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Mariana [72]
3 years ago
6

Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization sch

edule from issuance until maturity:
Date Cash Effective Decrease in Outstanding
interest interest balance balance
1/1/2021 $207,020
6/30/2021 $7,000 $6,211 $789 206,230
12/31/2021 7,000 6,187 813 205,417
6/30/2022 7,000 6,163 837 204,580
12/31/2022 7,000 6,137 863 203,717
6/30/2023 7,000 6,112 888 202,829
12/31/2023 7,000 6,085 915 201,913
6/30/2024 7,000 6,057 943 200,971
12/31/2024 7,000 6,029 971 200,000
What is the annual stated interest rate on the bonds?
a. 3.5%
b. 6%
c. 7%
d. none of the above
Business
1 answer:
Kobotan [32]3 years ago
6 0

Answer:

c. 7%

Explanation:

According to the given scenario, the computation of the annual stated interest rate on the bonds is shown below:-

Sated interest Rate = Cash interest ÷ Face Value of the bond × 2

= $7,000÷ $200,000 × 2

= 7%

Therefore for computing the annual stated interest rate on the bonds we simply applied the above formula. hence the correct option is c

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why do you think business organization need to hire people? write at least three sentence in your answer sheet.pls​
vladimir1956 [14]

Answer:

So why does a company hire a person?

Explanation:

It isn’t to have more people around. The goal of any company isn’t to rack up its number of employees. In fact, the goal of most companies is generally the exact opposite to that, to have the fewest employees possible it needs to be successful.

Less and less do companies hire because they need a very specific task done. In the days of old, companies would hire someone to do the same task over and over again, like hammering the same nail to connect the same two parts all day long. Most of those jobs now are automated, as employers have found cheaper and often more productive alternatives to humans for that work.

No, to understand why employers hire, instead of just using a piece of software or a robot, one first has to understand the unique value proposition a human has. What is it? Well, really it has everything to do with our brain, and our unique ability to conjure up creative solutions to complex problems.

An employer hires a person because their unique value proposition, i.e. generally their ability to think, fixes a business problem they face and there are no other cheaper or more effective alternatives.

For example, a company hires a marketer because they face a business problem: a lack of customers. The marketer’s job is to increase the amount of customers anyway they can, whether it be through email marketing, social media, publicity stunts, etc. The marketer’s job is to constantly solve a problem – in this case getting more customers – that cannot be solved by a machine.

Because most of the jobs that require minimal thought have become or soon will become automated, the jobs that are left require someone who is creative, can learn quickly and is always willing to adapt to new problems thrown their way. So the question therein lies for the employer: how do you figure out who those people are?

The answer is not to look at a pile of resumes and select the two or three best to bring in for an interview. The answer is to screen all candidates through an interview, perhaps best done using a program like VoiceGlance, and ask them challenging questions that reveal those candidates’ line-of-thinking. With that information, companies can discover the employees they really want – the problem solvers – who will lead them to success.

3 0
3 years ago
Read 2 more answers
Trew Company plans to issue bonds with a face value of $902,000 and a coupon rate of 6 percent. The bonds will mature in 10 year
Agata [3.3K]

Answer:

$807,992

Explanation:

issue $902,000 with a 6% semiannual coupon and 10 year maturity. coupon payment = $27,060

if the annual market interest rate = 7.5%, the bonds should be sold at a discount:

issue price = present value of face value + present value of interest payments

  • present value of face value = $902,000 / (1 + 3.75%)²⁰ = $431,961
  • present value of annuity = $27,060 x {1 - [1 / (1 + 3.75%)²⁰]} / 3.75% = $376,031

issue price = $431,961 + $376,031 = $807,992

the journal entry should be:

Dr Cash 807,992

Dr Discount on bonds payable 94,008

    Cr Bonds payable 902,000

5 0
3 years ago
Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into ora
Maurinko [17]

Answer:

Bing can immediately sue for breach of contract

Explanation:

Based on the scenario that is being described, Bing can immediately sue for breach of contract. Breaching a contract is when one party in a binding agreement fails to deliver according to the terms of the agreement. When Dill made an anticipatory repudiation, he basically stated that he does not intend to live up to the obligations of the contract that he had agreed to, therefore breaching the contract and becoming liable.

4 0
3 years ago
Consider an investor facing a 38% marginal tax rate who purchases a tax-exempt issue with a yield of 4.25%. What is equivalent t
myrzilka [38]

Answer:

Option D

Explanation:

We can calculate the  equivalent taxable yield of investor facing a 38% marginal tax rate investment as follows

DATA

Tax rate = 38%

After tax yield = 4.25%

Solution

Let's suppose the equivalent taxable yield is x then

x(1-0.38)=4.25

x(0.62)= 4.25

x = 6.85%

Option D would be the correct answer

8 0
3 years ago
On September 1, 2021, Hiker Shoes issued a $108,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial B
bearhunter [10]

Answer:

effective interest rate = 4.75 %

Explanation:

given data

principal = $108,000

time = 8 months = \frac{8}{12} year

rate = 10%

solution

we get here first interest that is

interest = principal × rate × time .................1

put here value

interest = $108,000  × 10% × \frac{8}{12}

interest = $7200

so here effective interest rate will be here as

effective interest rate = \frac{interest}{principal- interest} × time  ...........2

put here value

effective interest rate = \frac{7200}{108000-7200}  ×  \frac{8}{12}

effective interest rate = 0.04761

effective interest rate = 4.75 %

6 0
3 years ago
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