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ycow [4]
3 years ago
8

Canterbury Co. issues a discounted, non-interest-bearing note in exchange for borrowed funds. Choose whether the cash received w

ill be higher or lower than the face value of the note, and whether the effective annual interest rate will be higher or lower than the discount rate: Cash Received vs. Face Value of Note Effective Rate vs. Discount Rate a. Higher Lower b. Lower Higher c. Lower Lower d. Higher Higher
Business
1 answer:
tia_tia [17]3 years ago
4 0

Answer:

b. Lower Higher

Explanation:

As non interest bearing notes are issued on deep discounted value. The face value of the note is discounted to calculate the cash receipt from the issuance. So, the cash received will be higher than the face value of the note.

If the non interest bearing note is issued on a discounted value the effective interest rate will be higher than the discount rate of the bond because the investor demands the required rate of return which is used to discount and calculating effective rate using discounted value will result the higher rate.

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Outline one factor that might be helpful about having a clear target market
Usimov [2.4K]

Answer:

Being able to find other entrepreneurs that are interested in the same target market, learning from their experience, asking for their help and building PR relations

7 0
3 years ago
Crane Company purchased $1080000 of 8%, 5-year bonds from Swifty, Inc. on January 1, 2021, with interest payable on July 1 and J
nasty-shy [4]

Answer: $27,864

Explanation:

The amount that should be recorded as other comprehensive income is the fair value less the sales price and the amortized premiums to reflect the true value of the investment,

= 1,164,000 - 1,129,896 - 3,048 - 3,192

= $27,864

$27,864 is the amount Crane Company should report as other comprehensive income and as a separate component of stockholders’ equity.

6 0
3 years ago
the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities, such as trade sh
Len [333]

Through transient actions like trade fairs and event sponsorships, sales promotion is a tactic that encourages customer purchase and dealer engagement.

<h3>What is Sales Promotion?</h3>

A transitory campaign or offer is used by a company as part of a sales promotion to raise interest or demand in its product or service.

A company may decide to utilize a sales promotion (or "promo") for a variety of reasons, but the main one is to increase sales. Sales increases could be required to meet a quota as a deadline draws near or to spread word of a new product.

Let's examine several sales promotion types in more detail, as well as the advantages and disadvantages of adopting each style of promotion.

12 different categories of sales promotions exist. Although not all of them are appropriate for every industry, product, or service, each one offers distinct opportunities to increase sales and forge stronger bonds with clients by utilizing various sales psychology techniques. Each presents a comparison of sales methodologies and offers an unusual perspective on spin selling.

To learn more about the, Sales Promotion visit:

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8 0
2 years ago
What do investors use the income statements of organizations for?
Ivenika [448]

Answer:

Investors use income statements to determine the profitability of a company over time. ... This is the amount that a company would pay shareholders, per share, if the company paid out all of its net income as dividends.

Explanation:

5 0
3 years ago
A holder of Rainbow Funds convertible bonds with a $1,000 par and a $1,100 price can convert the bond to 25 shares of common sto
omeli [17]

Answer:

22.22%

Explanation:

Currently Rainbow's stocks are priced at $36 per stock.

If the holder can convert his $1,100 bond into 25 stocks, that means that each stock should be worth at least $44 (= $1,100 / 25).

So the current stock price should increase by $8 (= $44 - $36) in order for a trade to be attractive, $8 represents a 22.22% increase (= ($8 / $36) x 100)

7 0
3 years ago
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