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arlik [135]
3 years ago
12

On January 1, Year 1. a company issues $100.000 of 8% bonds maturing in 10 years when the market rate of interest is 9%. The bon

ds were issued at a discount. Market interest rates drop to 6% by December 31, Year 2. The company retires these bonds on December 31, Year 2. Which of the following is true?
a) The bonds can be retired at their carrying value
b) The company will incur a loss
c) The company will incur again
d) No gain or loss will be recorded
Business
1 answer:
Margarita [4]3 years ago
5 0

Answer:

b) The company will incur a loss

Explanation:

The market rate at the time of issue = 9%, while coupon rate = 8%, it says bonds provide lesser return when compared to the market rate.  

At end of year 2 market rate drops to 6% which is lower than the Bond's coupon rate. Which means the bond's providing high return when compared to the market. So, company to retire the bonds need to pay more than the par value.

As company should retire these bonds more than par value, the company incur a loss.

Option 'B is correct

The company incur a loss

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MissTica

Answer: Macro, External

Explanation:

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Required information [The following information applies to the questions displayed below.] Desmond is 25 years old and he partic
MrRa [10]

Answer:

Saver's credit = $0

Explanation:

He is not entitled to any saver's credit, as he is not married and his AGI is greater than $32,000. Therefore the Saver's credit is equal to zero. Is also important to consider that Desmond is a head of a household and his AIG is between 31,126 and 48,000.

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Mention any 4 criteria that a human resource manager should consider about job applicants.
enyata [817]

The correct answer to this open question is the following.

Although there are no options attached, we can comment on the following.

The criteria that a human resource manager should consider about job applicants are the following.

1.- Technical expertise in their fields.

Candidates must show they have the experience for the position they are applying for.

2.- Accountability.

Managers should prove that candidates are responsible people and own the consequences of their decisions and actions.

3.- Commitment.

Managers have to realize that candidates are willing and able to show appreciation and commitment to the company. Their work must be a priority and should be dedicated to it.

4.- Communication.

Employees should show their communications abilities and capacity to accept criticism.

6 0
3 years ago
To arrive at operating cash flows, you should start with _______, _______ non-cash items and then adding or subtracting changes
Aleks04 [339]

To arrive at operating cash flows, you should start with net income, adding non-cash items and then add or subtract changes in working capital.

A measure of the amount of money made by a company's regular business operations is called operating cash flow (OCF). Operating cash flow shows if a business can produce enough positive cash flow to support and expand its operations; if not, it may need outside finance for capital growth.

An essential metric for assessing the financial performance of a company's main business operations is operating cash flow.

A cash flow statement's opening part, which also contains cash from investing and financing activities, shows operating cash flow.

The indirect method and the direct approach are both ways to show operating cash flow on a cash flow statement.

Learn more about operating cash flow here:

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6 0
2 years ago
During the year, Patriot Partners had $245,000 in revenues, $120,000 and expenses, and $40,000 in declared dividends. What was P
Bezzdna [24]

Answer:

Patriots net income for the year = $245,000

Explanation:

Data provided in the question:

Revenue of Patriot Partners during the year = $245,000

Expenses of Patriot Partners during the year = $120,000

Declared dividends by Patriot Partners = $40,000

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or

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or

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3 0
3 years ago
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