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olya-2409 [2.1K]
3 years ago
6

If bonds with a face value of $ 206 comma 000are issued at 109​,the amount of cash proceeds is​ ________.

Business
1 answer:
nekit [7.7K]3 years ago
5 0

Answer:

The cash proceeds is $224,540

Explanation:

The implication is that the bonds were issued at a premium.  A bond issued at a premium is issued above its par value.  This means that investors pay more than the face value for investing in the bonds.  They are usually compensated with higher interest rates.

Bonds can also be issued at a discount.  This happens when the issue price is less than the par value.  The par value is the face value or nominal value.  Bonds can be issued at a discount when the interest rate is lower than the yield rate.

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A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project ha
givi [52]

Answer:

$163,100

Explanation:

First find the present value of cashflows at year 1 and 2

<u>PV of  $82,400;</u>

PV = FV/(1+r)^n

PV = 82,400/(1.1275)^1

PV = $73082.0399

<u>PV of  $148,600;</u>

PV = FV/(1+r)^n

PV = 148,600 /(1.1275)^2

PV = $116,892.2473

From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;

PV of cashflow yr3 = $303,764.34 -$73082.0399 -$116,892.2473

PV of cashflow yr3 = $113,790.053

Next, calculate year 3's cashflow;

Year 3 cashflow = 113790.053(1.1275)^3

Year 3 cashflow = $163,099.996

Expected cashflow in third year is approximately $163,100

3 0
3 years ago
On January 1, Andrea reviews her investment portfolio and finds out that she has had a very profitable year. To offset some of h
butalik [34]

Answer:

$5,000 realized, but not recognized loss

Explanation:

Based on the above information given we were told that two years earlier She purchased some shares for the amount of $15,000 in which in order for her to offset few of her gains she sells those 100 shares of Bear Corporation for the amount of $10,000 making her to REALIZED the amount of $5,000 ($15,000-$10,000) reason been that a loss will be realized instantly in a situation were an assets is sold out for a loss.

Therefore the tax consequences to Andrea this year will be the amount of $5,000 Realized, but not recognized loss.

8 0
3 years ago
Fill in the blank question. A product has a selling price of $10 per unit, variable expenses of $6 per unit and total fixed cost
Trava [24]

The net operating income is $5,000.

<h3>What is the net operating income?</h3>

The net operating income is total revenue less direct and indirect expenses.

The net operating income = total revenue - variable expenses - fixed costs.

Total revenue is price per unit multiplied by the total quantity sold. The variable expense cost per unit multiplied by the total quantity sold.

(10,000 x $10) - (10,000 x $6) - $35,000

100,000 - 60,0000 - 35,000 = $5,000

To learn more about fixed cost, please check: brainly.com/question/25879561

6 0
2 years ago
Jane always finishes the work assigned to her before her team members. Her performance never dropped even when she was working o
iris [78.8K]

Answer: Rate buster

Explanation: Those employees that exceed their performance level beyond the agreed formal rate are called rate buster in scientific management. These are the workers who use their maximum ability while performing a job.

In the given case, Jane performs superior than her fellows even in case of difficult situations.

Hence, from the above we can conclude that Jane should be considered as a rate buster.

5 0
3 years ago
Growing perpetuity: You are evaluating a growing perpetuity investment from a large financial services firm. The investment prom
andrey2020 [161]

Answer:

The correct answer is $357,142.86.

Explanation:

According to the scenario, the given data are as follows:

Initial payment = $20,000

Growth rate = 3.4%

Discount rate = 9%

So, we can calculate the present value, by using following formula:

Present Value = Initial payment ÷ ( Discount rate - Growth rate)

By putting the value, we get

= $20,000 ÷ (0.09-0.034)

= 357,142.86

Hence, The present value of this Growing perpetuity is $357,142.86

8 0
3 years ago
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