Answer:
amortization on discount on BP 400
Explanation:
When there is a difference between the face value and the issuance proceeds from the bond a premium or discount is created.
When the proceeds are above, there will be a premium and the interest expense will be lower thant the actual cash outlay on the bond.
When theface value is above the proceeds, there is a discount.and expenses are higher than cash payment to bondholders.
In this case the expense is higher so there is a discount.
Answer:
PV = $78.46153 rounded off to $78.46
Explanation:
A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,
PV = Cash flow / r
Where,
- r is the required rate of return
PV = 5.1 / 0.065
PV = $78.46153 rounded off to $78.46
Answer:
C
Explanation:
because I feel that many individuals would select the most basic option, such as A or B.
He will ask his brother to help him with his homework but exclude watching tv and playing video games until he finishes the homework
Answer:
profit margin = 23.33%
Explanation:
profit margin = net profit / net sales
- net profit = $2,800
- net sales = $12,000
profit margin = $2,800 / $12,000 = 0.233333 = 23.33%
The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.
