage service works properly.
A) True
B) False
Answer:
True
Explanation:
Data security is very important for a business. The business generates, Collects and processes the available data, which incur huge expenses. To protect this data management should place some internal control within the organization. Backing up the data is also a control to protect the organization's data.
The test of storage procedure should be in place in order to strength of internal control. So, it is true to test data storage procedures periodically to ensure that backed up data is correct and complete, and that the storage media or cloud-based storage service works properly.
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturity. The yield to maturity on this bond is 4.1 percent.
What is the price of the bond?
Answer:
Price of the bond = $4,122.36
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond for Yan Yan Corp. be worked out as follows:
Step 1
PV of interest payments
Semi annul interest payment
= 4.6% × 5,000 × 1/2 = 115
Semi-annual yield = 4.1%/2 = 2.05 % per six months
Total period to maturity (in months) = (2 × 21) = 41 periods
PV of interest =
115 × (1- (1+0.0205)^(-21)/0.0205)=1,946.47
Step 2
PV of Redemption Value
= 5000 × (1.0205^(-41) = 2,175.89
Step 3:Price of the bond
Total present Value = 1,946.47 + 2,175.89 = 4,122.36
Price of the bond = $4,122.36
