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3 years ago

The Waverly Brush Company issued 4,000 shares of common stock worth $200,000.00 total. What is the par value of each share?

1 answer:

wel3 years ago

4 0

The right answer for the question that is being asked and shown above is that: "c. $500." The Waverly Brush Company issued 4,000 shares of common stock worth $200,000.00 total. The par value of each share is c. $500.

The right answer for the question that is being asked and shown above is that: "c. limited-payment." With limited-payment insurance, the insured agrees to pay a specific premium each year until death.

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Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR

notka56 [123]

Answer:

9.43%

Explanation:

The computation of the internal rate of return is calculated by using the spreadsheet which is shown in the attachment

The internal rate of return is the return at which the net present value comes to zero i.e.

Net present value = 0

initial investment = Present value of cash flows after taking the discounting factor

After solving the given problem, the internal rate of return is 9.43%

5 0

3 years ago

A company issues $100,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the mark

lora16 [44]

Answer:

To find the present value of the interest payments, multiply $3,000 by the present value factor 8.1109.

Explanation:

the market price of the bonds:

present value of face value = $100,000 / (1 + 4%)¹⁰ = $67,556.47
present value of coupon payments = $3,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $24,332.70

market price = $91,889.17

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

8 0

3 years ago

In year 1, Firm A paid $50,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,140 and $7,200 d

Tatiana [17]

Solution and Explanation:

a.Compute Firm A’s net cash flow attributable to the asset purchase in each year.Year 2011:

Cost of Asset = ($50,000)

Tax Savings (Annual Depreciation x Tax Rate) $(\$ 3,140 \times 35 \%)$ = $1,099

Net Cash Flow = ($48,901)

Year 2012:

Cost of Asset = N/A

Tax Savings (Annual Depreciation x Tax Rate) ( $\$ 7,200 \times 35 \%$ ) = $2,520

Net Cash Flow = $2,520

b. Compute Firm A’s adjusted basis in the asset at the end of each year.

INITIAL COST OF ASSET = $50000

DEPRECIATION YEAR 1 = (3140)

ADJUSTED BASIS AT END OF YEAR 1 = $46860

YEAR 2 DEPRECIATION = (7200)

ADJUSTED BASIS AT END OF YEAR 2 = $39660

8 0

3 years ago

BellStar Communications is a new provider of 3D satellite TV service. It offers an extremely low introductory price for the firs

Black_prince [1.1K]

Answer: Option C

Explanation: In simple words, penetration pricing refers to pricing strategy in which an organisation initially sets the prices of its product as to create market share and to build a customer base.

After achieving a certain amount of word of mouth and awareness in the eyes of customers, organisation increases its price for a certain marginal profit.

In the given case, Bell star is doing the same functions as explained above. Hence we can conclude that company is using market penetration.

6 0

3 years ago

Milltronics Industries has 2,900 defective units of product that have already cost $14.90 each to produce. A salvage company wil

sergiy2304 [10]

Answer:

Incremental income is $34,220.00

Explanation:

Amount in $

Number of defective units (a) 2,900.00

Cost of production per unit (b) 14.90

Total cost of production (c = a x b) 43,210.00

Proceed from sale of defective product per unit (d) 5.90

Sale of defective product (e = d x a) 17,110.00

Additional cost for correction of defect (f) 5.10

Cost for correction of defect (g = f x a) 14,790.00

Selling price per unit after correction of defect (h) 22.80

Sales after correction of defect (i = h x a) 66,120.00

Incremental Income from sale (j = i - g - e)  34,220.00

5 0

3 years ago