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gulaghasi [49]
3 years ago
8

On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600. The bonds pay intere

st at 12%, which is paid semiannually on January 1 and July 1. How much interest revenue will be recorded on July 1?
a. $400.
b. $2,000.
c. $2,400.
d. $406.
Business
1 answer:
lyudmila [28]3 years ago
6 0

Answer: $400

Explanation:

The amount of interest revenue that will be recorded on July 1 will be calculated thus:

Interest revenue = Face value × Interest percentage × 1/12

= $40,000 × 12% × 1/12

= $40000 × 0.12 × 0.08333

= $400

Therefore, the interest revenue that will be recorded on July 1 is $400.

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Working capital is known as all the activities that are concerned with the managerial accounting techniques and monitoring and utilizing the current assets and liabilities of a company.  <span />
7 0
3 years ago
Ballard Company uses the perpetual inventory system. The company purchased $10,000 of merchandise from Andes Company under the t
Sunny_sXe [5.5K]

Answer: $8750

Explanation:

The amount of gross margin that resulted from these business events will be calculated as:

Purchase = $10000

Less: Purchase discount = $10000 × 2% = $200

Add: Freight paid = $450

Total purchase = $10250

Gross margin = Sales - Total Purchases

= $19000 - $10250

= $8750

7 0
3 years ago
Salmon, Incorporated issues 500,000 shares of preferred stock for $60 a share. The stock has a fixed annual dividend rate of 5%
azamat

If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of: $0.90 per share.

Using this formula

Annual dividends= Par value × Fixed Annual dividend rate

Where:

Par value= $18 per share

Fixed Annual dividend rate= 5% or 0.05

Let plug in the formula

Annual dividends= $18 per share × 0.05

Annual dividends= $0.90 per share

Inconclusion if sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of: $0.90 per share.

Learn more about annual dividend here:brainly.com/question/25557702

4 0
3 years ago
The Isberg Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% pe
hoa [83]

Answer:

The company's current stock price is $ 18.62.

Explanation:

To calculate the company's current stock price we have to use first the following formula to calculate the: Expected Return of stock

Expected Return of stock = Risk Free Rate+ Beta * Market Risk Premium  

Expected Return of stock= 4+1.15*5      

=4+5.75      

Expected Return = 9.75%      

Then, we can calculate the stock price with the following formula:

Price = Dividendat year 1/ Return- Growth    

D1 =0.75*105.5%    

=0.79125      

Price =0.79/( 0.0975-0.055)      

=18.62      

The price is $ 18.62

6 0
4 years ago
Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investment
nekit [7.7K]

Answer:

Investment D would have the lowest present value

Explanation:

A is smaller compared to E, This is because the money comes in later

The same argument holds for B and C, that is, B is lower compared to C because the money comes in later too.

A is also lower than B, this is because  of the annuity to be received later is larger.

D is just one payment, which means D is the right answer compared to A

This means investment D would have the lowest present value compared to all other investment choices.

5 0
3 years ago
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