Answer:
1.625
Explanation:
Debt to equity ratio = Debt ÷ Equity
or
1.75 = Debt ÷ Equity
or
Debt = 1.75 × Equity
also,
Total assets = Debt + Equity
or
$275 million = 1.75 × Equity + Equity
or
$275 million = 2.75 × Equity
or
Equity = $100 million
Therefore,
Debt = $275 million - Equity
= $275 million - $100 million
= $175 million
Now,
after issuance,
Total debt = $175 million + $20 million
= $195 million
and,
Equity = $100 million + $20 million
= $120 million
Therefore,
Southern’s debt-to-equity ratio after the issuance
= $195 million ÷ $120 million
= 1.625
Answer:
$54,639
Explanation:
the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows
DATA
Annual payments = 68,830
Implicit rate = 8%
Annuty factor for 4 years at 8% = 3.55710
Present value of lease payment =$246,212 (68830*3.57710
)
Year 1 Year 2
Opening balance - $177,382(w)
interest - $14,191(w)
payments $68,830 $68,830
principal payments $68,830 $54,639
closing balance $177,382(w) $122,743
Working
Closing balance = Present value of lease payment - Annual payment
Closing balance = $256,212 - $68,830
Closing balance = $177,382
Interest = closing balance x implicit rate
Interest = $177,382 x 8%
Interest = $14,190.56
I had a quiz like this back in 9th grade, even though what goes in the blank is less predictable. Glad to help :)
Answer:
1. To match your bank register with your bank statement; 2. the Deposit to account is Undeposited Funds
Answer:
Nominal rate of return= 0.0596 = 5.96%
Explanation:
Giving the following information:
Inflation averaged 3.46%
The real rate of return was 2.5%
<u>To calculate the nominal rate of return, we need to use the following formula:</u>
Real rate of return= nominal rate of return - inflation rate
Nominal rate of return= real rate of retunr + infaltion rate
Nominal rate of return= 0.0346 + 0.025
Nominal rate of return= 0.0596 = 5.96%
