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Naddika [18.5K]
3 years ago
6

Bonds with a face amount $1,000,000, are sold at 96. The entry to record the issuance is

Business
1 answer:
laiz [17]3 years ago
8 0

Answer:

Option C is correct

Explanation:

The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000

The discount on bonds payable=Face value-cash proceeds

The discount on  bonds payable=$1,000,000-$960,000=$40,000

The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively

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Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book
Luda [366]

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

7 0
2 years ago
Why is it difficult to change real capital
Sonbull [250]

Answer:

I don't know

Explanation:

can you help me with my question Enter the coordinates of the point on the unit circle at the given angle. 270° ([?], [ ] Enter

3 0
2 years ago
Horace is trying to start a business. He knows several accredited investors who he knows will help him jumpstart his business. W
Nata [24]

Answer:

Investors may invest a combined $50 million within a 12-month period.

Explanation:

According to the section, there are two pricing rates in Regulation A In the 1st Tier, for offering upto $20 million over a 12-month span and another 2nd Tier, for offerings upto $50 million over a 12-month period.

Therefore, as per the given situation the right answer is Investors are permitted to invest a combined $50 million over a 12-month period.

6 0
3 years ago
If the seller has reason to believe that nonconforming goods will be acceptable to the buyer, this could constitute as an except
Blababa [14]

Answer:

Perfect Tender Rule

A. True

Explanation:

The Uniform Commercial Code's Article 2 recognizes the legal right of a buyer of goods to demand precise conformity of the goods to the product description in quality, quantity, and delivery manner.  Therefore, the buyer may reject goods offered by the seller which do not conform to the earlier product descriptions.  This rule is called the Perfect Tender Rule.  An exception to this rule will be if the seller has a reason to believe that non-conforming goods will be acceptable to the buyer.

4 0
3 years ago
which of the following is a benefit of a college education? A. You collect social security benefits at an earlier age than a hig
slega [8]

Answer:

The correct option is;

B. You have an increased chance of financial stability

Explanation:

The advantages of going to college includes;

1) College graduates make more salary on average

2) Holding a college degree improves career stability

3) Improved job satisfaction

4) Improved financial know how on savings and investment

5) Stable marital life

6) College graduate are able to be better citizens, by their willingness and ability to contribute meaningfully whenever a volunteer requirement

5 0
3 years ago
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