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3 years ago

The Value of a Bond is tied to the Dividend rate. True or false

Business

1 answer:

PilotLPTM [1.2K]3 years ago

7 0

<u>Answer:</u> False. The Value of a Bond is not related to the Dividend rate.

<u>Explanation:</u>

Bond rates are inversely related with the interest rates in the market and not dividend rates. Bonds yield interest for the investment and not dividends. Dividends are paid for shares. Dividend rates affects the share price and not Bond value in the market.

The interest rates of the Bonds can be fixed rates or fluctuating rates. It depends on the type of the security issued. As the interest rates are fluctuating then the risk for the investors increase.

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On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value o

Vilka [71]

Answer:First Year Depreciation= $84,000

Second Year Deprecation= $78,400

Explanation:

Using Double declining

We have that :

Depreciation value = Cost - Salvage value

$280,000 - $40,000 =$240,000

Since machine is expected to depreciate for 5 years, Annual depreciation = 240,000 / 5 years

= $48,000

Annual Depreciation Rate = 48,000 / 240,000 = 20%

Therefore, Double declining = 20 x 2 = 40%

First Year Depreciation: from April to December

= 40% x 280,000 x 9/12 months

= $84,000

Second Year Deprecation:

= 40% x (280,000 - 84,000)

= $78,400

4 0

2 years ago

State 5 advantage and 5 disadvantages of trade unions.

Nady [450]

Answer:

5 advantages/ higher wages, better benefits, your representatives, fair pay, better environment

Explanation:

5 disadvantages/ high labor cost, law suits, abritrations, and members can legally strike

3 0

3 years ago

Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price

Mashcka [7]

Answer:

d. $4,500

Explanation:

The computation of depreciation expense on the new equipment is shown below:-

For computing the depreciation expense on the new equipment first we need to find out the Depreciation per annum which is here below:-

Depreciation per annum = (Cost - Residual value) ÷ Life

= ($76,000 - $4,000) ÷ 8

= $72,000 ÷ 8

= $9,000

Depreciation for 1 year calendar (July 1 to Dec 31) = Depreciation per annum × 6 months ÷ Total number of months in a year

= $9,000 × 6 ÷ 12

= $4,500

So, the depreciation expenses for the year end up-to 31st Dec is $4,500

8 0

3 years ago

3. Working with Numbers and Graphs Q3 Suppose that a small business sells 975 units of goods per month at $30 per unit. The unit

Salsk061 [2.6K]

Answer:

economic profit = $11225

Explanation:

given data

sells = 975 units

cost = $30 per unit

cost of producing goods = $15

implicit costs = $3,400

solution

total revenue = 975 × 30 = $29250

and total cost = 975 × 15 = $14625

so here Total profit will be as

Total profit = $29250 - $14625 = $14625

so here economic profit will be

economic profit = Total profit - implicit costs

economic profit = $14625 - $3,400

economic profit = $11225

6 0

3 years ago

On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,

Vlad [161]

Answer:

Explanation:

The journal entries are shown below:

1. Notes receivable A/c Dr $450,000

To Cash A/c $450,000

(Being the notes receivable acceptance is recorded)

2. Interest receivable A/c Dr $40,500

To Interest revenue $40,500

(Being the interest is collected)

Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (9 months ÷ 12 months)

= $40,500

The 3 months is calculated from April 1 to December 31

3. Cash A/c Dr $504,000

To Notes receivable A/c $450,000

To Interest receivable A/c $40,500

To Interest revenue A/c $13,500

(Being cash collected recorded)

Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (3 months ÷ 12 months)

= $13,500

The 3 months is calculated from December 31 to April 1

6 0

3 years ago