Answer:
6%
Explanation:
Given the following :
Amount of bond issued = $10,000,000
Cash paid = $300,000
Term of bond = 10years
Semiannual interest pay
The stated annual rate of interest on the bond can be calculated thus :
Rate of interest ;
Cash paid / Amount of bond issued
$300,000 / $10,000,000
= 0.03
0.03 * 100%
= 3% (semiannual interest)
Therefore, annual rate of interest :
Semiannual rate * 2
3% * 2 = 6%
Answer:
b
Explanation:
when firms enter into an industry, there are more firms competing for customers. This would shift the demand curve to the right as supply increases. An increase in supply would lead to a reduction in price.
If firms leave the industry, there would be a reduction in supply and price would increase
Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta
hjlf
Answer:
The earnings per share figure is $1.89
Explanation:
Sales of $602,000
Costs of $256,000
Depreciation expense of $62,500
Interest expense of $29,500
Tax rate of 40 percent.
-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense
= $602,000 - $256,000 - $62,500 - $29,500
= $254,000
Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400
Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000
= $1.89
The elasticity price will drop lower
