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AVprozaik [17]
3 years ago
8

Unsubsidized Stafford Loans:

Business
1 answer:
mariarad [96]3 years ago
6 0
I believe the answer should be A.
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Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon
nlexa [21]

Answer:

Cash proceeds is $37,702,607.23  

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24  

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23  

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36  

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36  

premium amortized=$214,869.64  

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

                           =$1,874,386.88  

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2  

                                                           =$1,885,130.362

Bond expense for the first payment=  37,487,737.59  *10%/2  

                                                           =$ 1,874,386.88  

First year bond interest expense= 1,874,386.88+1,885,130.362  

                                                      =$ 3,759,517.24  

                                                     

Find attached schedule in addition

Download xlsx
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3 years ago
Which following statement about FAFSA process are TRUE?
aleksklad [387]
FAFSA stands for Free Application for Federal Student Aid. It is a form that can be prepared annually by current and prospective college students  in the United States to determine their eligibility for student financial aid. Hope this helps.
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Who is a better president Biden or trump ?? Just to see why some people support whoever they support.... but Biden 2020 (HONEST
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Bashar Assad is the best
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3 years ago
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• Identify where Moisturizing Black Soap Shampoo is currently positioned in the product life cycle.
Scorpion4ik [409]
I believe the Moisturizing Black Soap Shampoo which is capable of both moisturizing and cleansing at the same time, had long been introduced in the industry. This product is currently in its maturity stage as many are still unaware of its existence. Thus, the need for further advertising. 
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3 years ago
If inventory is being valued at cost and the price level is steadily rising, which of the three costing methods (FIFO, LIFO, wei
Nat2105 [25]

Answer:

LIFO                

Explanation:

It will be the one that give higher Cost of goods sold. We also know that:

Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory

So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.

Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.

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