The correct answer that would best complete the given statement above would be the second option. Funds are Scarce, so VOLUNTEERS <span>are needed to re-build homes destroyed by the flood. Volunteers include those people who are willing to help and give support without asking in return or be paid, given that the funds are already scarce. Hope this helps.</span>
Answer:
Part 1
<em>journal entry to record the investment in the bonds.</em>
Debit : Investment in Bonds $90,000
Credit : Cash $90,000
Part 2
<em>journal entry to record the first interest payment at the effective (market) rate.</em>
Debit : Investment in Bonds $7,200
Credit : Interest Income $7,200
Explanation:
The Summary of the Bond is :
FV = $100,000
PMT = ($100,000 x 6%) ÷ 2 = $3,000
I = 8 %
PV = - $90,000
P/YR = 2
N = ?
Using a Financial Calculator, the number of period payments to maturity N is 13.02.
Effective Interest = $90,000 x 8 % = $7,200
Answer:
I used to know this one, so I'm going off of memory and process of elimination.
I'd say it's your financial plan.
A financial plan assesses the ability of the customer to be able to pay back the loan, which is very important to the bank. It also assesses the assets of your business. It's basically showing the bank, how likely is it that we will get our money back from you?
Explanation:
An income statement is improbable because it applies to a company, and typically if you're getting a loan to start a business, you have no income yet.
The bank won't worry about your partnership agreement because that's not related to the fact that you are asking for money to fund your business, they just care that they'll get it back.
A guarantee of success doesn't make sense either because the bank is doesn't need to know if your business will succeed or not, they just want to make sure they get the money they asked for returned at the right date.
Answer:
car insurance, rent, student loan payments
Explanation:
Fixed expenses or fixed costs remain constant throughout a financial period. In the year under consideration, fixed expenses will have the same figures regardless of the production level. Fixed costs contrast variable costs, which vary depending on the level of business activities.
From the list provided, car insurance, rent, student loan payments will likely remain the same in the financial period. The other expenses, such as pet needs, entertainment, public transportation costs, and gifts, are bound to be determined by production volumes.
Answer:
9.68 percent
Explanation:
Calculation to determine the firm's cost of equity
Using this formula
Cost of equity=[(Annual dividend×Increase in dividends×/Current price of common stock]+Dividends
Let plug in the formula
Cost of equity=[($1.22 × 1.024)/$17.15] + 0.024
Cost of equity=($1.24928/$17.15)+0.024
Cost of equity=0.0728+0.024
Cost of equity=0.0968*100
Cost of equity=9.68 percent
Therefore the firm's cost of equity is 9.68 percent