Answer and Explanation:
Journal entry to record the issuance of the bonds.
A.
Jan 1
Dr cash $500,000
Cr bonds payable $500,000
B. Journal entry to record the accrual of the interest
Dec 31 2020
Dr Interest expense $25,000
Cr Interest Payable $25,000
C. Journal entry to record the payment of interest on January 1, 2021.
Dr Interest expense $25,000
Cr Cash $25,0000
Interest expense $500,000×10%×1/2=$25,000
Social safety programs that Americans pay into during their working years through taxes. Both are designed to assist older Americans and distribute benefits to the disabled and their families.
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Answer:
The correct answer is 0.4%.
Explanation:
According to the scenario, the computation for the given data are as follows:
If no debt, then required return can be calculated by using following formula:
Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium
= 6% + 1 × 4%
= 0.06 + 0.04
= 0.10 or 10%
If debt, then required return can be calculated by using following formula:
Required return ( with debt) = Risk free rate + levered Beta × Market risk premium
= 6% + 1.1 × 4%
= 0.06 + 0.044
= 0.104 or 10.4%
So, extra premium required = 10.4% - 10% = 0.4%
Answer:
The correct answer to the following question will be Option D.
Explanation:
- The theory or hypothesis that even as soon as it arrives, all institutional investors obtain as well as act on most of the necessary information or data. Even if this was purely real, there would have been no stronger investing strategy than just a coin flip.
- As per this principle, the dynamically trading share prices in such a competitive market don't vary from actual measured value or beliefs.
The other choices have no relation to the given circumstance. So choice D is the correct answer to the above.
Answer:
True
Explanation:
That is true for any product but luxury products.