The upper class makes up about 25 percent of the population in the United States. True or False

On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January

Leno4ka [110]

Answer:

Discount on bonds issuance = $15750

Explanation:

A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,

Discount on bonds issuance = 700000 - 684250

Discount on bonds issuance = $15750

7 0

3 years ago

John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the sto

Marina CMI [18]

Answer:

Explanation:

Calculate maximum that should pay:

Compute present value of cash flows from the store, year 1 to 5 :

Annual cash flows are $70,000

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 1 to 5 years =

= $287,013.82

Compute present value of cash flows from the store for years 6 to 10

Annual cash flows are $70,000

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 6 to 10 years = annual cash flows x PVIFA (10%,5) x PVIF (7%,5)

= $70,000 x 3.79079 x 0.7130 = $189,198.33

Compute present value of cash flows from the store for years 11 o 20

Annual cash flows are $70,000

Desired rate of return on investment for 11 to 20 years is 12%

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 10

Present value of cash flows generated during 11 to 20 years = [annual cash flows x PVIFA (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

= $70,000 x 5.65022 x 0.62092 x 0.7130 = $175,100.98

Calculate present value of estimated sale amount to be received for sale of store

Present value of estimted sale amount to be received = [Estimated sale amount x PVIF (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

=$400,000 x 0.32197 x 0.62092 x 0.7130=

=$57,016.50

Calculate total maximum amount that should be paid

Particulars Amount ($)

Present value of cash flows during 1 to 5 years $287,013.82

Present value of cash flows during 6 to 10 years $189,198.33

Present value of cash flows during 11 to 20 years $175,100.98

Present value of estimated sale value $57,016.50

Maximum amount that C should pay to JD for store $708,329.63

Therefore, Maximum amount that should be paid $708,329.63

4 0

3 years ago

) The typical family on the Planet Econ consumes 10 pizzas, 7 pairs of jeans, and 20 gallons of milk. In 2016, pizzas cost $10 e

Firdavs [7]

Answer: um... Imma say 6 i guess i don't really know

Explanation:

8 0

3 years ago

Sew much fabrics buys fine linens, silks, and other fabrics from sellers in more than 30 countries to retail to local customers.

Viefleur [7K]

Sew much fabrics is an example of a company that imports.

<h3>What does import mean?</h3>

Import is when a good or service is brought into a country from a foreign country. An example of import is when a person living in the US buys silk from Italy.

Reasons for import

There may be more varieties in foreign countries.
The imported good could be of a better quality.

To learn more about imports, please check: brainly.com/question/26497713

3 0

3 years ago

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?a. An

-BARSIC- [3]

Answer:

increase in the market value per share

Explanation:

Market value per share is the price that the share of a company can be traded if it is to be sold to a willing investor in a stock market.

The market value per share is determined by the company's financial performance, favorable market information concerning the enterprise, perceived future prospects plus investors or public confidence.

One of the goals of financial management is the maximization of the shareholders wealth, this will find expression in how the business actions or inaction of the management has enriched the shareholders.

5 0

3 years ago