Answer:
$9,000
Explanation:
The computation of the amount of the discount on the bonds at issuance is shown below:
= Par value of the bond - issued price of the bond
= $400,000 - $391,000
= $9,000
By deducting the issued price of the bond from the par value of the bond we can get the discount amount on issuance of the bond and the same is applied above
Answer:
The option which is an example of a debt funding source can be banks, credit unions, or any external lender.
Explanation:
- Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
- It differs from equity financing which is selling shares of the company.
- Debt funding must be paid back at an previously agreed date.
- If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.
Answer:
$57.69 per share
Explanation:
The computation of the stock price per share immediately after issuing the debt but prior to the repurchase is shown below
Price per share = Value of equity ÷ number of Shares
where,
Value of equity is
= Value of operations + T-bills value - Debt value
= $576,923 + $259,615 - $259,615
= $576,923
And, the number of shares is 10,000 shares
So, the price per share is
= $576,923 ÷ 10,000 shares
= $57.69 per share
We simply applied the above formula
<u><em>Answer:</em></u>
<u><em>1. Likely the price of the stock either goes up or falls</em></u>
<u><em>2. There is no need for a stop loss order in this scenario.</em></u>
<u><em>3. 5412541.2</em></u>
<u>Explanation</u>:
1. Stock market prices are often unstable, prices can be up today, the next day they are low.
2. Arianna has already made over 100% profit from the stock since she purchased at a good low price, yesterday's stock close price was still profit for her.
3. A 10% Stop loss price would have been the idea order price rather than the $53.7353.73.
4. Remember Stop loss order are meant to reduce or minimize the loss of investor or trader, a <em>calculated level </em>of should be carefully decided.
Answer:
False
Explanation:
There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.
