Answer: borrower or as a demander of funds
Explanation:
Bob new startup goes public and sells shares of future profits. Bob startup is best described as a borrower or as a demander of funds.
This will be considered to be a borrower or a demander of bonds due to the fact that future profits are being provided to shareholders as shares.
Answer:
D
Explanation:
Net working assets is current assets less current liabilities
Current assets include cash, cash equivalents and inventory
Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable
When inventory is purchased with cash, inventory increases and cash reduces, thus there is no change in net working capital
Net working capital can be negative or positive.
If current assets is greater than current liabilities, it would be positive, if this is not the case, it would be negative.
Answer:
The question is calculate the current price of the bond?
The answer is: Current price of the bond is $1,094.27.
Explanation:
We have:
* The current required rate of return = Real rate of return + Inflation premium + Risk premium = 3% + 4% + 3% = 10%
* Bond's coupon = Face value x interest rate = 1,000 x 11% = $110
=> Current price of the bond is the present value of its future cash flows including 30 coupon payment annually and one principal repayment at the end of 30-year time, discounted at 10%; which is calculated as:
(110/10%) x [ 1 - 1.1^(-30) ] + [1,000/1.1^(30)] = $1,094.27.
So, the answer is $1,094.27.
Answer:
The change in stockholders' equity was of 150.000
Explanation:
With the amount of sales and expenses of the year, the company had a profit of 200.000, if it pay dividends by 50.000, it means that the company retained earnings for 150.000, this is the change in the equity of the company and keep in cash in the total assets.
Answer:
b. 6 years.
Explanation:
The formula and the calculation of the payback period is presented below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $263,000
And, the net cash flow = After-tax net income + depreciation expenses
= $2,000 + $1,500
= $3,500
Now placed these values in the formula above, so the period would be equal to
= ($21,000) ÷ ($3,500)
= 6 years
