Answer: the same interest income is reported each year
Explanation:
The straight-line amortization method is a simple way to amortize a bond as an equal amount of interest are allocated over every accounting period.
When using straight line amortization on premium bonds, the same interest income is reported each year. Therefore, option A is the best answer.
Answer:
$29.83
Explanation:
This question requires application of dividend discount model, according to which current value of share is present value of dividends expected in future.
where V2 is the terminal value, present value of dividends growing at constant growth rate,
V2 = Div3 ÷ (r - g)
Div3 = $2.24 × (1 + 2.8%)
= $2.30272
V2 = $2.30272 ÷ (0.102 - 0.028)
= $2.30272 ÷ 0.074
= $31.12
= 2.36 + 1.84 + 25.63
= $29.83
The correct answer is when you have large volumes of data you need to track and analyze. This is because a database is used to arrange large volumes of data so that they can be easily accessed or tracked,managed and analysed. As such, a good time to create a database will be when you have large volumes of data to track and analyse.
Answer:
$98,222
Explanation:
The computation of the free cash flow is shown below:
= Cash flow from Operating activity - purchase of equipment - payment of dividend
= $198,327 - $65,122 - $34,983
= $98,222
Simply we deduct the purchase of equipment amount and the dividend payment from the cash flow from operating activity so that the accurate amount can come.
All other information which is given is not relevant. Hence, ignored it
The purchase of equipment is the capital expenditure
