Answer:
Explanation:
The journal entries are shown below:
1. Bonds payable A/c Dr $1,900,000 (1,900 × $1,000)
To Discount on bonds payable $37,000
To Common stock $1,140,000 ($10 × 60 shares × 1,900)
To Additional paid-in capital in excess of par $723,000
(Being the conversion of bonds is recorded and the remaining balance is credited to the Additional paid-in capital in excess of par)
Answer:
Velocity of money = 4
Explanation:
Given:
Money supply M = 6,000
Price level P = 2
Real GDP Y = 12,000
Find:
Velocity of money
Computation:
Velocity of money = [Price level x Real GDP] / Money supply
Velocity of money = [P x Y] / M
Velocity of money = [12,000 x 2] / 6,000
Velocity of money = [24,000] / 6,000
Velocity of money = 24 / 6
Velocity of money = 4
Answer:
$8,693
Explanation:
Effective annual interets rate: AI = (1+i/m)^n - 1
i = 3*2=6%, m = 26
AI = [1+6%/26]^26 - 1
AI = 1.0617 - 1
AI = 0.0617
Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000
30,000 = ∑[X/1.0617^n}
30,000 = 3.451 * X
X = 8693.132425383947
X = $8,693
Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years
That's a statement.
If its T/F, That is true <span />
Answer:
= 11.85%
Explanation:
After tax cost of debt = (1 - tax rate) x debt
(1 - 0.21) x 15%
0.79 x 15% = 11.85%
