Pearson Co issue its $199500 at a price of 97, the stated rate is 6%, the bond term is 4 years, and the market rate is 8%. Assume the term of the bonds is 4 years.
Q: ates its intrinsic value. The company has announced plans to maintain its dividend next year at…
A: The dividends are out of the net income and it depends on the company to pay dividend or not and or…
Q: Write out the journal entry that is created once an entry is made in Invoice Window.
A: Invoice: It implies to a document of commercial nature that has details related to what reflects on…
Q: Snail Company's bank statement for the month of August showed balance per bank of P44,000. Cash in…
A: The bank reconciliation statement is prepared to record the balances of cash book and pass book and…
Q: The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash…
A: The question is based on the concept of Financial Management. In order to calculate the fair value…
Q: The Bursar at Tain came up with new library project that requires an initial investment of $100 and…
A: Net present value is the distinction between both the current worth of cash inflows and outflows…
Q: Rosa Company produced 1,450 defective phones due to a production error. The phones had cost $70,000…
A: The differential analysis is performed to analyse the different alternatives available with the…
Q: Meiji Isetan Corporation of Japan has two regional divisions with headquarters in Osaka and…
A: Margin :— It is calculated by dividing net operating income by sales. Turnover :— It is…
Q: What are the effects of depreciation on the profit and loss account and balance sheet?
A: INTRODUCTION: A depreciation plan or chart makes it easier for organizations to keep track of…
Q: Which of the following statements is true? A balanced scorecard contains both customer and internal…
A: Solution:- Discussion of the following statements true or false as false
Q: Assets Canh 30 Comparative Balance Sheets 2021 PERSONAVE $ 96,700 92,000 81,800 6,200 Accounts…
A: The cash flow statement is one of the important financial statement of the business. It classifies…
Q: Below are departmental income statements for a guitar manufacturer. The company classifies…
A: DEPARTMENT CONTRIBUTED TO OVERHEAD The departmental contribution to overhead is the gross profit…
Q: Required: What is the financial advantage (disadvantage) of making the 66,000 starters instead of…
A: Solution:- Calculation of the financial advantage (disadvantage) of making the 66,000 starters…
Q: What is the difference between pegged and floating rate exchanges?
A: A nominal exchange rate that is firmly established by the monetary authority with regard to a…
Q: $145,000 560,000 830,000 75,000 86,000 13,000 49,000 unts receivable? $97,000 67,000 105,000 10,000…
A: In the indirect method of cash flows, in cash from operating activities , adjustments are made to…
Q: cost of $63,616 has an estimated residual value of $5,755 and an estimated life of 4 years or 16,212…
A: In units-of-activity method, depreciation expense is calculated on the basis of usage of units .…
Q: Which of the following will not result in an increase in return on investment (ROI), assuming other…
A: Return on funding, or ROI, is a mathematical system that traders can use to assess their investments…
Q: Explain the four factors where the premium tax credit (PTC) applies.
A: 1. Household Income: A household's Modified Adjusted Gross Income (MAGI) is used to determine the…
Q: On November 7, Mura Company borrows $240,000 cash by signing a 90-day, 11%, $240,000 note payable.…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: In the current year, Company A made the following cash purchases: 1. The exclusive right to…
A: A patent is the granting of a assets proper through a sovereign authority to an inventor. This…
Q: On the Statement of Financial Position, which of the following is true? Group of answer choices A.…
A: When a donor offers cash to a nonprofit business enterprise, they will specify how a present is for…
Q: Donald's Inc. would like to declare dividends. Partial financial information for Donald's Inc. is…
A: Introduction: Company can declare and pay dividends to the extent of amount available in the…
Q: In order to accumulate enough money for a down payment on a house, a couple deposits $374 per month…
A: A financial investment or physical asset's value on a particular date in the future is referred to…
Q: Cooperton Mining just announced it will cut its dividend from $3.82to $2.45 per share and use the…
A: COST OF EQUITY The Cost of Capital is the most important and controversial area in Financial…
Q: Ratio of FIxed Assets to long term liabilities 2. Find the ratio of liabilities to stockh
A: Fixed assets to long term liabilities represents the ratio of fixed assets available within the…
Q: Could someone please explain to me how to correctly do a deposit to my bank account from a client in…
A: Every business has been now using the modern and latest technology through which they record the…
Q: Journal entry worksheet
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Tamarisk Industries has the following patents on its December 31, 2019, balance sheet. Patent Item…
A: Assets are the resources of an organization that has economic value and the potential possibility of…
Q: Mr. Stanhope has an MBA degree from Stanford University and has successfully operated a business for…
A: Taxation seems to be the method of acquiring taxes from individuals in exchange for the usage of…
Q: Year Ended December 31, 20X6 e t of goods sold ss Profit rating Expenses fit from Operations Come…
A: The sales is very important for the company and profit earned on the sales is more profit important…
Q: If $470,000 of 10% bonds are issued at 97, the amount of cash received from the sale is Oa. $470,000…
A: Amount of cash received on issue of bond = issue price of bonds
Q: Partners Ayan and Bry share profits and losses of their partnership equally after annual salary…
A: Partnership is a form of business concern in which the partners run business to generate profit. All…
Q: Information on Cloudy's past operations follows: Installment sales Cost of sales Gross profit rate…
A: ANSWER:- 15) Total realised gross profit in 20X3 = 94,500 (option D) 16) (Loss)/ Gain on Reposession…
Q: ESSAY. Write your answer in the space provided or on a separate sheet of paper. 22) Ralph Company…
A: Goal Congruence is the concept where divisional managers work towards the decisions which are in the…
Q: John, a single father, has AGI of $83,000 in 2021. During the year, he pays $4,000 in qualified…
A: Tax credit: It implies to the amount that is allowed to be subtracted or deducted from the total…
Q: Alma Corp. issues 1,040 shares of $9 par common stock at $15 per share. When the transaction is…
A: When Common stock is issued at premium the additional amount received in Excess of Par is credited…
Q: Rich Ltd. declares a 3 for 1 stock split on its class A common shares. There are 12,000,000 shares…
A: The stock split is a method of increasing the number of outstanding shares by decreasing the value…
Q: Computer equipment was acquired at the beginning of the year at a cost of $62,544 that has an…
A: Depreciation as per straight line method = (Cost - Residual value)/Useful life
Q: Below are the Consumer Price Index inflation rates each year for the United States and Japan. Also…
A: 1.Purchasing power parities (PPPs) are the rates of currency conversion that try to equalise the…
Q: A recent annual report for Malestrom Incorporated disclosed that the company declared and paid…
A: The dividend is a method of distributing profits among the shareholders. It can be distributed by…
Q: manufacturing overhead based on normal monthly volume: Fixed ($302,300 ÷ 20,000 units) $…
A: Answer :Calculation of overhead spending variance : Fixed 302,300 Variable (5*18000) 90,000…
Q: The following information relates to last year's operations at the Legumes Division of Gervani…
A: Investment turnover = Investment turnover measures the efficiency of a company's assets to generate…
Q: Webster Company produces 36,000 units of product A, 28,000 units of product B, and 11,000 units of…
A: Lets understand the basics. In net realizable value method, by product revenue is first deducted…
Q: [The following information applies to the questions displayed below.] Hitzu Company sold a copier…
A: An expenditure relating to the repair, replacement, or reimbursement provided to a user for any…
Q: sume you have just found out you are entitle lling to take today in exchange for the future:
A: Answer : Future value = Present value * (1 + rate) ^Time Rate = 18% Time = 19 years
Q: SureLock Manufacturing Company makes and sells several models of locks. The cost records for the…
A: The relevant costs to consider when evaluating a special order are those that would increase if the…
Q: Determine the following (1-3)::: 1. What is the accounts receivable balance, net of uncollectible…
A: Given in the Question Budgeted sales at 290000 for November, 310000 for December, and 210000 for…
Q: If a credit is issued to a Vendor, how will this affect the General Ledger Account?
A: General ledger account: It implies to the main component or part of general ledger maintained by the…
Q: On July 2, 2021, Corso Inc. purchased $450,000 of Bere Corp. 5% bonds at a price of 416,528 to yield…
A: Bonds are the securities which are issued by the entity for raising funds and investors get the…
Q: e board of directors of a human resources outsourcing company has declared a dividend of…
A: Preferred shares are preferred in dividend payments and also on the liquidation also they are…
Q: AUDIT REPORT You are a senior auditor working for Fuhremann & Fuhremann, CPAs. Your staff assistant…
A: Introduction The term "audit" often refers to an investigation of financial reports. A fiscal audit…
Pearson Co issue its $199500 at a price of 97, the stated rate is 6%, the bond term is 4 years, and the market rate is 8%. Assume the term of the bonds is 4 years.
Using the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An amortization of a debt is in a form of a gradient series of P10,000 on the first year, P9,500 on the second year, P9,000 on the third year, P8,500 on the fourth year. Determine the future amount of the amortization if interest is 0.12.2. DEF Company will issue $8,000,000 in 10%, 10-year bonds when the market rate of interest is 7%. Interest is paid semiannually. Required: a. Will this interest structure result in a Premium for DEF company or a Discount? b. How much cash will be received from the issuance of the bond? c. How much will the semi-annual interest payment be on the bond?PLEASE TYPE IT AND NOT HANDWRITTEN An obligation will be amortized by quarterly payments of P5,000 for 10 years. If interest is 6% compounded quarterly, find: a. the present value of the loan b. the outstanding principal after 7 years c. the remaining liability just after the 15th payment d. how much of the 15th payment interests, and how much goes to the principal?
- Assume a 3/1 floating rate mortgage for $700,000 has an initial rate of 1.75%. The loan resets with a margin of 200 basis points applied to the one-year treasury rate upon reset. At the end of the initial three year period, the one-year Treasury is 1.50%. At the end of four years, the one-year Treasury is 2.00%. 9. What is the payment commencing in month 49? 10. What is the loan balance at the end of 60 months?1. A debt of P3,500 is to be amortized by 6 equal semiannual payments with interest at 6%compounded semiannually. Find the periodic payment and construct on amortization schedule. 2. Monthly payments of P800 each are used to settle a loan for 8 months at 8% compounded monthly. Find the present value of the loan and construct an amortization table.Bronn took out a fully amortizing, 5/1 hybrid, adjustable rate mortgage of $ 159026.13 with 18-year maturity. The interest rate is indexed to SOFR and the margin is 3%. At the time of the loan origination, SOFR was 1%. The lender, however, offers a teaser rate of 2% during the first 5 years. Note that the accrual rate is still based on the SOFR and the 3% margin. Bronn's monthly payment during the 4th year equals $ per month.
- An amortization of a debt is in a form of a gradient series of P5,000 on the first year, P4,500 on the second year, P4,000 on the third year, P3,500 on the fourth year. Determine the future amount of the amortization if interest is 0.06. Note: Interest is already shown in decimal form. Do not round in between solution. Final answer round to the nearest WHOLE NUMBERMarwick Corporation issues 8%, 5 year bonds with a par value of $1,200,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series Present value of 1 In= i= of payments) (single sum) 0.6806 5 3.9927 10 8.1109 0.6756 5 6% 4.2124 0.7473 10 8.5302 0.7441 Multiple Choice $1,200,000 $989,244 $1,609,450 MacBook AirA Ρhр 15,000.00 debt having an interest rate of 15.5% comрounded semi-annually. A regular рeriodic рayment will be done for 6 consecutive рayment and the first рayment will be рaid after 2 years. What is the time of the debt? What is the рeriodic рayment of the debt ? Make an amortization schedule.
- $60,000, 5-year bonds, with a 10% stated rate of interest are issued at $64,867 on January 1, 2021. The market rate of interest is 8%. Interest payments are made semi-annually on June 30 and December 31. How much interest expense would be recognized on the second interest payment date? Assume effective-interest amortization is used. Round your answer to the nearest dollar.PLEASE TYPE IT AND NOT HANDWRITTEN A debt of P350,000 is to be amortized by 6 equal semi-annual payments with interest at 6% compounded semi-annually. Find the periodic payment and construct an amortization schedule.ABC Marketing sold an item worth 200,000 for 250,000. As agreed 20,000 will the down payment while the balance will be evidence buy a noninterest bearing note with an implied interest rate of 9% to be paid annually within 5 years. What is the amortization schedule for the payments?