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schepotkina [342]
3 years ago
13

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2019. Interest is paid on June 30 and December 31. T

he proceeds from the bonds are $14,703,108. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2021?
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

$14,747,642

Explanation:

Data provided in the question

Issued amount = $15,000,000

Coupon rate = 7.8%

Time period = 20 years

Yield to maturity is 8%

So for computing the carrying value of the bonds

First we have to compute the discount amortization for 3 years which is shown below:

= ($15,000,000 - $14,703,108) ÷ 20 years × 3 years

= $44,533.80

So, the carrying value of the bonds

= $14,703,108 + $44,533.80

= $14,747,642

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The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who w
Nataliya [291]

Answer:

After the result obtained through the hypothesis test, I have sufficient evidence to reject the null hypothesis.

Explanation:

The null hypothesis is the statement that two (or more) parameters have no relation to each other.

X= estimated proportion new cars owner tha purchase the knee airbag

Y= they would have purchased the knee airbag

Z= the new compact owners

X= Y/Z

Hypothesis

H0= 0,30 (equal 30% .They would have purchased a knee airbag if it had been available)

H1≠0,30 (different to 30% .They would have purchased a knee airbag if it had been available)

Survey

Y=79

Z=200

X= 79 /200

X=0,395 ( 39,5% .They would have purchased a knee airbag if it had been available)

3 0
3 years ago
For each of the following, indicate which type of investment risk is being described.
Goshia [24]

Answer:

a. The ne research may go against the whole gram cereals and people will consume it less therefore demand may be lowered causing the sales and profit to decrease.

b. The increase level of gearing makes the company risky and people do not prefer to invest in the company which have high gearing. The increase debt and interest burden may cause company to become bankrupt and there can be threat for solvency.

c. The bargaining power of buyer is high in such case where the seller finds it difficult to find a suitable buyer.  

Explanation:

Investment risk is the risk associated with the business or new investment project. There should be detailed analysis of risk and return before investing in any project. It is better to understand the nature of risk and the extent to which it can hinder the progress of the business.

5 0
2 years ago
Northern purchased the entire business of Southern including all its assets and liabilities for $2,400,000 on December 31, 2021.
stich3 [128]

Answer:

$400,000

Explanation:

The computation of goodwill is shown below:-

Fair value of assets = $3,200,000

Fair value of liabilities = $1,200,000

Cash paid for southern = $2,400,000

Acquired Net assets = $2,000,000

Net assets acquired = Fair value of assets - Fair value of liabilities

= $3,200,000 - $1,200,000

= $2,000,000

Goodwill acquired = Cash paid for southern - Acquired Net assets

= $2,400,000 - $2,000,000

= $400,000

5 0
3 years ago
Why is the statistical validity of a multiple regression design more complicated to interrogate than a bivariate design? a. Thes
Allisa [31]

Answer:

The answer is letter D.

Explanation:

Because it is harder to detect outliers.

7 0
3 years ago
Describe at least three risks a company might face if it participates in global trade.
AleksAgata [21]
1. ignorance of laws/statutes/regulations in each country and communication issues

2. vulnerability of being a new entry in global competition

3. off-site business, finding trustworthy trade partners whom you've never met
6 0
3 years ago
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