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USPshnik [31]
3 years ago
11

On January 1, the Elias Corporation issued 10% bonds with a face value of $99,000. The bonds are sold for $97,020. The bonds pay

interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is. a.$10,098 b.$9,900 c.$9,702 d.$1,980
Business
1 answer:
Vikentia [17]3 years ago
4 0

Answer:

c. $9,702

Explanation:

Elias Corporation has issued 10% bond the semi annual rate of bond is 10%. The 10% rate is divided by 2 to find the actual semi annual rate of interest on the bond. The rate of bond is 5%. The amount at which bond can be sold will be used to calculate interest expense of the bond.

$97,020 * 5% = $4,851

The annual interest expense will be, $4,851 * 2 = $9,702

The correct answer is c.$9,702

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Which of the following are true?
igor_vitrenko [27]

Answer:

  • A. The data in D3 is skewed right.
  • B. Three quarters of the data values for D2 are greater than the median value for D1 .
  • E. At least a quarter of the data values for D3 are less than the median value for D2 .

Explanation:

A Box Plot can be interpreted as follows;

The first point on the line is the minimum value.

The first end of the box is the First Quartile of the data range.

The next line is the Median.

The last end of the box is the Third Quartile.

The last point on the line is the maximum value.

Most of D3 lies on the right side of Median so it is skewed right.

The First Quartile of D2 is more than the Median of D1 which means that 3 quarters of D2 (first quartile to the maximum value) are greater than the median of D1.

D2's Median value is greater than the Third Quartile of D3 which means that more than just a quarter of D3 falls below D2's Median so option E is correct.

4 0
3 years ago
How much should you pay for a share of stock that offers a constant growth rate of 13%, requires a 18% rate of return, and is ex
marin [14]

Answer:

$44.25

Explanation:

<u>procedure 1:</u>

we can determine the present value of the stock using the following formula:

present value = future value / (1 + constant growth rate)ⁿ

  • future value = $50
  • constant growth rate = 13%
  • n = 1

present value = $50 / (1 + 13%) = $50 / 1.13 = $44.25

<u>procedure 2 (optional):</u>

future value = future dividend / (required rate of return - constant growth rate)

$50 = future dividend / (18% - 13%)

future dividend = $50 x 5% = $2.50

now we must determine the dividend for the current year:

current dividend = future dividend / (1 + constant growth rate)

current dividend = $2.50 / (1 + 13%) = $2.50 / 1.13 = $2.21

now we apply the Gordon growth model:

present value = dividend / (required rate of return - constant growth rate)

present value = $2.21 / (18% - 13%) = $2.21 / 5% = $44.25

5 0
3 years ago
Many ironworkers are also experienced in what other skills? (Select all that apply.)
Artyom0805 [142]
Welding because their constantly working on metal
7 0
3 years ago
The stockholders’ equity section of Blue Spruce Corp.’s balance sheet consists of common stock ($8 par) $1,104,000 and retained
Ne4ueva [31]

Answer:

Only the retained earning changed from $460,000 before the dividend payment to $211,600 after the dividend payment. The total shareholders' equity remain at $1,564,000 before and after the dividend payment.

Explanation:

Note: The two questions (a) and (b) in the question are the same and they just one question which is answered as follows:

Before dividend  payment

Common Stock = $1,104,000

Shares outstanding = $1,104,000 ÷ 8 = 138,000  

Retained earning = $460,000

Total Stockholders' Equity = $1,104,000 + $460,000 = $1,564,000

After Dividend

Shares outstanding  = 138,000 + (138,000 × 10%) = 138,000 + 13,000 = 151,800

Common Stock = $1,104,000 + (13,800 × 8) = $1,104,000 + $110,400 = $1,214,400

In excess of par value = 0 + (13,800 × 10) = $138,000

Total Paid-In Capital = $1,214,400  + $138,000 =  $1,352,400

Retained Earnings = $460,000 - (13,800 × 18) = $460,000 - 248,400 = $211,600

Total Stockholders' Equity = $1,352,400 + $211,600 = $1,564,000

Concluding Note

From the above, only the retained earning changed from $460,000 before the dividend payment to $211,600 after the dividend payment. The total shareholders' equity remain at $1,564,000 before and after the dividend payment.

4 0
3 years ago
Without a strong legal systems in a market economy:
STALIN [3.7K]

Answer:

<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>

Explanation:

  • As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.  
  • Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
  • Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
5 0
3 years ago
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