Answer: D. decrease in equity investment
Explanation:
A decrease in the owner's equity occur when a company loses money during the normal course of the business and when the owners need to move equity into normal business operations.
But in this case under the equity method, dividends declared by a subsidiary are accounted for by the parent when there is decrease in equity investment.
Equity also decreases when an owner withdraws money for personal use.
Answer:
The answer is D. 7.22 percent
Explanation:
Interest payments are being made semiannually, this means it is being paid twice in a year
N(Number of periods) = 16 periods ( 8 years x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $987
PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 16; PV = -987 ; PMT = 35; FV= $1,000; CPT I/Y= 3.61
3.61 percent is the Yield-to-maturity for semiannual
Therefore, the Yield-to-maturity of the bond annually is 7.22 percent (3.61 percent x 2)
Answer:
E. focusing on local markets whose circumstances will be most challenging to the company's business model
Answer:
€903.50
Explanation:
We use the present value formula to determine the current price of the bond which is shown in the attachment below:
Given that,
Future value = €1,000
Rate of interest = 7.6%
NPER = 15 years
PMT = €1,000 × 6.5% = €65
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the current price of the bond is €903.50