Answer:
-7.407%
Explanation:
Let interest rate be x%
Present value of payment = $130,002 * PV of discounting factor (rate%, time period)
$103,200 = $130,002 * 1.0x^3
1.0x^3 = $103,200 / $130,002
1.0x = ($103,200 / $130,002)^(1/3)
1.0x = 0.793834^(1/3)
1.0x = 0.92592660981
x = (0.92592660981 - 1) * 100
x = -0.07407*100
x = -7.407%
Answer:
Issuing bonds will be the better option for this company. Mainly because they do not like to give up the control of the company or to change its equity structure.
When the bonds are issued, the company gets the money from the investors and has to pay an agreed amount of interest periodically until maturity of the bond, where the company will have to pay the face value of the bonds.
Explanation:
Answer: a. Credit to Unrealized Gain-Equity for $4,000.
Explanation:
Because the investment is an AVAILABLE FOR SALE investment, gains and losses made on it are recorded under COMPREHENSIVE INCOME in the Equity section as Unrealized gains or losses.
Because this is profit, it is treated as Unrealized gains and is Credited in the Equity section under Comprehensive income.
You however only record the gains or losses and not the whole amount because the investment is recorded at Fair Value as an asset.
Therefore in this scenario, the gain is $20,000-$16000 which is $4000. That is what is recorded as an Unrealized gain.
The answer is <u>"policyowners".</u>
A mutual insurance company is claimed by policyholders. The sole motivation behind a common insurance agency is to give protection scope to its individuals and policyholders, and its individuals are given the privilege to choose administration. Government law, as opposed to state law, decides if a safety net provider can be delegated a common insurance agency.
Mutual insurance companies exist to guarantee that the advantages guaranteed to policyholders can be paid over the long haul. Since they are not exchanged on stock trades, shared insurance agencies can stay away from the weight of achieving here and now benefit targets.
Answer:
Yes
Explanation:
A company can easily keep its western values and still do business in Saudi Arabia where values are different. The successfullness of this endeavor depends on the market in which the business operates and the demand in Saudi Arabia for it. If the Demand in Saudi Arabia is high due to the lack of that product/service locally then the company's western values will be what makes them profitable.
