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3 years ago

Which of the following statement is false?

Business

2 answers:

lara31 [8.8K]3 years ago

5 0

Answer:

C) Coupon bonds always trade for a discount.

Explanation:

"A coupon bond, also referred to as a bearer bond or bond coupon, is a debt obligation with coupons attached that represent semiannual interest payments. With coupon bonds, there are no records of the purchaser kept by the issuer; the purchaser's name is also not printed on any kind of certificate. Bondholders receive these coupons during the period between the issuance of the bond and the maturity of the bond." Trade them for a discount is not a common characteristic of coupon bonds.

Reference: Chen, James. “Coupon Bond.” Investopedia, Investopedia, 18 Sept. 2019

tatuchka [14]3 years ago

3 0

Answer:

The answer is: C) Coupon bonds always trade for a discount.

Explanation:

Discount bonds: If a bond offers a coupon rate that is lower than prevailing interest rates, it will trade at a discount. Discounted bonds are currently priced lower than its original price (its par value).

Premium bonds: If a bond offers a coupon rate that is higher than prevailing interest rates, it will trade at a premium. Premium bonds are currently priced higher than its original price (its par value).

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Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual in

k0ka [10]

Answer:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

Nov 15

Dr Accounts payable 8,650

Cr Merchandise inventory 346

Cr Cash 8,304

Explanation:

Preparation of Journal entries

Based on the information given we were told that on Nov. 5 the company Purchased 900 units of product at the amount of $10 per unit which means that the Journal entry will be:

Nov 05

Dr Merchandise inventory 9,000

Cr Accounts payable 9,000

(900 units *$10 per units)

Based on the information given we were told that the company on Nov. 7 Returned 35 defective units from the the month of November 5 purchase in which they received full credit which means that the Journal entry will be:

Nov 07

Dr Accounts payable 350

Cr Merchandise inventory 350

(35*$10 per units)

Based on the information given we were told that the company on Nov. 15 Paid the amount of money due from the month of November 5 purchase in which they minus the return on November 7 which means that the Journal entry will be:

Nov 15

Dr Accounts payable 8,650

(9,000- 350)

Cr Merchandise inventory 346

(4%*8,650)

Cr Cash 8,304

(8,650-346)

8 0

3 years ago

The agency problem wherein ownership and control of a corporation are separate is associated with:_______

11Alexandr11 [23.1K]

Answer: The shareholder model of corporate governance

Explanation:

The agency problem is typically a conflict of interest in a relationship whereby a party is expected to act in the best interest of the other party. It should be noted that in corporate finance, the agency problem is a conflict of interest that takes place between the management of the company and the stockholders.

The agency problem wherein ownership and control of a corporation are separate is associated with the shareholder model of corporate governance.

7 0

3 years ago

James Perkins wants to have a million dollars at retirement, which is 15 years away. He already has $200,000 in an IRA earning 8

Lelu [443]

Solution :

Given :

James needs $ 1,000,000 after 15 years.

His IRA deposit is $ 200,000 and is earning at the rate of 8% per annum.

Maturity value of $200,000 after 15 years = $2000000 \times( 1.08)^{15}$

= $ 634,434.

Balance fund needed after 15 years = 1,000,000 - 634,434

= $ 365,566

Therefore, the future value of the annuity is :

$FV=A[\frac{(1+k)^n-1}{k}]$

Here, FV = future annuity value = 365,566

A = periodical investment

k = interest rate = 8%

n = period = 15 years

∴ $365566 = A\frac{[(1.08)^{15}-1]}{0.08}$

A = 13,464

Thus, James needs to save $ 13,464 each year end to reach his target.

4 0

3 years ago

Adrian owns an older used car that is valued at about $1,000.

Liula [17]

Answer:

Purchasing insurance can help Adrian minimize risk. Adrian’s best decision in this case is to not buy the insurance because the policy is too expensive in relation to the value of his vehicle

0 0

3 years ago

Pet Supply purchased some fixed assets two years ago at a cost of $43,800. It no longer needs these assets so it is going to sel

DiKsa [7]

Answer:

$28,483.4

Explanation:

The computation of the net cash flow is shown below;

Asset cost $43,800

MACRS Rate 0.2 0.32

8760 14016

So total depreciation is

= $8,760 + $14,016

= $22,776

Now

Book Value of the company is

= oriignal value - depreication

= $43,800 - $22,776

= $21,024

And,

Sale price = 32500

So,

Gain is

= $32,500 - $21,024

= $11,476

So,

Tax = 0.35% of 11476

= $4,016

And, finally

Net cashflows is

= Sale price - tax

= $28,483.4

6 0

2 years ago

Read 2 more answers