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alexdok [17]
3 years ago
5

Testbank Multiple Choice Question 86 Bonita Industries is constructing a building. Construction began on January 1 and was compl

eted on December 31. Expenditures were $6300000 on March 1, $5260000 on June 1, and $8450000 on December 31. Bonita Industries borrowed $3180000 on January 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 8%, 3-year, $6410000 note payable and an 9%, 4-year, $12150000 note payable. What are the weighted-average accumulated expenditures? $8318333 $9720000 $20010000 $11560000
Business
1 answer:
eimsori [14]3 years ago
4 0

Answer:

$8,318,333

Explanation:

The computation of the weighted average accumulated expenditure is shown below:

Date Amount       Capitalization period Weighted Average Accumulated Expenditures  

Mar 1 $6,300,000 10 months                  $5,250,000  ($6,300,000 × 10 months ÷ 12 months)

Jun 1 $5,260,000 7 months                   $3,068,333.33   ($5,260,000 ×  7 months  ÷ 12 months)

Dec 31 $8,450,000 0 months                    $0

Total                                                             $8,318,333

We simply multiplied the amount with the capitalization period so that the weighted average accumulated expenditure could come

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Q 1.21: henderson bait & tackle needs to purchase some supplies and inventory used in day-to-day operations of the company.
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4 years ago
A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually
skelet666 [1.2K]

Answer:

a) actual dollar = $60

b) Constant dollar of the 15th payment = $38.710

Explanation:

Facts from the question:

The Face value of the bond = $1,000

Nominal Interest rate = 12% and it compounded annually

General inflation rate = 6%

The question: Determine the 15th interest payment on the bond.

Step 1: The coupon for the amount of semi annual payment is as follows:

Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond

= (0.12/2) x 1000

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Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.

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This means the constant dollar amount on that 15th payment = $38.710

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