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Lana71 [14]
3 years ago
15

Stanford issues bonds dated January 1, 2015, with a par value of $500,000. The bonds' annual contract rate is 9%, and the intere

st is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $463,140.
1. What is the amount of the discount on these bonds at issuance?

2. How much total bond interest expense will be recognized over the life of these bonds?

3. Prepare the amortization of the bond discount for the first payment period, using the effective interest method to amortize the discount.
Business
1 answer:
sveta [45]3 years ago
6 0

Answer:

Explanation:

Discount on bond = Par value of bond - Issued price of bond = 500,000-463,140=36,860

2)

500,000*0.09 = 45,000

22,500 semiannually

Amount repaid:

Six payments (22500*6)  135,000

Add: Maturity value 500,000

Total amount repaid 635,000

Less: Amount borrowed (463,140)

Total bond interest 171,860

Total bond interest expense recognized 171,860

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Analysis reveals that a company had a net increase in cash of $22.420 for the current year. Net cash provided by operating activ
antoniya [11.8K]

Answer: 4,840

Explanation: Analysis reveals that a company had a net increase in cash of $22,310 for the current year.

Therefore,

The year-end cash balance -  the beginning cash balance = $22,310

The beginning cash balance = The year-end cash balance - $22,310

The year-end cash balance is $27,150

The beginning cash balance =  $27,150 - $22,310 = $4,840

8 0
3 years ago
New Age Electronics expects to earn $100,000 this year. Earnings will grow 3% indefinitely if the firm makes no new investments.
vampirchik [111]

Answer:

5.7 1

Explanation:

Given:

  • Earning expect: $100,000
  • Grow rate: 3% = 0.03 (g)
  • Discount rate: 10% = 0.1 (r)
  • Number of shares: 250,000

We need to find the EPS because all of the earnings are paid out as dividends

= $100,000/250,000 shares

= $0.4

=> Current price:

P = D1 / (r-g)

<=> P = 0.4 (0.1 - 0.03) = 5.7 1

So the price per share of stock is  5.7 1

Hope it will find you well  

4 0
3 years ago
Read 2 more answers
Joe Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,950 and variable expens
8_murik_8 [283]

Answer:

Decrease

Explanation:

Calculation to determine overall break-even point for the entire company

Contribution margin for C90B = ($19,950-

$5,985)/$19,950

Contribution margin for C90B = 70%

Contribution margin for Y45E =( $26,190- $10,476)/$26,190

Contribution margin for Y45E= 60%

Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%

4 0
2 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
Aneli [31]

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

5 0
3 years ago
How did Selfridge’s idea of discounted merchandise affect the retail world as a whole?
bagirrra123 [75]

Answer:there’s all of them word it differently please

Explanation:

Lesson two unit lab for advertising sales promotion

Profits not always the point

1) Consistent, Competitive & Profitable

2)doing good

3)finding a purpose

4. Values and purpose

5)profit is definitely an added perk, if your company is making good profits then you can offer incentives such as bonuses or other things for your employees to do their best every day.

Secrets of selfridges

1)he had an approach to marketing he drew people in

2)he advertised in a newspaper he would fly the flag above the shop he wrote articles defending their cause

3. It made him popular with women shoppers when things turned violent people protected his store

4. He treated everyone the same this was revolutionary because the classes were separated so it was integrating the classes and treating them all the same even though that wasn’t everyone’s outlook on it

5. Sales became a worldwide tradition

5 0
3 years ago
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