Answer:
caring value of bond liability is $48000
interest expense = $3547
annual coupon = 3500
amount of bond discount amortization is $47
Explanation:
given data
face value = $50,000
bonds issue = 96
discount = 4%
time = 20 year
interest = 7%
effective rate of interest = 7.389%
to find out
compound annual coupon
solution
we have given face value and discount 4 %
so issue price will be
issue price = 96% of face value
issue value = 96% × 50000 = $48000
and
interest expense is here by effective interest rate is
interest expense = 7.389% of $48000
interest expense = $3547
and
annual coupon is here
annual coupon is 7% of face value
annual coupon = 7% × 50000
annual coupon = 3500
and
amount of bond discount amortization is 3547 - 3500 = $47
Answer:
- The Demand is given by
- The supply curve is by
Consumers will face a price of 33.29 and the equilibrium quantity will be 43.42.
These results illustrate that as a consequence of the tax, the price faced by consumers will be higher, quantity sold be lower, and producers will receive less for their product sale.
Explanation:
- The Demand is given by
- The supply curve is by
In the absence of taxes 
and 
.
An ad-valorem tax 
generates now that
So the new equilibrium is
Replacing in the demand equation we get the equilibrium quantity
Answer:
$57,100
Explanation:
The technique for this question to follow closely the payment cycle
<u>Calculation of January Cash Receipts</u>
Cash Sales ($59,000 x 10%) $5,900
Credit Sales in January ($59,000 x 40%) $23,600
Credit Sales in December ($51,000 x 50%) $25,500
Credit Sales in December ($21,000 x 10%) $2,100
Total $57,100
Conclusion
the expected cash receipts for January from the current and past sales is $57,100
Answer:
d. the rate at which consumers are likely to adopt a new product or service.
Explanation:
Diffusion theory tends to describe that how, why and at what rate does now ideas and technology spreads. This theory is mainly focused on human capital and cannot function without it.
New ideas and technology cannot be spread until people adopt them. Therefore the focus of this theory remains at the rate at which consumers are likely to adopt a new product or service.
Answer:The Company needs to sell 1.11 million shares.
Explanation:
Since 8% shares are already taken b underwriters, the Compay needs to sell 92% of shares. So 92% of total amount (65.4 million) is $ 60.168 million. We will divide the amount by price per share of $54 to get amount of shares needed to be sold. So after dividing is $ 60.168 million by $54, we get 1.11 million shares which is the answere.
