Answer:
Capitalized value $582.000.
Explanation:
Step 1. Given information.
- The common share of Miser had a fair value of $50 per share.
Step 2. Formulas needed to solve the exercise.
- Fair value of shares = Price per share * (Amount by selling scrap - exchanged shares)
- Capitalized value = fair value of shares - value of scrap.
Step 3. Calculation.
Fair value of shares = $50 * (18.000 - 6.000) = $600.000
<em />
<em>Land should be capitalized by fair market value of share exchanged less any recovery of scrap as land will be developed for future plant. </em>
Step 4. Solution.
<em />
Fair value of shares = $50*12.000 = $600.000
Less: value of scrap = $18.000 .
Capitalized value = $600.000 - $18.000 = $582.000.
Answer:
Explanation:
using the annuity formula = P=R*(1-(1+i )^-n)/i
p= 26000
i= 8.5/12=0.70833%
Payments=5*12=60
R=?
Since we have
26000=R*(1-(1+0.70833%)^-60)/0.70833%
26000=R* 0.34524/0.70833%
26000=R*48.74122
R=26000/48.74122
R=533.42931
Bond issuers look at outstanding bonds of similar maturity and risk. The yields on such bonds are used to establish the coupon rate necessary for a particular issue to initially sell for par value. Bond issuers also simply ask potential purchasers what coupon rate would be necessary to attract them.The coupon rate is fixed and simply determines what the bond’s coupon payments will be.
Answer:
Rate of return on investment = 79.87% Loss
Explanation:
Given:
Sale price = $97,843.75
Face value = $100,000
Initial margin = $2,700
Computation:
Loss on sale = Face value - Sale price
Loss on sale = $100,000 - $97,843.75
Loss on sale = $2,156.5
Computation:
Rate of return on investment = ($2,156.5 / $2,700)100
Rate of return on investment = 79.87% Loss
