Answer:$27.78
Explanation:
Expected value of debt after one year = (40* .60)+(15*.40)
= 24 + 6
=$ 30
Current value of debt = Value at 1year / (1+r)^n
= 30/ (1+.08)^1
= 30 / 1.08
=$ 27.78
Answer:
The statement is: False.
Explanation:
Business is one of the fields that require paperwork and reports to be transmitted seriously because of the type of information handled. <em>Inflation rates, the annual Gross Domestic Product (GDP) </em>or <em>a country's economic policy</em> are typical topics dealt in this field. For that reason, business writers <em>must be formal</em> without being afraid of using technical terminology where necessary.
Answer:
The bond interest expense to be shown in profit or loss as t 30 June 2021
$9,838.56
Explanation:
The bond interest expense is the actual finance cost of using the funds made available by bondholders while the coupon payment is the portion of the finance cost paid to them periodically.
Interest expense=bonds cash proceeds*yield to maturity*6/12
bonds cash proceeds is $163,976
yield to maturity is 12%
interest expense=$163,976*12%*6/12=$9,838.56
Firm b pays a constant dividend (D0) = $9.50
Number of years (N) = 11 years
Rate of return on the stock ( R ) = 11%
The share price of the stock (P0) = Present value of dividend for 11 years at 11%
P0 = D0*PVIFA (k%,n)
P0 = $9.50*PVIFA(11%,11)
P0 = $9.50*6.20625
P0 = $58.96
Hence, the price of the stock is $58.96
