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2 years ago

A bond with a par value of $5,000 is quoted at 103.936. What is the dollar price of the bond?

Business

1 answer:

DochEvi [55]2 years ago

6 0

Answer:

C. $5,196.80

Explanation:

Calculation for the dollar price of the bonds

Let find the dollar price of the bonds using this formula

Dollar price=Per value bond amount × The Per value quoted percentage 103.936/100=1.03936

Dollar price =$5,000×1.03936

Dollar price =$5,196.80

Therefore the dollar price of the bonds will be $5,196.80

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Indicate which of the following items would be reported in the balance sheet. A. Net income D. Accumulated depreciation G. Inter

nordsb [41]

Answer:

B. Retained Earnings

D. Accumulated Depreciation

F. Wages Payable

H. Interest Payable

Explanation:

Retained earnings will be reported in the Equity section of the balance sheet.

Accumulated depreciation will be reported in the Fixed assets section of the balance sheet and will be used to calculate Net Book Value.

Wages and Interest payable are both current liabilities to reflect that the company owes wages and interest payments.

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2 years ago

Annual maintenance cost for a particular section of highway pavement are $3,000.The placement of a new surface would reduce the

UkoKoshka [18]

Answer:

$17,877

Explanation:

initial outlay = ?

net cash flows years 1 to 5 = $3,000 - $400 = $2,600

net cash flows years 6 to 10 = $3,000 - $800 = $2,200

assuming that the discount rate is 6%, we need to determine the maximum amount of initial investment that would result in the NPV = 0

in order to do this we have to calculate the present value of the future cash flows:

PV = $2,600/1.06 + $2,600/1.06² + $2,600/1.06³ + $2,600/1.06⁴ + $2,600/1.06⁵ + $2,200/1.06⁶ + $2,200/1.06⁷ + $2,200/1.06⁸ + $2,200/1.06⁹ + $2,200/1.06¹⁰ = $17,877

that means that the maximum amount that can be invested = $17,877, and that way the NPV = 0

7 0

3 years ago

The property appraisal district for Marin County has just installed new software to track residential market values for property

Mama L [17]

Answer:

Equivalent annual cost = $16,502.89

Explanation:

Equivalent annual cost = Present Value of cost / Annuity factor

Present value of cost:

PV of additional cost =50,000 ×1.05^(-10)=30,695.66

PV of maintenance cost

First four years= 5,000× (1-1.05^(-4))/0.05=17,729.75

From year 5 to infinity = (8,000/0.05)× 1.05^(-4)=131,632.39

PV of maintenance cost = 17,729.75 + 131,632.396= 149,362.14

PV of costs = 150,000 + 30,695.66 + 149,362.14= 330,057.8112

Annuity factor = 1/r = 1/0.05= 20

Equivalent annual cost = 330,057.8112 /20=$16,502.89

Equivalent annual cost = $16,502.89

4 0

3 years ago

IM JUST GIVING AWAY POINTS!!!!!!

katrin2010 [14]

Answer:

I DONT NEED IT I DONT NEED IT I NEEEED ITTTTTTTT

5 0

3 years ago

Read 2 more answers

Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1

Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

$\frac{57,000*(1 - 0.23)}{0.13}$

= $\frac{57,000*0.77}{0.13}$

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.30}$

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.1}$

= $438,461.54

5 0

3 years ago