Answer:
E. have a sinking fund provision
Explanation:
Callable bonds are the one wherein the issuer/borrower has an option to redeem the bonds anytime after an initial stipulated period. In case of such bonds, if the issuer decides to redeem the bonds, the holders have to accept the redemption value.
Usually, when market rate of interest on such bonds falls below the coupon rate of such bonds, the issuer redeems such bonds. Thus, such bonds are beneficial to the issuer.
Call protection refers to the period within which such bonds cannot be called or redeemed.
Sinking fund provision refers to transferring a portion of money during the duration of such callable bonds to a separate reserve known as sinking fund, which is created for the purpose of redemption of funds. So when such bonds are to be called, the total money transferred to sinking fund reserve would be raised and used for payment to bondholders.
Creation of such a reserve helps the issuer avoid the pressure of lump sum payment as periodically funds are set aside for the purpose of redemption.
Answer:
The answer is <u>"a. 8.13%".</u>
Explanation:
Given that;
d0 = $1.75
p0 = $40.00
g = 3.6% = 0.036
By using the formula;
Price of the stock = (Dividend this year)(1+g) ÷ (r - g)
By putting the values;
40 = (1.75)(1+0.036) ÷ (r - 0.036)
r - 0.036 = (1.75)(1.036) ÷ 40
r - 0.036 = 1.813 ÷ 40
r - 0.036 = 0.045325
r = 0.045325 + 0.036
r = 0.081325 = 0.081325 x 100
<u>r = 8.13%</u>
*internal recruitment
Internal recruiting is the process of hiring someone from your existing workforce for a new or vacant position
Answer:
Bad debt expense for 2016 should be: c. $8,520
Explanation:
As of December 31, 2016, Amy Jo's Appliances had accounts receivable of $313,000 and the allowance for uncollectible accounts should be 3% of accounts receivable
Bad debts are estimated: 3% x $313,000 = $9,390
Amy Jo's Appliances had $870 in the allowance for uncollectible accounts
Bad debts expense = $9,390 - $870 = $8,520
The entry will be made:
Debit Bad debts expense $8,520
Credit Allowance for uncollectible accounts $8,520
I would say D, you don’t need a million dollar death benefit if you have no one to claim it.
