A. Their own, their own
Is the answer
Answer: Credit, $45,000
Explanation:
The bond payable is the interest payable on the bond and it's Bond issued value mutiply by issued rate
$50,000 * 9%* 10 years
Answer:
Here the correct statement is B) .
Explanation:
SEC ( securities exchange commission ) allows these types of private placement to be made as per the Regulation D , through the website but it is important to note that these placements can be only made to accredited investors ( these are wealthy or high net worth individuals ) and these investors would have to fill and sign the questionnaire given to them before they can enter in to password protected area.
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
Answer:
the perpetuity will pay the student 166.36 dollar per years
Explanation:
First, we solve for the amount of the original investment after 5 years:
Principal 1,642.00
time 5.00
rate 0.06200
Amount 2,218.17
<u>Then, this goes into a perpetual annuity at 7.5%</u>
2,218.17 x 0.075 = 166.3630983 = 166.36
the perpetuity will pay the student 166.36 dollar per years
