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otez555 [7]
3 years ago
13

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

e, the market interest rate is 5.0 percent. Using the effective interest rate method of amortization, the carrying value after one year will be closest to:
Business
1 answer:
valentinak56 [21]3 years ago
8 0

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77  x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

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Answer: D. a series of consecutive payments of equal amounts.

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An annuity is a financial commodity that provides a fixed amount of payments, paid in equal periods, such as deposits made into savings accounts, monthly home mortgage payments, and monthly insurance payments.

Annuities are meant to be a safe way to secure a steady capital flow during people´s retirement years, as well as to avoid outliving their assets.

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3 years ago
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he following is from the 2021 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive Income Years Ended December
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Answer: The answer is given below

Explanation:

An annual report is a report that is comprehensive about the activities of a company in the previous year. The aim of a company publishing its annual report is to give the shareholders and every other interested person information about activities of the company and its financial performance.

We are told that Kaufman calculated the $83 million accumulated other comprehensive income in 2021. This was calculated as the accumulated other comprehensive income in 2020 plus the change in the net unrealized gains on the AFS investments, the net of tax of $12 in 2021 plus the other net income of 2021. This can be represented mathematically as:

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3 years ago
Consider a product with a daily demand of 400 units, a setup cost per production run of $100, a holding cost per unit of $24.00,
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3 years ago
Which of the following affects employers’ decisions on how much to pay their workers? Maximizing costs
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What  affects employers’ decisions on how much to pay their workers is : <u>Maximizing profits.</u>

<h3>What is  profit maximization?</h3>

Profit maximization can be defined as the way in which a company or an organization tend to determine the price level that enables them  to maximize profit.

Every company or organization  goals is to make profit based on this company that is determine to make profit must tend to make use of profit maximization approach.

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Therefore what  affects employers’ decisions on how much to pay their workers is : <u>Maximizing profits.</u>

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2 years ago
ethan needs to assign his team members the following tasks. one of the team members, gail, is an extrovert. which task is most a
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An extrovert is a type of personality in which people are usually outgoing and easy to talk also friendly with each other. They do not think about any consequences also they just go for the task which is there.

Moderating our team meeting would require a Gail to coordinate with various staff and departments, which would mean that he has to have experience in talking to different people. So the manager Ethan should assign this task to Gail. Therefore, option D is the correct option.

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The question is incomplete, the complete question will be:

independently analyzing the latest market research report

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moderating a team meeting to discuss how well the last development cycle went

preparing a list of questions to discuss at the next team meeting

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