2 years ago

Monetary payments a firm makes to pay for resources are called

Business

1 answer:

timurjin [86]2 years ago

5 0

Answer: Explicit Costs
I hope it helps

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On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature

Sauron [17]

Answer:

The bonds were issued at $87,590,959

Explanation:

The bonds will be issued at the present value of the coupon and maturity discounted by the market rate

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 6,000,000.000 ( 100 million x 6%)

time 30 (2051 - 2021)

market rate 7% = 7/100 = 0.07

$6000000 \times \frac{1-(1+0.07)^{-30} }{0.07} = PV\\$

PV $74,454,247.1010

PV of the maturity

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 100,000,000.00

time 30.00

rate 0.07

$\frac{100000000}{(1 + 0.07)^{30} } = PV$

PV 13,136,711.72

Total current value of the bonds:

PV coupon $ 74,454,247.1010

PV maturity $<u> 13,136, 711.7155 </u>

Total $87,590,958.8165

8 0

2 years ago

You are a financial manager. your assistant tells you that there will be a cash flow gap next month, meaning that cash outflows

sashaice [31]

The answer is greater than cash inflows. The explanation behind this is cash flow gaps happen when cash outflows are greater than cash inflows. Cash flow budgets assist financial managers determine whether the business needs to seek outside sources of funds beyond sales to manage projected cash shortages.

3 0

3 years ago

Bay Manufacturing Co. purchased a 3-month U.S. Treasury bill. In preparing Bay's statement of cash flows, this purchase would:A.

Lesechka [4]

Answer:

A. have no effect.

Explanation:

The US Treasury Bill was purchased at short-term

So it would not affect the company's cash balance.

The rule for short-term invstment is to have litle risk

and a mature of less than 90 days

the US TB fullfil both, it has no risk and matures within 90 days It is considered a cash equivalent.