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pychu [463]
3 years ago
9

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January 1, 2021. The bonds mature o

n December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.
Business
1 answer:
DIA [1.3K]3 years ago
5 0

Answer:

I strongly believe that the requirement is to calculate the price of the bond.

The bond is worth $ 70,824,063.03  

Explanation:

It is noteworthy that a rational would-be investor would pay for a bond a price that reflects the cash flows receivable from the bonds in future discounted to today's terms.              

The future cash flows comprise of the semi-annual coupon interest of $4 million(10%/2 *$80 million) for 20 periods as well as the repayment of the principal $80 million at the end of period 20

Since coupon is paid every six months, the coupon would be twenty times over the life of the bond(paid twice a year for 10 years)        

To bring the cash inflows today's term, we multiply them them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 12% and N is the relevant the cash flow is received.          

The discounting is done in attached spreadsheet leading $ 70,824,063.03 present value today.        

Download xlsx
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Theodore and janice have formed tj​ soft, an entrepreneurial venture to develop games and other kinds of software for consumers.
jeka94

The answer is<u> "demographic component".</u>


Population change results from the cooperation of demographic components: birth, demise and relocation. Along these lines, demography manages the point by point investigation of the three segments. With the estimation of such segments, different parts of the populace are broke down and deciphered. It designs and execute different advancement exercises. Birth, demise and movement are called demographic components, and additionally the deciding components of populace change since they influence the circumstance of the populace. In this way, the measure of the populace depends for the most part upon birth, passing and relocation.

5 0
3 years ago
Visibility, the road situation, and your physical condition can all influence your
Andrews [41]

Visibility, the road situation, and your physical condition can all influence your blind area.

Explanation:

A field of vision in an automobile is an area across the car which, under current conditions, the driver could not monitor directly during checks. A wide variety of vehicles contain blind spots, including airplanes, cars, motor yachts, sailboats and trucks.

The A-pillar (which is also referred to as a window pillar), sideview mirror or rear mirror in the inner of the rider's sideview mirrors might be obstructed by blindspots at the front of rider. The visibility can diminish behind passengers, freight, headrests and other pillars.

8 0
3 years ago
n December ​, General Electric​ (GE) had a book value of equity of ​billion, billion shares​ outstanding, and a market price of
Gennadij [26K]

Answer:

a. GE's market capitalization = 276.60 billion; and GE's market-to-book ratio = 2.85.

b. GE's book debt-equity ratio = 2.08; and GE's market debt-equity ratio = 0.73

c. GE's enterprise value = $374.26 billion

Explanation:

Note: This question is not complete as all its data are omitted. The complete question is therefore provided before answering the question as follows:

In December 2015, General Electric (GE) had a book value of equity of $97.1 billion, 9.2 billion shares outstanding, and a market price of $30.06 per share. GE also had cash of $103.9 billion, and total debt of $201.7 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?

The explanation to the answer is now provided as follows:

a. What was​ GE's market​ capitalization? What was​ GE's market-to-book​ ratio?

Calculation of GE's market​ capitalization

Market​ capitalization = Number of shares outstanding * market price per share = 9.2 billion * $30.06 = 276.60 billion

Calculation of GE's market-to-book​ ratio

Market-to-book​ ratio = Market capitalization / Book value of equity = $276.552 billion / $97.1 billion = 2.85

b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?

Calculation of GE's book debt-equity ratio?

Book debt-equity ratio = Total debt / Book value of equity = $201.7 billion / $97.1 billion = 2.08

Calculation of GE's market debt-equity ratio

Market debt equity ratio = Total debt / Market​ capitalization = $201.7 billion / $276.46 billion = 0.73

c. What was GE's enterprise value?

Enterprise value = Market capitalization + Total debt - cash = $276.46 billion + $201.7 billion - $103.9 billion = $374.26 billion

5 0
3 years ago
Determine the finance charge using the previous balance method. The account balance on April 1st is $50.51. On April 15th, a pay
Sedbober [7]

Answer:

$0.7577

Explanation:

The computation of the finance charge is shown below:

Finance charge =  The account balance × monthly rate

where,

The account balance = $50.51

Monthly rate = 18% ÷ 12 months = 0.015

So, the finance charge is

= $50.51 × 0.015

= $0.7577

We simply multiplied the account balance with the monthly rate so that the finance charge could come

All other information is not relevant. Hence, ignored it

5 0
3 years ago
Industry conditions change A. because of newly emerging industry threats and industry opportunities that alter the composition o
kap26 [50]

Answer:

E. because forces create pressures or incentives for industry participants (competitors, customers, suppliers) to alter their actions in important ways.

Explanation:

Industries can be described as different manufacturers producing a kind of particular goods or services.

Industry conditions are situations whereby there would be pressure among the compititors or customers in this industry which result to changing of their action in one way or the other which can influence the industry in positive or negative way.

We have different industries such as automobile, mining, food service and others.

8 0
3 years ago
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