A. $2164.89
Basically just subtract, 3,678.89-1514 = 2,164.89
Answer: 6.5%
The yield to maturity is 6.496% (approximated to 6.5% to nearest tenth)
Explanation:
Using the formula (semi annually YTM)
YTM = C + (fv - pv) /t ÷ (fv + pv)/2
C= coupon rate = 7%(1000)= $70
fv = face value = $1,000
pv = price value = $1,032
t = Time to maturity in years = 8years
C + (fv - pv) /t = 70 + (1000–1032)/8
= 70 – (32 /8) =66
(fv + pv) /2 = (1000 + 1032) /2
= 2032 / 2
= 1016
YTM = 66 / 1016
YTM = 0.06496
In % = (6496 / 100,000) × 100
= 6.496%
Approximately.... 6.5%
Answer:
a. Michael's personal assets are not recorded on the company's balance sheet:
Explanation:
the question in incomplete, so I looked it up:
Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Identify the principle or assumption that best matches the situation:
In accounting, the economic entity principle states that a company's financial records are separate and distinct from the financial records of its owners. Even though Michael is the owner of company, his personal assets should not be included in the company's financial statements.
Answer:
0.22
Explanation:
Calculation for the weight on common equity
Using this formula
Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)
Where,
Common Equity=1.2
Debt =1.1
Preferred Equity=3
Let plug in the formula
Weight of common equity = 1.2/(1.1+ 3+ 1.2)
Weight of common equity=1.2/5.3
Weight of Common Equity=0.22
Therefore the weight on common equity will be 0.22
