Answer:
Price of share = $40.50
Explanation:
P/E ratio describes the price to earnings ratio.
Provided if P/E ratio = 13.5
And Earnings per share = $3 per share.
That means,
Price = 13.5 
3 = $40.5
Therefore, it is not dependent on dividend payout ratio, and the price = $40.50
Answer:
Price of bond is = $ 1057
Explanation:
As we know that;
Price of bond = C * [1-(1+r)∧-n] / r + F / (1+r)∧n
where C = periodic coupon payment = 1000 * 6%= 60
F = Face value of bond = 1000
r = yield to maturity = 5% = 0.05
n = number of periods till maturity = 7 years
Putting values;
= 60 * [ 1- (1+ 0.05)∧-7 ]/ 0.05 + 1000 / (1+0.05)∧7
= 60 * (0.2893 / 0.05) + 710
= 60 * 5.786 + 710
= 347.16 +710
= 1057
Answer:
Unemployment rate is 25%
Explanation:
The percentage of people eligible for job and not currently involved in paid work or self employed and available for work as well is called rate of unemployment. It is the percentage of people who is not currently woking seeking the job.
Labor Force = Employed persons + Unemployed persons
Labor Force = 24 million + 8 million
Labor Force = 32 million
Unemployment rate = ( Unemployed persons / Labor force ) x 100
Unemployment rate = ( 8 million / 32 million ) x 100 = 25%
Answer:
The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.
Explanation:
This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.
The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.
So, the appropriate journals to record this transaction is as provided above.
Answer:
the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment
Explanation:
covenants help lenders detect deteriorating loan quality.
