Answer:
$14,887.5
Explanation:
Carrying Value of the bond is the net of Face value and any amortised discount on the bond.
Face Value of the bond = $19,000
Issuance Value = $14,300
Discount Value = $19,000 - $14,300 = $4,700
This Discount will be amortized over the bond's life until the maturity on straight line basis.
Amortization in each period = $4,700 / (8x2) = $293.75 semiannually
Until December 31, 2017 two payment have been made and $587.5 is amortized in the two semiannual periods.
Un-amortized Discount = $4,700 - $587.5 = $4,112.5
Carrying value of the bond = Face value - Un-amortized Discount = $19,000 - $4,112.5 = $14,887.5
Answer:
C) Debt increases by more than cash dividends paid
Explanation:
Based on the information given the statements that is more likely based on the below calculation will be : DEBT INCREASES BY MORE THAN CASH DIVIDENDS PAID reason been that the NET INCREASE IN THE CASH from financing activities was the amount of $4,500
Net Increase In The Cash from financing activities = $5000 - $1000 + $500
Net Increase In The Cash from financing activities= $4500
A business usually becomes listed in the Fortune 500 during its SUCCESSFUL stage.
Fortune 500 refers to the yearly list of the best and the biggest 500 companies that are doing very well in the US market world as judged by the Fortune Magazine. These companies usually have huge asset balance, which is still growing in size. The major criteria used to choose the qualified companies is the size of their revenues.
Answer:
Component cost of preferred stock is 11.4583 %
Explanation:
Given Data:
Preferred stock selling=96 percent of par.
Annual Coupon =11 percent
Required:
What would be Marme’s component cost of preferred stock?
Solution:
The formula we are going to use is:
Where:
is 11 percent annual coupon
preferred stock selling for 96 percent of par
If we convert the above percentage to dollar using the scale $1=1% then:
=$11
=$96
Component cost of preferred stock is 11.4583 %
