Answer:
d. sinking fund.
Explanation:
A bond refers to a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.
Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.
A sinking fund is a provision of a bond indenture which is designed to ease the burden of principal repayment by spreading it out over several years.
<em>Hence, a sinking fund is generally viewed or assumed to protect the bondholders such as creditors or investors because the fund set aside would serve as a collateral incase the bond issuer can't pay in the future. </em>
Answer:
correct option is a. −$59.03
Explanation:
given data
Old cost of capital (r) 8.00% New cost of capital (r) 11.25%
year 0 1 2 3
cash flow -$1000 $410 $410 $410
solution
we know that here old cost of capital (r) NPV will be
old cost of capital (r) NPV = cash flow 0 year + cash flow × 
put here value
old cost of capital (r) NPV = -1000 + 410 × 
old cost of capital (r) NPV = $56.61
and
new cost of capital (r) NPV will be
new cost of capital (r) NPV = cash flow 0 year + cash flow ×
put here value
new cost of capital (r) NPV = -1000 + 410 × 
new cost of capital (r) NPV = -$2.42
so difference is
Difference = -$2.42 - $56.61
Difference = -$59.03
so correct option is a. −$59.03
When a company has both the common and preferred stock, then, its ROE must be adjusted by subtracting the preferred stock balance from the total stockholders' equity and subtracting preferred stock dividends from net income.
The ROE means Return on equity.
Return on equity is used to measure the profitability of a business in relation to its equity.
If the company have common and preferred stock, then, its ROE must be adjusted by subtracting the preferred stock balance from the total stockholders' equity and subtracting preferred stock dividends from net income.
Therefore, the Option A and C is correct.
Missing options includes <em>"A) subtracting the preferred stock balance from the total stockholders' equity, B) adding the preferred stock dividends to net income, C) subtracting preferred stock dividends from net income
, D) adding the preferred stock balance to total stockholders' equity"</em>
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Answer:
$4,600
Explanation:
Casualty loss deduction = Adjusted basis - insurance compensation = 5800-1200= $4,600
