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Crank
3 years ago
9

On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $340 million. The bonds mat

ure on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30.
Required:
Determine the price of the bonds on September 30, 2018. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)
Business
1 answer:
Marat540 [252]3 years ago
6 0

Answer:

The price of the bond is $281.6 million

Explanation:

In order to calculate the price of the bond we need to know its par value/future value which is given to us as $340 million, the interest rate which is also given to us as 10%, the payments which are 8% of the face value and number of periods to maturity. However because this is a semi annual bond we will have to adjust the interest rate, payments and number of periods accordingly.

Interest = 10/2= 5% because semi annual

Payment = 0.08* 340 million *0.5= 13 .6 million

Number of periods = 20*2=40

Now we will input the following into a financial calculator in order to find the price of the bond.

FV= 340 million

I=5

N= 40

PMT= 13.6 million

Compute PV=281.6 million

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Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer
timurjin [86]

Answer:

d. Evaluate segment attractiveness

Explanation:

The STP process helps to find your customers and decide the best way to target them. The step of the process that develops descriptions of the different segments is evaluate segment attractiveness as in this step the description of the segments along with market information and research results are generated to evaluate each segment.

6 0
3 years ago
Nelson Company experienced the following transactions during Year 1, its first year in operation.Issued $9,200 of common stock t
nikitadnepr [17]

Answer:

the net cash flow from operating activities for the year 1 is $1,100

Explanation:

The computation of the net cash flow from operating activities is shown below:

= Cash collection from account receivable - cash paid for the operating expenses

= $3,500 - $2,400

= $1,100

Hence, the net cash flow from operating activities for the year 1 is $1,100

We simply applied the above formula so that the correct value could come

And, the same is to be considered

4 0
3 years ago
Let $S$ be the set of complex numbers of the form $a + bi,$ where $a$ and $b$ are integers. We say that $z \in S$ is a unit if t
lakkis [162]

Answer:

Number of units possible in S are 4.

Explanation:

Given <em>S</em> is a set of complex number of the form a+bi where <em>a</em> and <em>b</em> are integers.

z\in S is a unit if w\in z exists such that zw=1.

To find:

Number of units possible = ?

Solution:

Given that:

zw = 1

Taking modulus both sides:

|zw| = |1|

Using the property that modulus of product of two complex numbers is equal to their individual modulus multiplied.

i.e.

|z_1z_2|=|z_1|.|z_2|

So,

|zw| = |1|\\\Rightarrow |zw| =|z|.|w| =1\\\Rightarrow |z|=\dfrac{1}{|w|}......... (1)

Let z=a+bi

Then modulus of z is   |z| = \sqrt{a^2+b^2}

Given that a and b are <em>integers</em>, so the equation (1) can be true only when |z| = |w| =1 (Reciprocal of 1 is 1). Modulus can be equal only when one of the following is satisfied:

(a = 1, b = 0) ,  (a = -1, b = 0), (a = 0, b = 1) OR (a = 0, b = -1)

So, the possible complex numbers can be:

1.\ 1 + 0i = 1\\2.\ -1 + 0i = -1\\3.\ 0+ 1i = i\\4.\ 0 -1i = -i

Hence, number of units possible in S are 4.

6 0
4 years ago
The useful life of a new plant asset _____. is the same as the asset's total productive life. might not exceed one year. might b
gulaghasi [49]

Answer:

The correct answer is letter "C": might be estimated based on the experience of others or on engineering studies and judgment if the company does not have past experience with a similar asset.

Explanation:

A company's assets represent the<em> cash, patents, accounts receivable, equipment, plants, </em>and <em>land</em>, among others, useful for the firm to generate profit. When it comes to plant assets, they are considered fixed assets for cost accounting purposes and are nothing but the <em>land, buildings and machinery</em> useful for manufacturing.

<em>Calculating the useful life of a plant asset can be complicated and may require engineering studies. However, if the expertise of an employee is good enough to determine it the firm must take advantage of this strength but if there is nobody with this capability the institution should look for someone who does moreover when it does not have experience computing the useful life of such assets.</em>

8 0
3 years ago
What is the price of a share of common stock that has an expected dividend of $3.00, a tax rate of 30%, a required return of 15%
Semmy [17]

Answer:

Current price of the share common stock will be $30

So option (c) will be correct answer

Explanation:

We have given expected dividend D_1=$3

Required rate of return = 15 % = 0.15

Tax rate = 30 %

Growth rate = 5 %

Beta = 2

We have to find the price of the share

Price of the share is given by p_0=\frac{D_1}{R_E-g}=\frac{3}{0.15-0.05}=$30

So current price of the share stock will be equal to $30

So option (C) will be correct answer

3 0
3 years ago
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