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2 years ago

Requirement 1. Record the transactions in the general journal

1 answer:

german2 years ago

6 0

Cash is debit amount is, 84000. Preferred stock-$50 par value is credit, 30000. Paid in capital in excess of par-preferred is credit, 54000.

What is market value?

Market value is the amount an asset would sell for on the open market, or the estimation of an equity or company's worth by the financial community.

Date Accounts title & explanation Debit Credit

cash (600×140) 84000

Preferred stock-$50 par value, 30000

Paid in capital in excess of par-preferred, 54000

Hence, the significance of the market value is aforementioned.

Learn more about on market value, here:

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A bond that has a face value of $150 maturing in one year is available for purchase for $134 . What is the interest rate offered

Norma-Jean [14]

The interest rate offered on the bond is 11.94%.

<h3>What is the interest rate on the bond?</h3>

The interest rate of the bond can be determined by calculating the yield to maturity of the bond. The yield to maturity is the interest rate that equates the price of the bond to the future value of the bond.

The yield to maturity can be determined using a financial calculator:

Cash flow in year 0 = $-134
Cash flow in year 1 = $150

YTM = 11.94%

To learn more about yield to maturity, please check: brainly.com/question/26376004

8 0

2 years ago

For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to

dolphi86 [110]

Answer:

the answer is D) all of the above are equally useful in this case

Explanation:

why? every company who is planing to offers a new good or product its important to know to which market you want to sell it, and the average age, either the company who had been working with the same product, perhaps more capacity of production in the same market, you have to do a market strategy to know if you are able to get into the new market.

5 0

3 years ago

Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 4%

morpeh [17]

Answer:

a. 10.04%

b. $82.78

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 5% + 0.72 × (12% - 5%)

= 5% + 0.72 × 7%

= 5% + 5.04%

= 10.04%

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

b. Now the intrinsic value would be

= Expected dividend ÷ (Required rate of return - growth rate)

= $5 ÷ (10.04% - 4%)

= $5 ÷ 6.04%

= $82.78

7 0

3 years ago

Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YT

IrinaVladis [17]

Answer:

the current bond price is $1,147.20

Explanation:

The computation of the current bond price is shown below:

Given that

NPER = 10

RATE = 6%

PMT = $1,000 × 8% = $80

FV = $1,000

Here we assume the future value be $1,000

The formula is shown below:

= -PV(RATE,NPER,PMT,PV,TYPE)

After applying the above formula, the current bond price is $1,147.20

5 0

3 years ago

Which of the following statements is true?a. A country cannot have comparative advantage in producing a certain item if it incur

ss7ja [257]

Answer:

. All countries can gain from trade if they all specialize in production according to comparative advantage

Explanation:

Comparative advantage is when a country produces a product at a lower opportunity cost when compared with its trading partners.

Absolute advantage is when a country produces more quantities of goods and services than its trading partners.

A country can still have comparative advantage in production if opportunity cost is increasing once it's opportunity cost doesn't become greater than that of its trading partners.

A country can have comparative advantage without having absolute advantage.

I hope my answer helps you.

4 0

3 years ago