Answer:
When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%
Explanation:
Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).
Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.
![r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2Br%28annual%29%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1)
So, everything should look like this.
![r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2B0.08%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1%3D0.03923)
Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%
Best of luck.
Answer:
The correct answer is letter "B": The tendency of competition to cause individuals and firms to unintentionally promote the interests of society.
Explanation:
In his book "<em>An Inquiry into the Nature and Causes of the Wealth of Nations</em>" (1776), British economist Adam Smith (1723-1790) introduced the term "invisible hand" to refer that economic factors (buyers and sellers) naturally influence in the fluctuations of supply and demand without the need for the intervention of the government.
According to Smith, buyers and sellers interactions act as an "invisible hand" arranging proper levels of competition between businesses and promoting the best interest of societies.
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Bachelors, Diploma and Higher Certificate Pass Requirements Explained
Written by howtopassmatric on October 20, 2015 <span> · 124 Comments</span> </span>
We often get asked to check if learner (Insert your name) will or will not pass with a bachelors, diploma or certificate.
Answer: True
Explanation: Capital budgeting is a tool used for evaluating the profitability of long term investments by the company. In the process of capital budgeting, the incremental expected cash inflows are compared with the initial cash outflow of the project using time value of money analysis.
In time value of money analysis the expected cash inflows are discounted back to the present time by using a particular rate, and then that present value is deducted from outflow to ascertain the profit.
Answer:
1.7900 shares
2.7300 shares
3.$22.95
4.$59
5.$6,300
6.$10.50
7.$791,000
Explanation:
The number of preferred shares=total par value of preferred shares issued/par value=$165,900/$21=7900 shares
The number of preferred shares outstanding is issued shares minus treasury stock=7900 shares-600 shares=7,300 shares
average issue price of preferred stock=(total par value+additional paid capital)/issued shares=($165,900+$15,400)/7900=$22.95
Average issue price of common stock==common stock amount/issued shares=$590,000/10000=$59
The treasury stock decreases stockholders' equity by the amount paid to repurchase the shares which is $6,300
Treasury stock cost $ per share=cost of treasury cost/number of treasury stock=$6300/600=$10.50
Total stockholders' equity in $=preferred stock+preferred stock additional paid in capital+common stock+retained earnings -treasury stock
Total stockholders' equity in $=165,900+15,400+590,000+26000-6300=$791,000
