Answer:
The correct answer is letter "B": interest payments that vary by the yield to maturity each year.
Explanation:
Bonds are investments in the form of loans that companies provide. The firm pays investors a coupon yield, which is the annual or semiannual interest paid on the principal of the bond purchased. The payments continue until the bond reaches its maturity or the amount of the principal is completely paid off.
Answer:
Amount deposit = $118,411.4 (Approx.)
Explanation:
Given:
Future amount = $150,000
Rate of interest = 6% compounds semiannual
Number of year = 4 year
Find:
Amount deposit
Computation:
Compounds semiannual
So,
Rate of interest = 6% / 2 = 0.03
Time taken = 4 x 2 = 8 times
So,
A = P[1+r]ⁿ
150,000 = p[1+0.03]⁸
150,000 = p[1.03]⁸
150,000 = p[1.26677]
p = 150,000 / 1.26677
p = 118,411.393
Amount deposit = $118,411.4 (Approx.)
As a rule of thumb, an entrepreneuer should reevaluate her compensation package yearly. It's worthwhile to reevaluate because you may need to make changes to your plan if you are making more or less money. As your business grows, as an entreprenuer you are able to take a larger cut of your money or reinvest it elsewhere.
Answer:
RE decrease: 1,960,000
Explanation:
Retained earnings will decrease for the total amount of the dividends.
<u>stocks dividends</u>
560,000 shares
10% stock dividends: 560,000 x 10% = 56,000 shares
56,000 x $30 = 1,680,000 stock dividends
<u>cash dividends:</u>
560,000 x 0.50 per share = 280,000 cash dividends
Total dividends: 1,680,000 + 280,000 = 1,960,000
that will be the RE decrease
Answer:
Times interest earned (TIE) = 7.4 times
Explanation:
The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,
Times Interest Earned (TIE) = EBIT / Total Interest expense
Where,
- EBIT is the earnings of the company before interest and tax
To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:
EBIT = Net income + tax + interest expense
EBIT = 240000 + 80000 + 50000
EBIT = $370000
Times interest earned (TIE) = 370000 / 50000
Times interest earned (TIE) = 7.4 times