Answer:
$5,000
Explanation:
Since the payments are due semi-annually and the bond were issued on January 1, 2016 at 100, we will have to calculate the interest cash payments for the two semi-annuals in 2016. Therefore, the interest rate to use is the full annual 5% stated rate. Therefore, we have:
Interest cash payment = Bond face value × Interest rate
= 100,000 × 5%
Interest cash payment = $5,000.
Therefore, the cash interest payments in 2016 is $5,000.
Answer:
The correct answer is letter "A": resource immobility.
Explanation:
The concept of Resource Immobility states that if a resource is easy to obtain competitors are likely to imitate the firm's activities. Thus, those sources will not generate a competitive advantage. On the other hand, difficult to obtain resources make it hard for rival firms to replicate a company's operations providing them a long-lasting competitive advantage.
Real Estate Investment Trusts or REIT sometimes referred to as the "mutual funds" of the real estate business, were created in 1960 as an aspect of the federal tax law to encourage small investors to combine their resources with the resources of others so the companies could, together, raise venture capital for real estate transactions.
There is actually a lot of wan technologies that are carried over the pstn. But the first thing we have to do, is to know what does the pstn means. The pstn means Public Switched Telephone Network. Though they have some similarities, the atm and the wan are different machines.
Answer:
ROE = 16.98%
Explanation:
The question is to determine Amer Company's Return on Equity
The following steps are taken:
1) The Total Debt ÷ Total Assets = 35%
It means Total Debt ÷ 1000= 0.35
Meaning 0.35 x $1,000 = $350 and this is the total debt
2) Calculate Interest on debt
Interest on debt = Interest rate on total debt x total debt
= 4.57% x $350 = $16
3) Now calculate the Net Income from Earnings before Interest and Tax
Earnings before Interest and tax = $200
less interest $16
Earnings Before Tax $184
Subtract tax (40% of EBT) $73.6
Net income $110.4
4) Calculate the Return on Equity
= Net income/ Shareholders' Equity
= $110.4/ ($1,000-$300)
= 16.98%
