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rodikova [14]
3 years ago
5

PGP Co. expects to issue a $1,000 face-value bond that matures in 8 years. The annual coupon rate is 9% and interest payments ar

e expected to be paid annually. Similar bonds are currently priced at 101.4% of face value. Given this information, what is the required return by bond holders
Business
1 answer:
Harlamova29_29 [7]3 years ago
4 0

Answer:

Required return is 8.75%

Explanation:

Given,

FV (Face Value) is $1,000

PV (present Value) is computed as:

PV = FV × Price

= $1,000 × 101.4%

= $1,014

Nper (Number of years) is 8 years

PMT (Monthly payment) is computed as:

PMT = FV × Coupon rate

= $1,000 × 9%

= $90

r (Required return) is computed by using the excel formula:

=Rate(nper, pmt, pv, fv, type)

= Rate (8,90,-1014,1000,0)

= 8.75%

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Answer:

It would be B because these politicians would improve the roads and the means of transportation

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3 years ago
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When a practitioner is ensuring that the message he is sending to stakeholders is easy to follow, he is observing the ________ g
Rom4ik [11]

When a practitioner is ensuring that the message he is sending to stakeholders is easy to follow, he is observing the <u>C. Logic</u> guideline for effective communication.

A Stakeholder may be a wide variety of people impacted or invested in the task. As an example, a stakeholder can be the owner or even the shareholder. However, stakeholders can also be employees, bondholders, customers, providers, and companies. A shareholder can be a stakeholder.

The easy way to remember these 4 categories of stakeholders is by using the acronym UPIG: customers, providers, influencers, governance.

Stakeholders encompass all individuals or companies who have a vested interest in the performance of the business. It is vital that firms build healthful and balanced relationships with their stakeholders, as their stage of authenticity is determined by how properly they meet their stakeholders' needs.

Your question is incomplete. Please read below for the missing content.

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7 0
2 years ago
Henkes Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of
kolezko [41]

Answer:

Predetermined Overhead rate is $28.7 per unit

Explanation:

Estimated Manufacturing overhead = Estimated variable manufacturing overhead + estimated total fixed manufacturing overhead

Estimated Manufacturing overhead = ( 80,000 x $10.70 ) + $1,440,000

Estimated Manufacturing overhead = $856,000 + $1,440,000

Estimated Manufacturing overhead = $2,296,000

Estimated Labor hours = 80,000 hours

Predetermined Overhead rate = Estimated Manufacturing overhead / Estimated Labor hours

Predetermined Overhead rate = 2,296,000 / 80,000

Predetermined Overhead rate = $28.7 per unit

5 0
4 years ago
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: Acquire
cupoosta [38]

Answer:

Total Assets $84,800

Explanation:

Calculation for Maben TOTAL ASSETS

1 Cash increased $ 32,000

2 Cash increased $ 38,000

3 Cash increased by cash revenue $ 50,000

4 Cash decreased by expenses paid ($ 46,000)

5 Cash decreased by the amount of dividend ($ 1,200)

6 Cash received from issue of stock $ 22,000

7 Cash paid to reduce liability ($10,000)

8 Does not have effect on Total Assets $ -

9 It will not be considered for accounting $ -

TOTAL ASSETS $ 84,800

Therefore the amount of total assets that Maben would report on the December 31, Year 1, balance sheet will be the amount of $84,800.

6 0
3 years ago
What is Depreciating assets
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