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Hunter-Best [27]
4 years ago
11

When a bond is sold at a​ discount, the maturity value is less than the present value of the principal and interest​ payments, b

ased on the market rate of interest on the date of issue.True / False.
Business
1 answer:
sweet [91]4 years ago
5 0

Answer:

given statement is False

Explanation:

solution

As given bond sold at the​ discount

maturity value less than present value

but maturity value can not be less than present value of principal and interest

because bond sold at the​ discount

if bond sold at the​ discount  than maturity value will be greater than the resent value of future cash​ flow

so we can say that given statement is False

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Why is it important to YOU to save money ? ILL MARK BRAINLIST * How and why to save money *
dangina [55]

First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom. I would save money by keeping it secure in a special place like a wallet.

7 0
3 years ago
Read 2 more answers
A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the
Oxana [17]

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

4 0
3 years ago
A proposed project has an initial cost of $38,000 and cash inflows of $12,300, $24,200, and $16,100 for years 1 through 3, respe
In-s [12.5K]

Answer:

IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

Explanation:

given data

initial cost = $38,000

cash inflows year 1 =  $12,300

cash inflows year 2= $24,200

cash inflows year 3 = $16,100

rate of return = 16.8 %

solution

we consider here IRR is = x so

present value of inflows is equal to present value of outflows   .............1

we can say that it as

initial cost = present value

3800 = \frac{12300}{1*x} +\frac{24200}{(1*x)^2} +\frac{16100}{(1*x)^3}

solve it we get

x = 17.38%

here IRR is greater than required return by 17.38 - 16.8 % = 0.58 %

so project will accept

4 0
3 years ago
Selected information from Gerrard, Inc.’s financial activities in the year 2004 was as follows: Net income was $330,000. The tax
ValentinkaMS [17]

Answer:

$0.26

Explanation:

diluted earnings per share (EPS) = (net income - preferred dividends) / (weighted average outstanding shares + diluted shares)

net income = $330,000

preferred dividends = 2,000 x $500 x 8% = $80,000. Since the preferred stocks are convertible, they will be considered diluted shares. Therefore, no preferred dividends will be included in the calculation.

weighted average outstanding shares:

  • January 1 = 700,000 x 12/12 = 700,000
  • March 1 = 200,000 x 10/12 = 166,666.7
  • total weighted average = 866,666.7

diluted shares = 2,000 preferred stocks x 200 = 400,000

diluted EPS = $330,000 / (866,666.7 + 400,000) = $0.260526247 ≈ $0.26

8 0
3 years ago
Bonita Industries began the year by issuing $75500 of common stock for cash. The company recorded revenues of $772000, expenses
Alex

Answer:

net income = $106,000

Explanation:

net income = total revenues - total expenses = $772,000 - $666,000 = $106,000

Any additional capital raised will increase the company's cash flows (financing activity) and any dividends distributed will decrease them (another financing activity), but they do not affect the company's net income.

3 0
3 years ago
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