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worty [1.4K]
3 years ago
9

On June 30, Year 7, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30, Year 9. Interest was payable s

emiannually every June 30 and December 31. On June 30, Year 7, after amortization was recorded for the period, the unamortized bond premium was $30,000. On that date, King acquired all its outstanding bonds on the open market at 93 and retired them. At June 30, Year 7, what amount should King recognize as gain before income taxes on redemption of bonds

Business
1 answer:
viva [34]3 years ago
4 0

Answer:

The gain before income taxes on redemption bond is $80,00

Explanation:

Please check the file attached below to see the solution to given question. Thank you

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Stock Y has a beta of 1.8 and an expected return of 18.2 percent. Stock Z has a beta of .8 and an expected return of 9.6 percent
nlexa [21]

Answer:

The reward to risk ratio for stock Y is 7.22%

The reward to risk ratio  for stock Z is 5.50%

Explanation:

First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.

The risk premium is calculated as stock expected return minus risk free rate

The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller

For stock Y risk premium is 18.2%-5.2%=13%

For stock Z risk premium is 9.6%-5.2%=4.40%

For stock Y reward to risk ratio=13%/1.8=7.22%

For stock Z reward to risk ratio=4.40%/0.8=5.50%

Hence stock Y has a higher reward to risk ratio

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3 years ago
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If you deposit $4,000 in a bank account that pays 6% interest annually, how much will be in your account after 5 years? Do not r
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Answer:

Present value (P) = $4,000

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Number of years (n) = 5 years

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FV = $4,000(1 + 0.06)5

FV = $4,000(1.06)5

FV = $4,000 x 1.338225578

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Explanation:

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John constantly needs assistance from his colleagues at work. He feels helpless and lacks conviction in his ideas. Which type of
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Web brosers are not considered a company's resource.

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