1). Merton enterprises has bonds on the market making annual payments, with 13 years to maturity, $1,000 par value, and selling for $825. At this price, the bonds yield 7 percent. what must the coupon rate be on Merton's bonds?

2). Bonds of Zello Corporation with a par value of $1,000 sell for $1,080, mature in 18 years, and have a 7% annual coupon rate paid annually, what is the yield to maturity? what is the current yield? what is the capital gains (loss) yield?

3) CIR , inc, has 8 percent coupon bonds on the market that have 12 years left to maturity. The bonds have $1,000 par value and the YTM on these bonds is 10.5 percent. if the bonds make annual coupon payments, what is the current bond price? if the bonds make semi-annual coupon payments, what is the current bond price?

Question 2.

In 20X1, Don Blackburn, president of Price Electronics, received a report indicating that quality costs were 31% of sales. Faced with increasing pressures from imported goods, Don resolved to take measures to improve the overall quality of the company's products. After hiring a consultant in 20X1, the company began an aggressive program of total quality control. At the end of 20X5, Don requested an analysis of the progress the company had made in reducing and controlling quality costs. The accounting department assembled the following data:

Sales Prevention Appraisal Internal Failure External Failure

20X1 $1,000,000 $10,000 $20,000 $160,000 $120,000

20X2 1,200,000 50,000 30,000 120,000 100,000

20X3 1,400,000 70,000 60,000 70,000 50,000

20X4 1,200,000 80,000 30,000 50,000 40,000

20X5 1,000,000 100,000 10,000 24,000 16,000

Required:

1. Compute the quality costs as a percentage of sales by category and in total for each year. Round your answers to two decimal places.

Prevention Appraisal Internal Failure External Failure Total

20X1 % % % % %

20X2

20X3

20X4

20X5

2. Prepare multiple-year trend graph for quality costs, both by total costs and by category in your own paper. Using the graph, assess the progress made in reducing and controlling quality costs. Does the graph provide evidence that quality has improved? Explain.

Quality costs overall have (Pick One: Decreased or Increased) . Real evidence of this change stems from the fact that (Pick One: External Failure and Appraisal, Internal Failure and Appraisal, or Internal and External Failure) costs have (Pick One: Decreased or Increased) the most.

3. Using the 20X1 quality cost relationships (assume all costs are variable), calculate the quality costs that would have prevailed in 20X4.

Prevention Appraisal Internal Failure External Failure Total

20X4 $ $ $ $ $

20X5

By how much did profits increase in 20X4 because of the quality improvement program? Repeat for 20X5.

20X4 $

20X5 $

Part 3.

The following information is for Sunny Day Real Estate:

Sunny Day Real Estate

Balance Sheet

December 31, 2015

Cash $ 25,000 Accounts Payable $ 60,000

Prepaid Insurance 30,000 Salaries and Wages Payable 15,000

Accounts Receivable 50,000 Mortgage Payable85,000

Inventory 70,000 Total Liabilities 160,000

Land Held for Investment 85,000

Land 120,000

Buildings $100,000Common Stock $120,000

Less AccumulatedRetained Earnings 250,000370,000

Depreciation (20,000) 80,000

Trademark70,000 Total Liabilities and

Total Assets $530,000 Stockholders' Equity $530,000

The total dollar amount of assets to be classified as property, plant, and equipment is

a. $200,000.

b. $220,000.

c. $285,000.

d. $305,000.

Answer rating: 100% (QA)

Question 1 Bond Valuation 1 Merton Enterprises Use the bond price formula Price Coupon Payment 1 1 Y... View the full answer