Answer:
Explanation:
The market value of debt is the present value of all future cash flows in servicing the debt.
we need to identify the present value of the future cash flows as follows
Year no of receipts Cash flow Discount factor present value
1-7 7 70 5.1185 358.296
7 1 1000 0.5649 564.926
Present Value 923.222
Annuity= P=R(1+(1+i )^-n) /i
Annuity= P=70(1+(1+8.5%)^-7/8.5% = 5.1185
Compound = S=P(1+i)
Compound =P=1000/(1+8.5%)^7 = 0.5649
the value of the bond is = 923.222
Answer: According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in the production of those goods and services "a. they can provide at a lower opportunity costs."
Explanation: The comparative advantage is the ability of a country to produce a good using relatively less resources than another. The theory of comparative advantages says that Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally be able to participate in the international market.
Answer:
1. early binding enhances performance
2. late binding gives flexibility
Explanation:
this is generally the advantage of early binding. early binding gives room for better efficiency
.This is because it would be needless to reanalyze every time whenever something is declared. Early binding is for performance.
meanwhile late binding is known to have better flexibility and gives room for more polymorphism. this binding gives extension to runtime.
Answer:
$582,100
Explanation:
Cost of land $570,000
Less;Salvage parts sold ($23,000)
Demolition of old building $33,000
Land preparation and leveling $2,100
Total cost of land $582,100
The ground breaking ceremony expenses are not capital expenditures therefore ignored in above working.
Answer:
Explanation:
The journal entries are shown below:
On March 22
Short term investment A/c Dr $18,670 (770 shares ×$24 + $190)
To Cash A/c $18,670
(Being the short term investment is purchased for cash)
On September 1
Cash A/c Dr $3,080
To Dividend A/c $3,080
(Being cash is received in respect of dividend)
On October 8
Cash A/c Dr $12,910 (385 shares ×$34 - $180)
To Short term investment A/c $9,335 ( $18,670 × 770 shares ÷ 385 shares)
To Gain on investment $3,575
(Being short term investment is sold and the remaining amount is credited to the gain on investment account)