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PtichkaEL [24]
3 years ago
11

Currie Company borrowed $30,000 from the Sierra Bank by issuing a 9% three-year note. Currie agreed to repay the principal and i

nterest by making annual payments in the amount of $11,852. Based on this information, the amount of the interest expense associated with the second payment would be: (Round your answer to the nearest dollar.)
Business
1 answer:
Evgen [1.6K]3 years ago
3 0

Answer:

$1,876

Explanation:

The computation of the amount of the interest expense is shown below:-

Year    Annual      Interest           Principal             Outstanding

          Payments   Amount 9%     Amount

0                                                                                  $30,000

1          $11,852    $30,000 × 9%  $11,852 - $2,700   $30,000 - $9,152

                                $2700             $9,152                   $20,848

2         $11,852    $20,848 × 9%   $11,852 - $1,876     $30,000 - $9,976

                                  $1,876         $9,976                     $20,024

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3 years ago
Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar
Alex

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

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5 0
2 years ago
The common stock of ABC, Inc., has a beta of 1.13 and a standard deviation of 21.4 percent. The market rate of return is 12.7 pe
harina [27]

Answer:

The appropriate answer is "13.82%".

Explanation:

Given:

Risk free rate,

R_f=4.10

Beta of stock,

\beta=1.13

Market rate,

= 12.7

Now,

The market risk premium will be:

⇒ R_p = Market \ rate-Risk \ free \ rate

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hence,

The cost of equity will be:

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      =4.10+1.13\times 8.60

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