Answer:
$210,000
Explanation:
No market value was been given for the bonds.
Therefore the amount attributable to the warrants (shareholders' equity) =
Market price of each warrant was $3 ×50 detachable stock warrants per bond
=$150
Issued $1,400,000/$1,000 bond
=$1,400
Hence:
$150 × 1,400 bonds
= $210,000.
Therefore the amount that the bond should issue if proceeds increase shareholders' equity is $210,000
1 Euro = $1.30 USD or $1.00 USD = 0.77 Euro (this means more
US Dollar is needed in exchange with Euro and lesser amount of Euro is needed in exchange with US
Dollar)
US dollars strengthens by 10% compared to Euro.
1Euro = $1.30 USD --> $1.30*0.10
= 0.13 --> $1.30-0.13 = $1.17
$1.00 USD = 0.77 Euro --> 0.77*0.10 = 0.077 --> 0.77+0.077 = 0.847 Euro or 0.85 Euro
The new exchange rate will be 1 Euro = $1.17 USD or $1.00
USD = 0.85 Euro (this means that US economy is performing well, thus lesser US
Dollar is needed in exchange with Euro and more Euro is needed in exchange with
US Dollar)
Answer:
I am willing to pay $1,202,235.89 for this annuity.
Explanation:
Calculate Present value of future cash flow to calculate the price for the annuity should be paid now.
Monthly receipt = PMT = $200,000
Number of years = n = 25 years
Rate of return = r = 16.25% = 0.1625
PV = PMT x [ 1- ( 1 + r )^-n )] / r
PV = $200,000 x [ 1 - ( 1 + 0.1625 )^-25 ) ] / 0.1625
PV = $200,000 x [ 1 - ( 1.1625 )^-25 )] / 0.1625
PV = $1,202,235.89
What do you mean if it’s the definition of a word is it Exchange ?
