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ra1l [238]
11 months ago
14

Several years ago, Tamika Company issued bonds with a face value of $603,000 at par. As a result of declining interest rates, th

e company has decided to call the bond at a call premium of 7 percent over par.
Required:
Record the retirement of the bonds.
Business
1 answer:
juin [17]11 months ago
7 0

Bond retirement is also known as bond reimbursement. The equalization will be repaid with interest on the reimbursement date.

<h3>When recording bond retirements, use a discount account:</h3>

Bonds are assumed to be worth $603,000, and their current book value is estimated to be $645,210. T will be paid back with a 7% premium. $42,210 is the total ($603,000 x 7%). The bond guarantor must give the investor $65,210 ($603,000 + $42,210) on the date of reimbursement. The $42,210 excess payment should be viewed as bad luck for the bond call.

<h3>Here are the journal entries to reflect bond retirement:</h3>

Bonds payable are debited by $603,000

Debit: $42,210 is the loss on bond call.

Citation: Cash $642,210 = [$603,000 x (1 + 0.07)]

To know more about bond reimbursement  visit: brainly.com/question/28198103

#SPJ4

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What is the expected return of a portfolio with 75% in asset A and 25% in Asset B?
kifflom [539]

Answer: 3.5%

Explanation:

Expected return if there is a Boom:

= (0.75 * 0.15) + (0.25 * 0.05)

= 0.1250

Expected return if things go Bust:

= (0.75 * -0.05) + (0.25 * 0.05)

= -0.025

Expected return of Portfolio = ∑(Probability of market state * expected return of market state)

= (0.4 * 0.1250) + (0.6 * -0.025)

= 3.5%

6 0
3 years ago
Ben &amp; Jerry’s Homemade, Inc., the Vermont-based manufacturer of ice cream, frozen yogurt, and sorbet, was known for having a
PolarNik [594]

Answer:

Five Cultural Dimension are discussed as under:                    

Explanation:

Geert Hofstede's five cultural dimensions standard is used for understanding cultural differences and highly valued because it provides the understanding of the culture of a particular market and these are as under:

<u>Number 1. Power Distance</u>

The Power Distance talks about how much inequality is accepted in the culture by the dominant players of the society. The way the society handles the issues tells about how they handle inequalities.

<u>Number 2. Individualism versus collectivism</u>

The individualism dimension is talks about how much an individual interest are important as opposed to the group interests. The higher value of individual as opposed to the group interest is Individualism and lower value of individual as opposed to the group interest is Collectivism. It basically represents how much the individual values the interest of a group when these interest are in conflict with their interest. Similarly it also tells how much the group values the interest of an individual when these interest are in conflict with their interest.

<u>Number 3. Masculinity</u>

The masculinity dimension is all about the things and values in a culture that are considered very important and has greater influence of masculine side. The dimension basically considers the preference of values in the society which includes social work, heroism, Patriotism, etc.

<u>Number 4. Uncertainty Avoidance</u>

The uncertain avoidance dimension tells about the risks and uncertainty that the dominant players of the society considers in policy reforms and are concerned with the issues mitigation.

<u>Number 5. Indulgence</u>

The indulgence dimension means how much an individual or the society as a whole are are capable to control their desires and impulses. This also means how much their desires are valuable than others and how they are going to achieve it in practical life.

4 0
3 years ago
All of the following are assumptions facing opposing forces of reducing costs and adapting to local markets that international b
Radda [10]

Answer: Lowering international synergy and cost via the value chain matrix

Explanation:

Theodore Levitt came up with some assumptions facing opposing forces of reducing costs and adapting to local markets that international business people should be aware of which include;

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  • Having to supply the world can lead to Economies of scale in production and marketing due to the larger market.

Lowering international synergy and cost via the value chain matrix is not one of the assumptions espoused by Theodore Levitt and so is the correct answer.

8 0
3 years ago
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