Answer: A correlation of 1.00 among demand in two
Explanation:
Answer:
Since the market value equals face value,coupon rate =yield is 75/1000=7.5%
That is 7.5% is before tax cost of floating the bonds
At tax rate of 30%,after tax cost of floating bond =7.5%*(1-30%)=5.25%
However,with a flotation cost of 2%,the before tax cost of flotation is calculated using below formula found in the explanation section.
((75+(1000-980)/25)/(980+1000)*2)=7.66%
Since tax rate remains 30%,the after tax cost of floating the bond with floating cost of 2% is: 7.66%*(1-30%)=5.36%
Explanation:
(Interest payment+((Par value-Net Proceds Value)/number of yr)/(Net Proceds+Par value)/2
Answer:
d. handle Preincorporation transactions.
Explanation:
Promoters are those who undertake in the setting up of a company. They also does the Preincorporation work before the company is set up like floatation, incorporation, promotion and seek people's help to invest money in the formation of the company.
Stages involved in the formation of a company are
-Promotion,incorporation,capital set up and final commencement of business. The work of a promoter here is the promotion promotion of the company to be set up.
Promoters perform some other functions like identifying business ideals, investigation of business to be formed, ensure name approval and preparing documents necessary for the formation of the company.
Some of the liabilities of promoters are as follows;
- Exercise due diligence and care while performing as a promoter
-Responsible for handling Previous corporation contracts
-Secret profit should not be made by a promoter prior to the setting up of the company
Answer:
Long 5 November fates for wheat today, counterbalance position on September 2020, purchase wheat in the spot showcase in September 2020.
Explanation:
The risk included is upward development in the value, the helpful situation in prospects would be taking long position. Since, the fates are accessible for November month, take long situation on November and balance the situation in September by taking short situation for November month and purchase the wheat in the spot market.
Answer:
$439,610
Explanation:
Preparation for the current assets section of the balance sheet
Current assets
Cash $32,000
Accounts Receivable$111,900
Allowance for Doubtful Accounts($9,080)$102,820
($111,900-$9,080)
Inventory $295,000
Prepaid Insurance $9,790
Total current assets $439,610
($32,000+$102,820+$295,000+$9,790)
Therefore the current assets section of the balance sheet is $439,610
