Answer:
Cash Collection is $122,000
Receivable as on August 31, is $97,000
Explanation:
Total budgeted cash collection in the month of August is $122,000 and total receivables as on August 31 is $97,000.
A schedule for the cash collection is made in MS Excel file, which is attached with this answer, please find it.
Answer:
Explanation:
Base on the scenario been described in the question, yes of cause, Manuel was the holder and Patricia agreed that she signed the note. For this reason, Manuel has the right to recover the note unless Patricia established another defense. Since no defense was given, it was not useful whether Manuel was a holder in due course, against whom certain defenses could not be given.
Answer:
Cost of equity = 19.1
%
Explanation:
Cost of equity = required rate of return + flotation cost
The Capital assets pricing model would be used to determined the required rate of return
<em>The capital asset pricing model (CAPM): relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c </em>
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
DATA
E(r) =? , Rf- 3%, Rm-14% , β- 1.1, flotation cost - 4%
E(r) = 3% + 1.1× (14% - 3%) = 15.1
%
Cost of equity = required rate of return + flotation cost
= 15.1
% + 4% = 19.1
%
Cost of equity = 19.1
%
Answer:
A.Economic integration
Explanation:
Economic Integration is a trade agreement that exists among countries within the same geographic location which includes reduced or removing tariffs and other trade barriers so that there will be free flow of certain goods and services coupled with other factors of production within the region. This is important because it helps to reduce the cost involved in trade and making goods and services available within member state. This agreement is also known as regional integration because it exist between nations in the same region. For example economic integration between West African States.
Answer:
FALSE
Explanation:
As the lower coupon means there is less amount of cash subject to variation of interest rate.
We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.
If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.
