Answer:
Coupon= $30 per period.
20 period for semi annual coupon payment.
28.148% discount rate
Explanation:
1.) Coupon rate * face value of bond = coupon
semi annual rate =6%/2=3%
Coupon= 1000 *3%= $30 per period.
2.) t= number of periods = years of maturity * coupon payment semi-annual
t= 10 * 2 = 20 periods.
3. Discount rate formula =C+[(F-P)/t] / (F+P/2)
where C=coupon payment annual
F= face value of security
P=price of security= 1000 *8%=80
t= years of maturity.
so we have⇒ 60+[(1000-80)/10]/(1000+80)/2
=152/540
=28.148%
Answer:
On October 01, 2017
The amount actually borrowed that is $ 701,000 will be recorded as liability/note payable on october 01, 2017. The following accounting entry will be passed
Debit Cash Asset $ 701,000
Credit Note payable $ 701,000
Interest recognized from October 1 to December 31, 2017
The premium amount paid on redemption will be recorded as interest over the period of time. The interest amount is
Interest = 721,000 -701,000 = $ 20,000
So this above calculated expense will be recognized as an expense over loan period.
Answer:
$28.53
Explanation:
Asonia Co. stock price will be calculated using discount factor of 9.9% which is investors required rate of return for company's stock.
Stock price = dividends * (1+r)^ - n
$4.30 (1.099)^-1 + $8.40 (1.099)^-2 + $11.25 (1.099)^-3 + $13.40 (1.099)^-4
$3.91 + $6.95 + $8.48 + $9.19
$28.53
If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
<h3>What is a Contribution Margin?</h3>
The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.
The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.
This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.
Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.
Learn more about contribution margin here:
brainly.com/question/24881206
The answer is option B. The main challenge of career planning in changing times is that you need to revise your plans often.
The world we live in is dynamic. New inventions, new technology, new methods of doing things always come up with time.
Because of this, when making a career plan, one must be fully aware that the process is not static. That is, changes would occur and as such, you have to revise your plans often so that it is in line with what is obtainable at the time.
<em>Read more on career planning here: brainly.com/question/6457203?referrer=searchResults</em>
