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lakkis [162]
3 years ago
9

A bond with a face value of $100,000 was issued for $93,500 on January 1 of this year. The stated rate of interest was 8 percent

and the market rate of interest was 10 percent when the bond was sold. Interest is paid annually. How much interest will be paid on December 31 of this year?
Business
1 answer:
Inessa05 [86]3 years ago
5 0

Answer:

So interest payment will be $8000

Explanation:

We have given face value of the bond = $100000

And bond is issued for $93500

Standard rate of interest = 8 %

And market rate of interest = 10 %

We have to find the interest paid

Interest payment will be given by

Interest payment = face value of bond × standard rate of interest

= $100000×0.08 = $8000

So interest payment will be $8000

You might be interested in
The cost allocation base​ ________. A. is a systematic way to link an indirect cost or group of indirect costs to cost objects B
ycow [4]

Answer:

The correct answer is letter "A": is a systematic way to link an indirect cost or group of indirect costs to cost objects.

Explanation:

Cost allocation is the method of assigning costs to cost objects. Cost objects are items or activities that are preferable to have their own costs allocated such as a product or a department within a firm. Cost allocation is a measure of profitability at the moment of evaluating a subsidiary. It is mainly used for financial reporting purposes.

6 0
3 years ago
Sharon is unhappy with her job as a salesperson at a retail store for many reasons. Yesterday a customer asked her where the sha
postnew [5]

Answer:

<u>Customer satisfaction.</u>

Explanation:

Customer satisfaction is an extremely relevant factor for a company as it can directly influence the success or failure of a business.

The whole experience that the customer will have with your company will influence their perception and decision to re-establish relationships with the organization. The company should pay attention to the set of determinants responsible for customer satisfaction, the product must meet their needs, service and service should be cordial and optimized to clarify doubts and assist in the process of purchase and customer loyalty.

So on that issue, an employee like Sharon will negatively impact customer satisfaction, which has not been answered and badly answered. What the organization can do to improve this cycle is to invest in employee training and motivational policies that help increase job satisfaction and thereby increase customer satisfaction.

6 0
3 years ago
Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ow
vlada-n [284]

Answer:

The answer to the following question is attached within a word file.

Download docx
7 0
3 years ago
Allstate shipping body forklift for $20,000. It is expected to have a five-year useful life and trade in value of $2,000. Prepar
timama [110]

In order to calculate the depreciation using the double declining balance method you must first calculate the amount of depreciate using the straight line method. After you calculate it by the straight line method, you simply need to double it for this this problem.

The original price is $20,000, and then subtract the $2,000 estimated trade in value and the answer is $18,000. This is the amount that you need to depreciate.

Straight line method: $18,000 divided by the 5 year useful life = $3,600 per year.

Double declining balance = $3,600 x2 = $7,200 per year depreciation.

Year Depreciation Amount

1 7,200

2 7,200

3. 3,600

3 0
4 years ago
Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua
Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = \frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}         ........................1

put here value we get

43.96 = \frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}

solve it we get

cost of equity =  0.121735

cost of equity = 12.16 %

8 0
3 years ago
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