Answer:
The maximum price we should be willing to pay for this IBM bond is $ 877.
Explanation:
The price of bond can be determine by discounting all future cashlows we will get from bond in form of interest payment or redemption amount using expected rate of return.
The detail calculation is given below.
Price = 1000 * Discount factor + annuity factor * 80
Price = 1000 * 0.386 + 80 * 6.145 = 878
Discount factor = (1+10%)^-10 = 0.386
Annuity factor = (1 - (1+10%)^-10)/10% = 6.145
Answer: Intellectual property
Explanation:
Intellectual property is a property that is the result of the creativity of an individual or firm. Intellectual property is a form of property that includes the intangible developments of the human intellect.
Stealing of another person's or firm's intellectual property is a crime and is punishable. There are different types of intellectual property. The well-known types are patents, copyrights, trade secrets, and trademarks.
Answer:
Net income = $76,000
Earning per share (EPS):
Income from continuing operations per share = $4.40 per share
Loss from discontinued operations per share = -$3.64 per share
Net Income per share = $0.76 per share
Explanation:
Note: See the attached excel file for the income statement.
Also Note: Two years (2016 and 2018) were mistakenly mentioned in the question instead of just one of them. I therefore picked 2016 to prepare the income statement.
In the attached excel file, the earning per share (EPS) is calculated as follows:
Number of shares outstanding = 100,000 shares
Income from continuing operations per share = Income from continuing operations / Number of shares outstanding = $440,000 / 100,000 = $4.40 per share
Loss from discontinued operations per share = Loss from discontinued operations / Number of shares outstanding = -$364,000 / 100,000 = -$3.64 per share
Net Income per share = Net Income / Number of shares outstanding = $76,000 / 100,000 = $0.76 per share