You expect to find and increase knowledge of what really fits for you to do for the rest of your career life.
The answer base on the given scenario would be letter a,
Roger would gain benefits as he was protected from a financial loss as this
insurance covers him financially as the insurance of which premiums he has paid
and were to gain would only make him the person of having to have the benefit
as he is the one who has the insurance covered for him, which is entitled to
his name and that the benefits and offers would be his gain.
Answer:
the present value of the bond is $16.67
Explanation:
given data
time NPER = 12 year = 12 × 2 = 24 semi annual
bond value FV = $1000
interest PMT = $50
rate of interest = 6% =
= 0.03 = 3 % semi annual
solution
we will apply here formula for current value in excel as given below
-PV(Rate;NPER;PMT;FV;type) .............1
put here value as
rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50
solve it we get
the present value of the bond is $16.67
Answer:
Required return is 8.75%
Explanation:
Given,
FV (Face Value) is $1,000
PV (present Value) is computed as:
PV = FV × Price
= $1,000 × 101.4%
= $1,014
Nper (Number of years) is 8 years
PMT (Monthly payment) is computed as:
PMT = FV × Coupon rate
= $1,000 × 9%
= $90
r (Required return) is computed by using the excel formula:
=Rate(nper, pmt, pv, fv, type)
= Rate (8,90,-1014,1000,0)
= 8.75%
Answer:
b. $233,100 tax expense
Explanation:
The computation of the current income tax expense or benefit is shown below:
But before that first we have to need to find out the taxable income i.e
= Pretak book income + increase in net reserve warranties + exceeded amount - dividend deduction
= $1,000,000 + $25,000 + $100,000 - $15,000
= $1,110,000
Now to find out the current income tax expense since the tax rate is not given so we assume the marginal tax rate i.e 21%
So,
= $1,110,000 ×21%
= $233,100
By multiplying the taxable income with the tax rate we can get the income tax expense