Answer:
$12,341.80
Explanation:
The computation of the minimum selling price for the bond is shown below:
Semi-annual = 10% ÷ 2 = 5%
Semi-annual compounding periods = 7 × 2 = 14
Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% × (1 ÷ 2) = $330
as we know that
Here We assume the selling price be S
The Present worth of the bond = PW of future cash flows
$9,500 = $330 × P/A(5%, 14) + S × P/F(5%, 14)
$9,500 = $330 × 9.898641 + S × 0.505068
$9,500 = $3,266.55 + S × 0.505068
S × 0.505068 = $6,233.45
= $12,341.80
Answer:
$19.95
Explanation:
Breakeven is where when total Cost = Total Revenue,
Let Selling Price = X
Total Revenue = Total cost
X*800 = 10,600+6.70*800
800x = 15960
Hence, selling Price(X) = 15960/800 = $ 19.95
Answer:
P = 40 - <u>2</u>QD
Explanation:
Given;
QD = 20-0.5P ................................. (1)
FFrom equation (1), we can now solve for P by first rearranging as follows:
0.5P = = 20 - QD
Divide through by 0.5, we have:
(0.5 / 0.5)P = (20 / 0.5) - (1 / 0.5)QD
P = 40 - 2QD
Therefore, the missing value is 2 and the answer is given as follows:
P = 40 - <u>2</u>QD
Answer:
$110,000
Explanation:
Net value of assets = Fair value of assets - Fair value of liabilities
= $770,000 - $190,000
= $580,000
Fair value of goodwill:
= Purchase price - Net value of assets
= $690,000 - $580,000
= $110,000
Therefore, the amount of goodwill acquired by Flounder is $110,000.
Answer:
The amount realized by Casey in the exchange $ 4700
Explanation:
Fair market value of stock received = $4000
Add: cash in transaction that qualifies for deferral under section 351 = $400
Add: assumed mortagae = $600
Less: selling expense = $(300)
Amount realized by casey in exchange = 4000 + 400 + 600 - 300
= $ 4700