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KATRIN_1 [288]
3 years ago
5

On June 1, 2018, Dirty Harry Co. borrowed cash by issuing a 6-month noninterest-bearing note with a maturity value of $560,000 a

nd a discount rate of 5%. Assuming straight-line amortization of the discount, what is the carrying value of the note as of September 30, 2018?
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Answer:

PV 550,506.64

Explanation:

Nominal \times (1 - \: discount \: rate)^{time} = \: Present \: Value

560,000 \times \: (1-0.05)^{4/12} = PV

<em>PV = 550,506.64</em>

<u>We can convert the discount rate to interest rate and reach the same value:</u>

i= \frac{d}{1-d} = 0.05/0.95 = 0.052631578

\frac{Nominal}{(1+rate)^{time}} = PV

\frac{560,000}{(1+0.052631578)^{1/3}} = PV

<em>PV = 550,506.64</em>

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Treasury stock that was purchased for $2,500 is sold for $3,000. As a result of these two transactions combined, a.income will b
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Answer:

The stockholder's equity will be increased by $500

Explanation:

While stockholders equity is the amount of assets available to shareholders after all liabilities have been settled , treasury stock is the stock that is bought back by the issuing organisation with the aim of reducing the number of outstanding stock in the open market.

Looking at the scenario given , it was an indirect way of raising fund and increasing the equity of the stockholders equity as the treasury stock was later resold at a higher price.

Therefore , the stockholder's equity increases by 3,000- 2500 = 500

4 0
3 years ago
suppose you pay $9,400 for a $10,000 par treasury bill maturing in 6 months. what is the annualized holding period return for th
Leni [432]

The annualized holding period return for this investment is 13.17%.

<h3>Define annualized total return.</h3>

The fund's annual return is calculated using the annualized total return to show the rate of return required to generate a cumulative return. A holding period is the duration of time an investor keeps an investment in their portfolio or the interval between buying and selling a security.

The geometric average of yearly returns for each year during the investment period is known as the annualized return. When comparing two investments with different time periods or examining an investment's performance over time, the annualized return can be helpful.

Annualized Return =(Future value + Present value) ^ (1 / N) - 1

= [10,000/9,400]^12/6 - 1

= (1.0638298)²-1

= 1.1317 - 1

= 13.17%

To learn more about to calculate annual return, visit:

brainly.com/question/17023498

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4 0
1 year ago
On January 1st, 2019, Pizza Company awarded 5 million of its no par common shares to key personal. The award is subject to forfe
Allisa [31]

Answer:

A. Debit Compensation Expense $10,000,000

Credit PIC-Excess Par $10,000,000

Explanation:

The total cost of the stock options granted is allocated to the respective years in which the stock compensation relates as below:

Total stock compensation=market value per share on grant date*number of stock options

Total stock compensation=$10*5,000,000=$50,000,000

compensation expense allocated per year=$50,000,000/5

compensation expense per year=$10,000,000

6 0
3 years ago
When companies follow the key factors of Corporate Social Responsibility, a __________ usually results, thus __________.
KengaRu [80]

Answer:

positive public image, attracting more customers

Explanation:

7 0
3 years ago
Research indicates that male entrepreneurs tend to start their first significant venture in their middle 30s, while women entrep
Dmitry [639]

Answer:

False

Explanation:

According to Pamela Webbers research in the U. S

40% of men started their first entrepreneurial venture before the end of their 35th year, while only 33% of women fell into this category.

4 0
3 years ago
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