Answer:
Price of the Bond is $868.82
Explanation:
Market Value of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
Market Value of the Bond = C/2 x [ ( 1 - ( 1 + r/2 )^-2n ) / r/2 ] + [ $1,000 / ( 1 + r/2 )^2n ]
Whereas
C = coupon payment = $110.00 (Par Value x Coupon Rate)
n = number of years = 7
r = market rate, or required yield = 14% = 0.14
P = value at maturity, or par value = $1,000
Price Value of the Bond = $110/2 x [ ( 1 - ( 1 + 14%/2 )^-2x7 ) / 14%/2 ] + [ $1,000 / ( 1 + 14%/2 )^2x7 ]
Price Value of the Bond = $55 x [ ( 1 - ( 1 + 7% )^-14 ) / 7% ] + [ $1,000 / ( 1 + 7% )^14 ]
Price of the Bond = $481.0+$387.82
Price of the Bond = $868.82
Answer:
Conditional Fee Estate
Explanation:
Based on the information provided within the question the term being described in the question is called a Conditional Fee Estate. This is (like mentioned in the question) similar to a fee simple except the property must eventually be passed on to the heirs. Which is why it is named as Conditional, because failure to do so will eventually cause the termination of the interest.
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Answer:
B. It does not consider past earnings and performance.
Explanation:
The formula use the expected nextyear dividends,
the expected growth on the dividends
and the cost of capital.
It doesn't include anything related to previous earnings and performarce. Like net income, net loss, increase in equity, increase in assets or any other variance about the company's composition of his capital and income.
<span>Michael Phelps needs to make swimming more accessible, and in that, I specifically mean more visible. Michael Jordan brought basketball to new heights and became a celebrity outside the game. That elevated both him and his sport. Phelps can do that, but he's yet to.</span>
Answer:
$78,199
Explanation:
If the market price of common stock is $165 per stock, then selling 500 common stocks should = $82,500
If the market price of preferred stock is $230 per preferred stock, then selling 100 preferred stocks should = $23,000
If we add both we would get $105,500. If we want to allocate the proceeds proportionally according to their market prices:
common stocks = ($82,500 / $105,500) x $100,000 = $78,199
preferred stocks = ($23,000 / $105,500) x $100,000 = $21,801
the journal entries should be:
- Dr Cash account 78,199
- Cr Common Stock account 5,000
- Cr Capital Paid-in Excess of Par Value (Common Stock) account 73,199
- Dr Cash account 21,801
- Cr Common Stock account 10,000
- Cr Capital Paid-in Excess of Par Value (Preferred Stock) account 11,801
