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Nimfa-mama [501]
4 years ago
5

On January 1, 2018, Debtor Corporation issued $2,000,000 of 20-year, 8% bonds at 96, when the market rate of interest was 8.5%.

The bonds pay interest annually on December 31. The company uses the effective interest method of amortization. How much cash will bondholders receive on December 31, 2018, the first interest payment date?
Business
1 answer:
Gnom [1K]4 years ago
4 0

Answer:

The bonholders will receive 160,000 in cash on December 31th, 2018

Explanation:

The cash proceeds will be the same regardless of the method of amortization

Face Value x interest rate = cuopon payment

2,000,000 x         8%         =        160,000

The bonholders will receive 160,000 in cash on December 31th, 2018

The market rate will be use to calculate the amortization on the bond.

<u>For the cuopon payment ,we will always use the bond interest rate and the face value.</u>

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"Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immedi
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Answer:

The correct answer is: Shareholders.

Explanation:

To begin with,<em> "Shareholders"</em> is the name that the people who own stocks in the company receives in order to know that they are the ones who put the money to keep the business going due to the fact that they invest their money by buying shares of the company with the purpose to allow them to grow and work better so the objectives are accomplished and the profits are increased. Therefore that being economically responsible has the most immediate effect on the shareholders of the company who are the ones that will suffer losses from their pockets if the managers of the organization do not act correctly.

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3 years ago
If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end
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8 0
3 years ago
Activity-based costing for a service company
inysia [295]

Answer:

A.

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

Operating room = $1,000 per operating room hour

B.

<u>Patient Putin</u>

Unit  = $1,585

Total = $10,640

<u>Patient Umit</u>

Unit  = $1,585

Total = $6,025

Explanation:

Activity rate = Total Overhead Cost / Total Activity

Room and meals=  $240 per day

Radiology =  $215 per image

Pharmacy =  $50 per physician order

Chemistry lab = $80 per test

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<u>Patient Putin</u>

                               Unit       Total

Room and meals   $240      $1,440

Radiology               $215        $860

Pharmacy                 $50       $300

Chemistry lab          $80          $40

Operating room  $1,000    $8,000

Total                     $1,585   $10,640

<u>Patient Umit</u>

                               Unit       Total

Room and meals   $240       $960

Radiology               $215       $645

Pharmacy                 $50       $100

Chemistry lab          $80       $320

Operating room  $1,000    $4,000

Total                     $1,585   $6,025

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Based on the information provided within the question it can be said that in this scenario we can conclude that the Gross Domestic Product (GDP) in the year 2008 is of $500 billion dollars. That is because the gross domestic product calculates the monetary value of all the goods and services that were produced within the nation's borders.

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