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chubhunter [2.5K]
2 years ago
13

A municipal bond is purchased at a discount. Over the course of the life of the bond, the book value is increased while the cust

omer holds the security. This is performed using which of the following accounting methods
A) This is referred to as marking up the security.
B) This occurs when we see the security appreciate in value.
C) This is referred to as accretion of the security.
D) This occurs when we amortize of the security.
Business
1 answer:
jasenka [17]2 years ago
6 0

Answer:

C) This is referred to as accretion of the security.

Explanation:

The security is amortized when the principal and interest is employed in paying down the debt.

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Please describe an effective leadership style
Lostsunrise [7]

Explanation:

noluyo anlamıyom ya döyler misiniz

8 0
2 years ago
According to the diathesis-stress model, if 100% of individuals with a genetic predisposition to a disorder actually display sym
ELEN [110]

Answer:Biological

Explanation:

The Diasthesis-stress model is a psychological theory which explains that peoples predisposition to stress can be affected by external causes of stress within the environment and thus, create a disorder. Some people are more prone to stressors compared to others. The biological behavioural approach is unaffected by the social, cultural, and environmental factors.

4 0
3 years ago
When a liability is first recorded, it is _____. reported as a current liability. reported as a long-term liability. measured in
bekas [8.4K]

Answer:

measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.

Explanation:

According to my research on financial accounting terms, the term liability is defined as the state of being legally responsible for something (dept such as auto or student loans). When a liability is first recorded it is measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Basically calculating the amount of future payments that need to be made by the dept owner.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Jefferson's recently paid an annual dividend of $1.31 per share. The dividend is expected to decrease by 4% each year. How much
Vlad [161]

Answer:

$6.29

Explanation:

Dividend is $1.31 per share

Decreased by 4%

Required return is 16%

Therefore:

Price = [$1.31 × (1 - .04)]/[.16 - (-.04)] = $6.29

8 0
3 years ago
Read 2 more answers
Assume that Bolton Company will pay a $2.00 dividend per share next year, an increase from the current dividend of $1.50 per sha
Gwar [14]

Answer:

None of the options are correct as the price today will be $26.786

Explanation:

The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach (DDM). The DDM bases the value of a stock on the present value of the future expected dividends from the stock.

The formula for price under constant growth model is,

P0 = D1 / (r - g)

Where,

  • D1 is the dividend expected for the next period
  • r is the required rate of return or cost of equity
  • g is the growth rate in dividends

However, as the constant growth rate in dividends is to be applied from Year 2 onwards, we will use the D2 to calculate the price at Year 1 and we will then discount this further for one year to calculate the price today.

P1 or Year1 price  =  2 * (1+0.05) / (0.12 - 0.05)

P1 or Year 1 price = $30

The price of the stock today or P0 will be,

P0 = 30 / (1+0.12)

P0 = $26.786

3 0
3 years ago
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