Answer:
Its total cash flow at the end of year 3 is:
$792.
Explanation:
a) Data and Calculations:
Maturity of bond = 5 years
Face value = $1,000
Coupon rate = 8%
Amortization schedule for each year = 20% (100/5)
Bond’s Periodic Cash flows:
End of year 1 = $200 + $80 interest ($1,000 * 8%) = $280
End of year 2 = $200 + $64 interest ($800 * 8%) = $264
End of year 3 = $200 + $48 interest ($600 * 8%) = $248
Total cash flow at the end of year 3 = $792
Answer:
C
Explanation:
Cost=10000
Accumulated depreciation=3000
Sales price=9000
Net value=10000-3000=7000
Gain=9000-7000=2000
Answer:
c. $1,300 gain
Explanation:
In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.
$7,300 - $6,000 = $1,300
The Money is the price of labour
