Hoffman Corporation retires its bonds at 106 on January 1, following the payment of annual interest. The face value of the bonds

Answer:

The price is higher than marginal revenue

Explanation:

Answer:

$58,149

Explanation:

To find the present value of the savings

Initially, we need to compute the Present worth before

Present worth before= 73,000(P/A,10%,5)

Present worth before= 73,000(3.7908)

Present worth before= $276,728

Next, we will determine the Present worth after

Present worth after= 16,000 + 58,000(P/F,10%,1) + 52,000(P/A,10%,4)(P/F,10%,1)

Present worth after= 16,000 + 58,000(0.9091) + 52,000(3.1699)(0.9091)

Present worth after=16,000+52,728+149,851

Present worth after= $218,579

The final step is to compute the Present worth of savings using this formula

Present worth of savings=Present worth before-Present worth after

Substituting into the formula

Present worth of savings = 276,728–218,579

Present worth of savings= $58,149

Thus, the present worth of the savings amounts to $58,149

Response:

Steve Jobs' return, new innovations, and Tim Cook assuming the COO role

Clarification:

Stock price variations are linked to the company’s success in achieving its goals and the belief that it will continue to thrive.

Initially, there was a notable rise in Apple’s stock from $27.97 to $702.10, marking a 25-fold increase.

This surge is attributed to Steve Jobs returning as CEO, which instilled confidence. Innovations such as the iPhone, iMac, iPod, and iTunes also contributed to enhanced performance and, subsequently, stock value.

However, after Tim Cook became COO, production was cut by 50%, leading to a decline in stock by 37% from its peak in September 2012 to $442.66 by the end of March 2013, down from $702.10.