Answer: 11%
Explanation:
Using the Gordon Growth Model, the price of a stock is:
= Next dividend / (Expected return - Growth rate)
The growth rate will therefore be:
100 = 4 / (r - 7%)
(r - 7%) * 100 = 4
r - 7% = 4 /100
r = 4% + 7%
= 11%
The Southern Bell Company manufactures 2,000 telephones per year. The full manufacturing costs per telephone are as follows:
Direct materials $2
Direct labor 8
Variable manufacturing overhead 6
Average fixed manufacturing overhead 6
Total $22
The Illinois Bell Company has offered to sell Southern Bell Company 2,000 telephones at $15 per unit. If Southern Bell accepts the offer, $8,000 of fixed overhead will be eliminated. Southern Bell should:
a. Make the telephones, the savings is $2,000.
b. Buy the telephones, the savings is $10,000.
c. Buy the telephones, the savings is $12,000.
d. Make the telephones, the savings is $12,000
Answer:
The company should buy the units because it will save $10,000.-
Explanation:
Giving the following information:
Make in-house:
Unitary variable cost= 2 + 8 + 6= $16
Avoidable fixed cost= $8,000
Buy:
Unitary cost= $15
First, we will determine the total cost of each option:
Make in house= 2,000*16 + 8,000= $40,000
Buy= 15*2,000= $30,000
The company should buy the units because it will save $10,000.-
b. Buy the telephones, the savings is $10,000.
The Meaning or Definition of Direct Materials. (Cost Accounting). Direct materials are those materials which could be identified on the product and can be conveniently measured and directly charged of the product. so, these materials directly enter the product and form a part of the finished product.
Giving the following information:
Make in-house:
Unitary variable cost= 2 + 8 + 6= $16
Avoidable fixed cost= $8,000
Buy:
Unitary cost= $15
First, we will determine the total cost of each option:
Make in house= 2,000*16 + 8,000= $40,000
Buy= 15*2,000= $30,000
The company should buy the units because it will save $10,000.
Examples of direct materials include the following:
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I need help with the operation management assignment plz
100 pts
The table identifies how many thousands of units of corn and diamonds the United States and Congo can produce in one week. Use this data to answer the question that follows.
Corn
Diamonds
United States
60
10
Congo
20
5
Which statement is true based on the data table?
The United States should specialize in diamonds and trade for corn.
The United States should specialize in corn and trade for diamonds.
Congo should specialize in corn and trade for diamonds.
Congo should specialize in both corn and in diamonds.
Answer:
In view of the units of corn and precious stones delivered by the US, the open-door cost of creating corn is B. 10⁄60.
What is the open-door cost of delivering corn?
The open-door cost of delivering corn to the US would be the number of precious stones that are surrendered to make one unit of corn.
This can be found as:
= Units of jewels/Units of corn
= 10/60 jewels
All in all, choice B is right.
Answer:
B) The United States should specialize in corn and trade for diamonds.
Explanation:
I got it right on the test
Which of the following is true if you find a better rate on an external 3rd party channel within 24 hours of making a reservation through one of Marriott's direct channels?
If you find a better rate on an external 3rd party channel within 24 hours of making a reservation through one of Marriott's direct channels, the Marriott’s Best Rate Guarantee policy comes into effect.
Marriott’s Best Rate Guarantee policy is a commitment to providing the lowest rate possible. If you find a lower rate within 24 hours of booking through one of Marriott’s direct channels, Marriott will match that rate and offer an additional discount of 25%.
This policy applies to any Marriott brand including Ritz-Carlton, St. Regis, Westin, Sheraton, Aloft, and othersYou need to first book your reservation through Marriott’s direct channels like Marriott.com, the Marriott Mobile app, Marriott Bonvoy app, the Marriott Reservation Center, or directly with the hotel.
After that, you should look for lower rates on other third-party websites. If you find a lower rate within 24 hours, contact Marriott’s Customer Care team, and they will match that rate plus an additional discount of 25%.The policy does come with some terms and conditions.
The lower rate you find on the third-party website must be for the same hotel, same room type, same dates, same number of guests, same currency, and with the same booking conditions. It also excludes rates that are only available to members of certain groups or organizations, package rates that include flights, car rentals, and other amenities, and rates that are not available to the general public
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What’s the forecasted EBIT based on the information below? -
Revenues: 8,100
Cost of goods sold: 4,900
SG&A: 1,500
Depreciation: 400
Interest: 150
Taxes: 390
The forecasted EBIT based on the information given, equals to the amount of $1,300.
What is the meaning of Earnings before interest and taxes?In accounting, the earnings before interest and taxes refers to a company's net income before income tax expense and interest expenses are deducted, its also referred to as operating earnings, operating profit, and profit before interest and taxes. It is an indicator of a company's profitability. It is calculated as revenue minus expenses excluding tax and interest.
As a financial metrics, the earnings before interest and taxes is used to analyze the performance of a company's core operations without the costs of the capital structure and tax expenses impacting profit.
EBIT = Revenue − COGS − Operating Expenses
EBIT = 8100 - 4,900 - (1,500 + 400)
EBIT = 8100 - 4,900 - 1,900
EBIT = $1,300
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Rode Company estimates bad debt expense at 1% of credit sales. The company reported accounts receivable of $100,000 and a pre-adjustment credit balance in its allowance for uncollectible accounts account of $2,000 at the end of the current year. During the current year, Rode’s credit sales were $2,000,000. What is the amount of the company’s bad debt expense for the current year?
Answer:
$20,000
Explanation:
Calculation for the amount of the company’s bad debt expense for the current year
Using this formula
Bad debt expense = Credit Sales Amount × Estimated percentage uncollectible
Let plug in the formula
Bad debt expense = $2,000,000 × 1%
Bad debt expense =$20,000
Therefore the amount of the company’s bad debt expense for the current year will be $20,000
Briefly discuss Sherif’s (1966) classic study of boys at summer camp in terms of findings and implications for understanding competition.
Sherif’s (1966) classic Robbers Cave study of boys at summer camp finds the relationship between the two groups of boys immediately deteriorated when the event began.
In the 1940s and 1950s, social psychologist Muzafer Sherif and his associates conducted a number of investigations, including the Robbers Cave experiment. Sherif investigated the interactions between male groups at summer camps and a competitor group with the hypothesis that "when two groups have competing purposes... their members would become antagonistic to one other even when the groups are constituted of normal well-adjusted individuals at a summer camp " The Robbers Cave study found the incident swiftly escalated once the parties started throwing jabs. The Sherif discovered that the summer camps' surveys, in which they were asked to score their own team and the opposing team on good and bad attributes, contained questions about group animosity.
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impact of strategy evaluation and control in gaining competitive advantage
Answer:
Explanation: For the better part of a decade, strategy has been a business buzzword. Top executives ponder strategic objectives and missions. Managers down the line rough out product/market strategies. Functional chiefs lay out “strategies” for everything from R&D to raw-materials sourcing and distributor relations. Mere planning has lost its glamor; the planners have all turned into strategists.
Questions for Critical Thinking
1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be?
2. To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?
3. In what other product areas would Quirky’s business model work the best?
4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up. All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.
Critical thinking questions1. Do you think Quirky’s basic business model is sound and fair? If you could suggest any changes, what would they be? Quirky’s basic business model is sound and fair because they involve the public in developing products by taking ideas from people and turning them into products, splitting the profits from the product sales with the inventor, and also collaborating with the inventor from the start of the idea to its final product.
However, there are a few changes I would suggest. First, the public could have more control over which product idea is to be developed into a product. Second, the company could offer more compensation to the inventor, especially if the product becomes a commercial success.2.
To what degree does Quirky’s business reflect the attributes of a sound business idea as described in Chapter 2?Quirky’s business idea reflects the attributes of a sound business as described in Chapter 2 of the text, including the following attributes:
Quirky is innovative in its business model, as it involves the public in developing products.Quirky has a good system of assessing the market’s demand for each product idea.
Quirky has a flexible business model, as it is able to adapt to changes in the market.3. In what other product areas would Quirky’s business model work the best?
Quirky’s business model could work well in a number of other product areas, including Home improvement and do-it-yourself (DIY) products;
Fashion and clothing; Outdoor gear and accessories; Personal care and hygiene; Consumer electronics.4. Think of the challenges in your own life that might represent a product idea for Quirky. If you don’t think of something right away, don’t give up.
All of us encounter problems and challenges in our everyday lives that might represent the basis of a promising idea. Be prepared to describe to others one of the challenges or problems you encounter and how a solution to the problem could be fashioned into a product idea to submit to Quirky.
One of the challenges I have encountered is the issue of losing small items such as keys, earrings, and others. A solution to this challenge could be fashioned into a product idea by developing a small, inexpensive device that could be attached to small items.
The device would emit a signal that would be detected by an app on the user’s phone if the item were lost. This could be developed into a product idea and submitted to Quirky for further development.
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Using the Internet, local newspapers, and/or any regional information, write a 500-word report on on-line banking. In your report, tell of the advantages (if any) over regular banking. Why would it be attractive to people? What conveniences are offered? Is it safe, or will other people get access to your accounts?
We said that tourism helps build infrastructure. What is infrastructure referring to?
a
The economy/money
b
Interest in the destination
c
Reputation
d
Roads, buildings, and hotels
Answer:
D
Explanation:
Although it could be A, Infrastructure relates more directly to buildings and services that support the economy.
Ms. Fresh bought 1,000 shares of Ibis Corporation stock for $5,100 on January 15, 2018. On December 31, 2020, she sold all 1,000 shares of her Ibis stock for $4,550. Based on a hot tip from her friend, she bought 1,000 shares of Ibis stock on January 23, 2021, for $3,025. What is Ms. Fresh's recognized loss on her 2020 sale, and what is her basis in her 1,000 shares purchased in 2021?a. $0 LTCL and $4,850 basis.b. $560 LTCL and $4,290 basis.c. $840 LTCL and $4,010 basis.d. $1,120 LTCL and $3,730 basis.e. $1,400 LTCL and $3,450 basis.
Answer:
LTCL = $0
Basis = $3,575
Explanation:
January 15, 2018, buy 1,000 shares at $5,100
December 31, 2020, sold 1,000 shares at $4,550
If Ms. Fresh hadn't repurchased the stock in January, she could have reported a long term capital loss of $550. But since she repurchased the 1,000 shares just after selling them, it is considered a wash sale.
So no long term capital loss will be recognized and the basis of the 1,000 stocks = $3,025 + $550 = $3,575
Determine which of these fundamental factors is affecting the cost of money in the scenario described: Inflation Risk Time preferences for consumption
Answer:
hello your question is incomplete attached below is the complete question
answer : Time preferences for consumption
Explanation:
The Fundamental factors that is affecting the cost of money in the scenario is the Time preferences for consumption, this is because your accountant advising you to invest in your retirement account which you could use/consume after you retire from active service is a time preference for consumption because you can consume the bonus now by buying the sports car.
he following information is from the materials requisitions and time tickets for job 9 completed by great bay boats. materials requisitions are identified by code numbers starting with the letter m, and the time tickets start with t. estimated (applied) overhead for job 9 is $1,400. date document amount july 1 m-46 $ 1,250 july 1 t-33 600 july 5 m-47 1,000 july 5 t-34 450 july 10 t-35 300 prepare a job cost sheet for job 9, which includes costs for direct materials, direct labor, overhead, and total cost.
The job cost sheet preparation for Job 9 for Great Bay Boats is as follows:
JOB COST SHEET: Job 9
Direct Materials Direct Labor Overhead
Date Materials Requisition Amount Time-Ticket Amount Amount
Number Number
July 1 M-46 $ 1,250
July 1 T-33 $600
July 5 M-47 1,000
July 5 T-34 450
July 10 T-35 300
July 10 Applied overhead $1,400
Total $2,250 $1,350 $1,400
Total costs = $5,000
What is a job cost sheet?
A job cost sheet is a record of all the costs that involve the production of a job segment or single job.
The job cost accounting system collects costs by job using job cost sheets. The job cost sheet helps to determine how much each job costs to determine the price per unit or job.
Data and Calculations:
Date Document Amount
July 1 M-46 $ 1,250
July 1 T-33 600
July 5 M-47 1,000
July 5 T-34 450
July 10 T-35 300
Therefore, the total costs for Job 9 are $5,000.
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Portraits. Belinda, a famous portrait painter, agreed to paint Harry's portrait for $5,000. She also agreed to paint the portraits of Michelle's two Welsh Corgi dogs, Baby and Bree. Michelle agreed to pay Belinda $12,000 for the portraits. Belinda charged Michelle more because dogs annoyed her. Belinda met the spoiled dogs, and they really got on her nerves. Plus, she was behind on finishing Harry's portrait. Belinda, therefore, proceeded to assign the right to receive the money for the dog portraits and the duty to paint the dog portraits to her assistant, Fred. He eagerly accepted and painted the portraits. As payment for amounts she owed him for various duties, Belinda also assigned to Fred the right to receive payment from Harry. Neither the contract Belinda had with Harry nor the contract she had with Michelle expressly prohibited assignment or delegation of contractual rights and duties. Belinda finished the portrait of Harry and called him to come and pick it up. Meanwhile, a disgruntled secretary who disliked Belinda told both Michelle and Harry about the agreements with Fred. Michelle was furious and refused to pick up the portrait or pay anyone. Harry likewise refused to pay for his portrait claiming that the right to payment could not be assigned. What would be the most likely result if Fred sues Harry for the $12,000 payment?
A. Fred will lose unless Fred can prove that he was ignorant of the fact that Harry did not want the benefits assigned.
B. Harry will win because the portrait was personal in nature and could not be assigned.
C. Harry will win because he did not expressly agree to the assignment.
D. Fred will win because the right to receive payment could be validly assigned.
E. Fred will win unless Harry can prove that Fred knew that Harry did not want the benefits assigned.
The most likely result if Fred sues Harry for the $12,000 payment is D. Fred will win because the right to receive payment could be validly assigned.
It should be noted that every contract creates its own rights and duties. Based on the information given, the obligee is Belinda.
The obligee in this case transfers the right to receive payments to a third-party who is Fred. Also, from the information, Belinda gave Fred the right to receive the payment from Harry.
Therefore, based on the above information, Fred has the right to receive payment. Therefore, if Fred sues Harry for the $12,000 payment, he'll win.
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You are given the following particulars of a business having three departments: 963
Department
Purchases
Opening Stock
A
200 units
B
300 units
ISO units
71
1500 units
1000 units
2000 units
Additional Information:
1. Purchases were made at total cost of Rs.92,000.
2. The % of gross profit on turnover is the same in each case.
3. Purchases & Sales prices are constant for the last 2 years.
4. Selling price per unit:
A
Department
B
C
You are required to prepare Departmental Trading Account.
Closing Stock
100 units
160 units
200 units
Rs.
20
25
30
Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $3 million on net income of $5 million. However, net income is expected to grow by 26% in 2020, and Boehm plans to invest $3.0 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 36%. Boehm has 1 million shares of stock. Calculate Boehm's dividend per share for 2020 under each of the following policies:
Boehm Corporation's dividend per share is computed according to the given policies as follows:
for 2020 if its 2020 dividend payment is set to force dividends per share to grow at the long-run growth rate in earnings is: $3,210,000;The dividend per share if the 2019 dividend payout ratio continues - $,378,000The use of pure residual policy with all distribution in form of dividends - $4,380,000Extra dividend - $2,900,000.The calculation explaining the above is as followsA) The formula for the Dividend payout ratio is:
Dividend/Net Income
For 2019 therefore,
Dividend payout = ($3,000,000/$5,000,000) * 100
= 60%
Income for 2020 at a growth rate of 7% = $ 5,000,000 * 1.07 (that is 107%)
= $5,350,000
Hence the Dividend for 2020 = $5,350,000 * 60% = $3,210,000
Hence, Dividend Per Share (since there are no special dividend or share outstanding) = $3,210,000
B) The dividend per share if the 2019 dividend payout ratio continues
Dividend = Net income * payout ratio
Dividend = $5,000,000* 1.26 * 60%
Dividend = $3,780,000
C) Where there is the use of pure residual policy with all distribution in form of dividend
Total Investment = $3,000,000
Debt finance = $3,000,000 * 36% = $1,080,000
Note that the Dividend for 2020 = Net Income - (Capital investment - Investment via debt financing)
Dividend = $6,300,000 - ($3,000,000 - $1,080,000)
Dividend = $6,300,000 - $1,920,000 = $4,380,000
D) Extra dividend calculated
Total Dividend = Regular dividend at long-run growth rate + extra dividend
Debt ratio = 30%
Equity ratio = 100% - 30% = 70%
Extra Dividend = Net income - (Equity ratio * Investment)
Extra Dividend = $5,000,000 - ($3,000,000 * 70%)
Extra Dividend = $5,000,000 - $2,100,000 = $2,900,000.
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Full Question:
Boehm Corporation has had stable earnings growth of 7% a year for the past 10 years, and in 2019 Boehm paid dividends of $3 million on net income of $5 million. However, net income is expected to grow by 26% in 2020, and Boehm plans to invest $3.0 million in a plant expansion. This one-time unusual earnings growth won't be maintained, though, and after 2020 Boehm will return to its previous 7% earnings growth rate. Its target debt ratio is 36%. Boehm has 1 million shares of stock.
1) Calculate Boehm's dividend per share for 2020 under each of the following policies: Its 2020 dividend payment is set to force dividends per share to grow at the long-run growth rate in earnings. Round your answer to the nearest cent.
2) It continues the 2019 dividend payout ratio. Round your answer to the nearest cent. $ It uses a pure residual policy with all distributions in the form of dividends (36% of the $3.0 million investment is financed with debt). Round your answer to the nearest cent.
3) It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy.
What will the extra dividend be? Round your answer to the nearest cent.
Assessment
Which of the following is an example of investing in yourself?
A. Taking the time to learn how to create a budget.
B. Investing your money in the stock market.
C. Planning out your financial goals.
D. Signing up for an online class.
10/10
Answer:
A
Explanation:
The reason is because you can learn new techniques on money saving and budgeting.
1. WHAT IS TIME MANAGEMENT TO YOU AND WHY WOULD YOU MANAGE YOUR TIME BETTER?
EXAMPLE?
Answer:
Time management is when you use your time wisely to complete certain tasks.
Explanation:
If you manage your time wisely, you will get more work done. Not managing your time will result in incomplete tasks.
15-9: Harris Company must set its investment and dividend policies for the coming year. It has three independent projects from which to choose, each of which requires a $3 million investment. These projects have different levels of risk, and therefore different costs of capital. Their projected IRRs and costs of capital are as follows: Project A: Cost of capital: 17%; IRR: 20% Project B: Cost of capital: 13%; IRR: 14% Project C: Cost of capital: 7%; IRR: 9% Haris intends to maintain its 35% debt and 65% common equity capital structure, and its net income is expected to be $7,500,000. If Harris maintains its residual dividend policy (with all distributions in the form of dividends), what will its payout ratio be?
Answer:
Its payout ratio will be 22%
Explanation:
Residual dividend policy is a policy where a company uses the residual equity to fund dividend payments.
Accept Project A, B and C as they all have higher Cost of capital than the IRR
The total investment = $3,000,000 * 3 = $9,000,000
Dividend = Earnings - Investment in equity = $7,500,000 - 65%*$9,000,000 = $7,500,000 - $5,850,000 = $1,650,000
Dividend payout ratio = Dividend / Total earnings = $1,650,000 / $7,500,000 = 0.22 = 22%
Which action should you take if you are in debt
A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5. Eleven sellers are also willing to sell at the same prices. If the market maker is free to choose the number of transactions he can make, what is his maximum profit
Answer:
maximum profit ($30 in total) is obtained by selling 5 units
Explanation:
if the market maker buys and sells one unit, his/her profit = $15 - $5 = $10if the market maker buys and sells two units, his/her profit = $10 + ($14 - $6) = $18if the market maker buys and sells three units, his/her profit = $18 + ($13 - $7) = $24if the market maker buys and sells four units, his/her profit = $24 + ($12 - $8) = $28if the market maker buys and sells five unit, his/her profit = $28 + ($11 - $9) = $30the maximum profit per unit is obtained by selling only 1 unit, but the total maximum profit is obtained by selling 5 units.
which of the following is the process of learning how other firms do things in an exceptionally high-quality manner?
Answer: BenchMarking
A _____ is something you would like to accomplish in the near future: a day, a week, or even a few months from now.
short-term goal
long-term goal
intermediate goal
specific goal
Answer:
short term goal im pretty sure
Explanation:
Answer:
short term goal mark him brainlest though
Explanation:
Which type of manager is responsible for production and quality control?
Barnes books allows for possible bad debts. On may 7, barnes writes off a customer account of $7,000. On september 9, the customer unexpectedly pays the $7,000 balance.
The graphic below shows the details of the cash collection on September 9 that had been noted as a bad debt.
The organised record of every accounting transaction is a journal entry. It is the initial phase of accounting transaction recording. It displays every transaction that was done throughout the accounting period. Barnes Books allows for later-recoverable bad debts in the scenario described. On May 7, the business deducts a customer account. The client unintentionally settles the $7,000 amount on September 9. The figure below then shows the journal entry for receiving the bad debts amount on September 9. The graphic below is a record of the cash collected on September 9.
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fittings for GH$1,000. The useful life of the trademark is estimated to be 100 years. (1 point) ABC Ltd commenced business on 1 September, 2011. He keeps accounts to 31 December each year. The basis period for ABC Ltd for 2013 year of assessment is.. A. GH$4,500 B. GHC6,000 C. GHÇ3,000 )D. GHC3,500 E. 1/9/12 - 31/8/13 F. 1/1/13 - 31/12/13 G. 1/7/12 - 30/6/13 H. 1/6/12 - 31/5/13
The basis period for ABC Ltd, which commenced business on September 1, 2011, but keeps accounts to December 31 of each year, for the year 2013 year of assessment is F. 1/1/13 - 31/12/13.
What is the basis period?The basis period is the financial year for which a business is assessed for tax.
The basis period of a business follows the normal accounting period of the entity instead of the fiscal year of the taxation authority or the government.
For a business that commenced in 2011, but keeps accounts to December 31, the basis period for the later years agree with the accounting period ending on December 31.
Thus, we can conclude that the correct basis period is Option F.
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what are the variables the cause the demand curve to shift?
Answer:
1. Expectations about future conditions and prices.
2. Tastes
3. Population
4. Income
5. Prices of substitute or complement goods.
You are the proud owner of the Sunnyside Up Cafe. Your 15-year-old business has built up a huge local following who love to stop by for breakfast served all day, and now you'd like to create an online community of equally loyal fans. Which platform is your best option for creating a digital forum where your followers can interact with you and each other
The platform which is your best option for creating a digital forum where your followers can interact with you and each other is:
A) Social networking siteWhat is a Social networking site?This refers to the use of social media networks to share content with people and also for interactive purposes.
With this in mind, we can see that as a proud owner of Sunnyside Up Cafe, there is a need for interaction with loyal customers which has been built for 15 years, so a social networking site would be best for this.
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Suppose that a portfolio management company manages an investment fund. The fund
manager observes a bond in the market and intends to add it to the fund portfolio. The
bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a
6-years maturity. The business model is to “hold-to-maturity”. The company purchases
the bond at the beginning of the year when the market yields are 8%. After exactly 3
years of investment, market yields increase to 12%. What would be the profit or loss
amount in the income statement for that third year?
a) 1.427,92 TL loss
b) 1.470,06 TL profit
c) 8.529.94 TL profit
d) 10.000 TL loss
Answer: The correct answer is (a) 1.427,92 TL loss.
Explanation:
To calculate the profit or loss for the third year, we need to determine the market value of the bond at the end of the second year and compare it to the par value of 100,000 TL.
At the beginning of the investment, the bond has a coupon rate of 10% and a market yield of 8%, so its price is:
PV = (10000/1.08) + (10000/1.08^2) + (110000/1.08^3) = 104,406.40 TL
After 3 years, the market yield has increased to 12%, so the bond's price would have changed to reflect this new yield. To calculate the new price, we can discount the remaining coupon payments and the par value at the current market yield:
PV = (10000/1.12^1) + (10000/1.12^2) + (10000/1.12^3) + (100000/1.12^3) = 88,572.08 TL
The market value of the bond at the end of the second year is 88,572.08 TL, which represents a loss compared to the par value of 100,000 TL:
Loss = 100,000 - 88,572.08 = 11,427.92 TL
Therefore, the correct answer is (a) 1.427,92 TL loss.
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