Answer:
$1,068.02
Explanation:
For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:
Given that,
Present value = $1,000
Rate of interest = 10% ÷ 2 = 5%
NPER = 3 years × 2 = 6 years
PMT = $1,000 × 8% ÷ 2 = $40
The formula is shown below:
= FV(Rate;NPER;PMT;-PV;type)
The present value comes in negative
So, after applying the above formula, the selling price of the bond is $1,068.02
Answer:
-5.72%
Explanation:
Total rate of return = (Total return/net loss ÷ Purchase Price) × 100 ......... (1)
Loss on sales = Purchase price - Sales price = $1102 - $989 = $113.
Net loss = Coupon received - loss on sales = $50 - $113 = -$63
Substituting the values into equation (1), we have:
Total rate of return = ((-63) ÷ 1,102) × 100 = -5.72%
Therefore, the total rate of return is -5.72%. It is negative because the coupon bond led into net loss.
The answer to the question is (C) how changing circumstances may affect the business and how the business model can be adjusted to cope with them.
Business model is defined as a model that a business uses to determine how it plans to generate revenue and in turn, profit. Another term for business model is profitability model. Thus business model risk implies risk management principles that are applied on business model contexts.
Answer:
The correct answer is c. Greenman v. Yuba Power Products, Inc.
Explanation:
Judicial recognition of the non-contractual nature of the producer's objective liability takes place in a well-known judgment pronounced with the unanimous vote (supporting the vote of Judge Traynor) of the members of the Supreme Court of the State of California, relapsed in the Greenman v case. . Yuba Power Products Inc. From this moment on, the objective nature of the producer's responsibility is clearly accepted without resorting to fictions or the "contractual mask" to which Prosser alludes when he directs his criticisms of the "guarantee" theory by postulating in its linking a pure theory of objective responsibility.
Answer:
The dividends received by the preferred stockholders in 2020 are $30400.
Explanation:
The cumulative preferred stock is the form of preferred stock that accumulates or accrues dividends in case the company does not pay or partially pay dividends to preferred stock in a particular year. This means that the dividends are accrued and the company will need to pay these dividends first in the future whenever it declares dividends.
The total dividends per year on preferred stock is,
Preferred Stock dividends = 50 * 0.06 * 7400 = $22200 per year
The preferred stock dividend that was accrued at the end of 2019 after the dividend payment of $14000 is,
Accrued dividends - Preferred stock = 22200 - 14000 = $8200
In 2020 the company will need to pay this accrued dividend along with the dividend for 2020 on preferred stock. Thus, in 2020 the preferred stock holders will receive dividends of,
Preferred stock dividend to be paid in 2020 = 8200 + 22200 = $30400