Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Bond carrying value = $1,470,226
Rate of interest = 8%
Rate of interest (Semiannual ) = 4%
So, we can calculate the the bond interest expense on the first interest payment by using following formula:
The bond interest expense = Bond carrying value × rate of interest (semiannual)
By putting the value we get
= $1,470,226 × 4%
= $58,809
Answer: Gus should keep the files A. and D.
Explanation:
I don’t believe that he should keep B. due to D. showing an update to B. so, he shouldn’t keep B. so that he doesn’t get confused by both B. and D. being in the files.
Answer:
what? I need points tho thanks
Answer:
Annual deposit= $37,714.37
Explanation:
Giving the following information:
The villa costs $500,000 today, and housing prices in Mexico are expected to increase by 6% per year. Manny and Irene want to make fifteen equal annual payments into an account, starting today, so there will be enough money to purchase the villa in fifteen years.
The account earns 10% per year.
First, we need to calculate the final value of the house with the following formula.
FV= PV*(1+i)^n
FV= 500,000*(1.06^15)=$1,198,279.1
Now, we can calculate the annual payments required:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,198,279.1*0.10)/[(1.10^15)-1]
A= $37,714.37
Answer:
$220.028
Explanation:
According to dividend valuation model, the price of share is the present value of all the dividends that the share will give in future.
Based on the above statement the price of the share of the OMG Corporation shall be determined as follows:
Present value of year 1 dividend=1.856(1+7.10%)^-1 $1.733
(1.60*1.16)
Present value of year 2 dividend=2.153(1+7.10%)^-2 $1.88
(1.856*1.16)
Present value of year 3 dividend=2.497(1+7.10%)^-3 $2.033
(2.153*1.16)
Present value of year 4 dividend=2.897(1+7.10%)^-4 $2.202
(2.497*1.16)
Present value of all dividends after year 4= $212.18
[2.897(1+6%)/7.10%-6%]*(1+7.10%)^-4
Price of share $220.028
