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dolphi86 [110]
3 years ago
5

Assume you invest money in a bond that will pay you $250,000 in four years. the bond has an annual interest rate of 5%. you do n

ot receive interest payments while you own the bond; it is zero-coupon. what is the bond's present value?
Business
1 answer:
Gre4nikov [31]3 years ago
6 0
The formula of the present value of the bond is

Pv=Fv÷(1+r)^t
Fv 250000
R 0.05
T 4 years

Pv=250,000÷(1+0.05)^(4)
Pv=205,675.6 round your answer to get 205676
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Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased f
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If Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

First step is to calculate the cash flow to creditor  

Cash flow to creditors   = $21,700 + $29,571  

Cash flow to creditors   = $51,271

 

Second step is to calculate the cash flow to Stockholders

Cash flow to Stockholders =$28,400 - $25,500  

Cash flow to Stockholders =$2,900

Now let determine the cash flow from assets using this formula

Cash flow from assets = Cash flow to creditors + Cash flow to stockholders

Let plug in the formula  

Cash flow from assets = $51,271 + $2,900  

Cash flow from assets = $48,371

Inconclusion if Green Co. paid $28,400 in dividends and $29,571 in interest over the past year. During the year, net working capital increased from $13,986 to $18,719.  During the year, the company issued $25,500 in new equity and paid off $21,700 in long-term debt. What the company's cash flow from assets will be is: $48,371

Learn more here:

brainly.com/question/11009567

6 0
2 years ago
the term service economy is used to describe the trend in which business have shifted from primary production and manufacturing
Aleks [24]

Answer:

Yes. It is true. the shifting from manufacture to services is the idea implicit in the term "service economy"

Explanation:

The constant grow of services in the industrialization process lead to the creation of this economy.

7 0
3 years ago
Required information The Foundational 15 [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to
Romashka-Z-Leto [24]

Answer:

$5,000

Explanation:

Sales $20,000

Variable expenses $12,000

Contribution margin $8,000

Fixed expenses $6,000

Net operating income $2,000

margin of safety in $ = current sales level - break even point

margin of safety in % = (current sales level - break even point) / current sales level

first we need to calculate the contribution margin per unit = $20 - $12 = $8 per unit

break even point = fixed costs / contribution margin = $6,000 / $8 = 750 units

sales level at break even point = 750 x $20 = $15,000

margin of safety in $ = $20,000 - $15,000 = $5,000

margin of safety = ($20,000 - $15,000) / $20,000 = $5,000 / $20,000 = 25%

5 0
3 years ago
Which of these is an example of a trade restriction?
Alex787 [66]

Answer:

A tariff on imported cars

Explanation:

5 0
3 years ago
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On January 2, 2021, L Co. issued at face value $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. N
Eduardwww [97]

Answer:

$1.3

Explanation:

The computation of diluted earnings per share is shown below:-

a. Statement showing adjusted net profit

Net income                                            $2,000

Interest expenses                                  $800

($20,000 × 4%)

Less: Tax relating to interest expense $200

($800 × 25%)

Adjusted Net profit                                 $2,600

b. Statement showing weighted average number of common stock shares

Shares of common stock        1,000

Debentures converted into

common stock shares             1,000

Total number of weighted

shares                                       2,000

Therefore,

Diluted earning per share = Adjusted net profit ÷ Number of weighted average shares

= $2,600 ÷ 2,000

= $1.3

Therefore for computing the diluted earning per share we simply applied the above formula.

5 0
3 years ago
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