Answer:
Statement of stockholders' equity
at the end of the year (December 31)
<u>Common Stock</u> <u>Retained Earning</u> <u>Total</u>
Opening Balance $12,000 $7,100 $19,100
Income for the year $7400 $7400
Dividend Paid ($2,100) ($2,100)
Common stock issuance <u> $6,900 </u> <u> </u> <u> $6900 </u>
End of the year Balance $18,900 $12,400 $31300
Answer:
$150,876.91
Explanation:
To calculate, the present value of an ordinary annuity formula is used as follows:
PV = P × [{1 - [1 ÷ (1+r)]^n} ÷ r] …………………………………. (1)
Where;
PV = Present value of the payments =?
P = yearly payment = $30,000
r = interest rate = 11% = 0.11
n = number of years = 5
Substitute the values into equation (1) to have:
PV = $30,000 × [{1 - [1 ÷ (1+0.11)]^5} ÷ 0.11] = $110,876.91
Amount to record = $40,000 + $110,876.91 = $150,876.91
If the price of the common stock declines by 50 percent, the price of the convertible bond will also decline by the same percentage
If the stock price falls, the short seller profits by buying the stock at the lower price closing out the trade. Convertible bonds tend to offer a lower coupon rate or rate of return in exchange for the value of the option to convert the bond into common stock.
Thus, if the price of a convertible bond will move in tandem with the price of the common stock, so if the stock price declines, the convertible bond price will follow suit.
Hence, convertible bonds typically carry lower interest rates payments.
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Forecasting Methods
Financial analysts utilize four basic types of forecasting techniques to project future sales, costs, and investment costs for a company. Although there are many commonly used quantitative budget forecasting tools, in this article we concentrate on the top four techniques: Straight-line, moving average, simple linear regression, multiple linear regression, and straight-line.
Main Content
You are aware that there are 150 units in stock at the moment (beginning inventory = SI), and ABC's marketing manager predicts that demand for the motor will be 240, 225, 265, 270, 260, and 275 units over the course of the following six months (M = 6). (D1, D2, D3, D4, and D5 respectively).
In six months, you wish to have 50 units in stock (ending inventory = EI) and have decided that you want to lower the average inventory level of various goods, including this one.
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Answer:
D. Zero-tranche CMO with estimated 5 years life
Explanation:
