Answer:
$90,900
Explanation:
Cost of truck = $303,000
Expected millage = 114,000 miles
Residual value = 0
Millage cover in first year = 34,000 miles
Depreciation is the systematic allocation of cost to an asset based on usage.
The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year
= (34,000/114,000) × 303,000
= 0.30 × 303,000 (intermediate calculations rounded to two decimal places)
= $90,900 (to the nearest dollar)
Answer:
The total amount of cash received is $91,350,000
Explanation:
The amount of cash proceeds realized from the bond issuance is the 99% of face value of $90 million plus the coupon interest due from January 2018(date of the bond) to April 1 ,2018(the date of bond issuance),that is three months of coupon interest payment.
The bond proceeds is computed as below:
Discounted bond price 99%*$90,000,000 =$ 89,100,000
Three months of interest 10%*$90,000,000*3/12 =$2,250,000
Total amount received from bond issue $91,350,000
Answer: Interest rate can vary
Explanation: Based on the description of Greg's and Joyce's mortgage loan, the key term is the adjustable nature of the loan used to finance the mortgage. Being adjustable simply means not fixated. Hence, the interest on the loan is bound to change throughout the entire period of the loan. This type of mortgage loans are called ADJUSTABLE RATE MORTGAGE or FLOATING mortgage. The change in the interest rate applied on the outstanding balance of is usually at intervals which could be annually, semianually or monthly basis as the case may be.
Answer:
implied credit spread = 1.13 %
Explanation:
given data
interest on foreign government bonds = 7.5%
current exchange rate = 28
forward exchange rate = 28.5
risk-free rate = 4.5%
solution
we get here risk free rate by the forward exchange rate that is
F = spot exchange rate × \frac{1+Rr}{1+Rs} ....................1
put here value
28.5 = 28 × \frac{1+Rr}{1+0.045}
solve it we get
Rr = 0.0637
Rr = 6.37%
so
implied credit spread = interest on foreign government bonds - risk free rate
implied credit spread = 7.5% - 6.37%
implied credit spread = 1.13 %
Answer:
Depletion expenses for the first year is $210736.840
Explanation:
Depletion expenses= (Cost of coal mine - residual value) / Total tons of coal * tons extracted
=(1,001,000 - $0) / 57,000 tons * 12,000 tons
=$210736.8421
=$210736.840
