Answer:
cash 55,110,929 debit
note payable 55,110,929 credit
--to record singing of promissory note with discounted interest--
interest expense 1.583.741,77 debit
note payable 1.583.741,77 credit
--to record accrued interest on note payable --
Explanation:
the note plus interest will be for 60 millions.
So to calcualte the isuance ofthe note we must calculate the present value of a lump sum at 12% discount rate:
Maturity 60,000,000.00
time 0.75
rate 0.12
PV 55,110,929.18
then at December 31th we solve for the accrued interest:
Principal 55,110,929.18
time 0.25 (3 months over 12 month a year)
rate 0.12000
Amount 56,694,670.95
accrued interest: 56,694,670.95 - 55,110,929.18 = 1.583.741,77
Answer:
the stock price is $45.44
Explanation:
The computation of the stock price is shown below:
Sales per share is
= Total sales ÷ stock outstanding shares
= $3,010,000 ÷ 106,000 shares
= $28.40
Now
Benchmark PS = Stock price ÷ Sales per share
Stock price = $28.40 × 1.6
= $45.44
hence, the stock price is $45.44
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Current market price (Po) = $50
Growth rate (g) = 7%
Dividend paid (Do) = $1
Required return (Ke) = ?
Po = Do<u>(1 + g)</u>
Ke - g
$50 = $1<u>( 1 + 0.07)</u>
ke - 0.07
$50 = <u> 1.07</u>
Ke - 0.07
$50(Ke - 0.07) = $1.07
50Ke - 3.5 = $1.07
50Ke = $1.07 + $3.5
50Ke = $4.57
Ke = 4.57/50
Ke = 0.0914 = 9.14%
Explanation:
The current market price of a stock equals current dividend paid, subject to growth rate, divided by the difference between required rate of return and growth rate. The current market price, growth rate and current dividend paid were provided in the question with the exception of the required return (Ke). Thus, the required return becomes the subject of the formula.
<h2>
Answer:</h2>
x = (log₅7) - 8
<h2>
Explanation:</h2>
<em>Given;</em>
= 7
<em>Take log of both sides;</em>
log₁₀() = log₁₀7 -------------(ii)
<em>From the laws of logarithm remember that;</em>
logₐ xⁿ = n logₐ x
<em>Equation (ii) can then be written as;</em>
(x + 8)log₁₀5 = log₁₀7
<em>Divide both sides by log₁₀5</em>
(x + 8) = 
-----------(iii)
<em>From the laws of logarithm, remember that;</em>
<em>Equation (iii) can thus be written as;</em>
(x + 8) = log₅7
x + 8 = log₅7
<em>Make x subject of the formula;</em>
x = (log₅7) - 8
