Answer:
Bonds are a far more important source of financing than are stocks
Explanation:
There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.
There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.
The discounted value of interest to be paid on maturity is recorded.
Further, there is a tax benefit on bond payments.
Answer:
d. $(6,642)
Explanation:
The present value is the sum of after tax cash flows.
Present value can be calculated using a financial calculator
Cash flow in year 0 = $-81,000
Cash flow each year in year 1 to 3 = $27,000 + $2,900 = $29,900
I = 10%
Present value = $(6,642)
To find the PV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
D Yhe client has passed away and his or her will Cannot be located
Answer: Financial projections
Explanation:
The financial projection is the term which is used for forecasting the various types of future based expenses and also the revenue of an organization. It also helps in preparing the financial statement by using their best knowledge, result and also manage the cash flow system.
It also helps in developing the various types of short term financial based projection that for the purpose of internal marketing information.
The importance of the financial projection is that it helps in preparing the basic finance base statement by predicting the firm's outcome. Therefore, Financial projections is the correct answer.
Answer:
credit
Explanation:
an agreement between a buyer and the seller that payment for product or service will be received at some later due date
