The effective rate on these bonds is 7.17%
<h3>What is the effective rate?</h3>
The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.
The effective interest rate can be determined using a financial calculator:
- Cash flow in year 0 = -490,222
- Cash flow from period 1 - 12 = 6% x 540,000 = 32,400
- Cash flow in year 6 or period 12 = $540,000
effective interest rate = 7.17%
To learn more about effective interest rate, please check: brainly.com/question/13735414
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Answer:
Selling stocks to raise money is a practice known as equity financing. Stocks are equity. Equity are assets minus liabilities.
Stocks would give Kenji partial ownership of the firm. The amount of ownership demends of how many stocks he buys.
If NanoSpeck runs into financial difficulty, people that hold bonds will be paid first than people who hold stocks. Bonds, contraty to stocks, are liablities, not equity, and when a company declares bankruptcy, it has to pay liablities first, and if there is any money left, it then pays to stockholders.
A) Untrue - If Kenji buys stocks from another stockholder, the revenue goes to the stockholder, not to NanoSpeck.
B) True - The value of stocks largely depend on economic expectations. If the economy is expected to enter a recession, the value of Kenji's stock will most likely go down.
C) True - If the market considers that NanoSpeck is in a healthy financial position, then, the Nano Speck stocks that Kenji holds will likely rise in value.
Explanation:
As in saftey hazard im assuming you mean noticing the experiment going out of the ordinary and you messed up I would go to the instructor.
Answer:2.38:1 would be the CORRECT answer.
Explanation:
