Answer:
d. through bonds
Explanation:
Debt financing is a way of raising money by selling debt instruments to investors such as bills, notes or bonds. The company will pay back the debt instrument with some interest after a certain time. Debt financing is the opposite of equity financing where the company selling stocks and share ownership of the business.
Answer:
Since, the merit pay program is based on the performance appraisal. The better the performance, the better will be bonuses and benefits. So you will first have to improve the method of job appraisal.
Explanation:
Answer:
The answer is $15,680.66.
Explanation:
Semiannual coupon payment is 20,000 x 7% /2 = 700
* Present value of the bond as at 1st Jan 2006 is equal to:
+ Coupon payment at the time + Present value of 28 coupon payments in the next 14 years + Present value of face value repayment at the end of 14 years ( 14 x2 = 28 discounting periods) = 700 + (700/5%) x [1 - 1.05^(-28)] + 20,000/1.05^28 = $16,230.562
* We discount the present value of the bond as at 1st January 2006 to August 25 2005 to find the price of the bond ( from Aug 25 to 31st December there are 128 days, divided by 182.5 days for one period ).
16,230.562 / (1 + 5% x 128/182.5) = $15,680.66.
So the answer is $15,680.66.
Answer:
The correct answer is foreign exchange risk.
Explanation:
Currency risk is the positive or negative difference that arises from changes in the exchange rate over time. A company that carries out operations in another currency is exposed to exchange rate movements, therefore it must seek to compensate them strategically.
Whenever a company carries out a transaction in foreign currency, whether it is for the importation of inputs or products, or the export of goods, with a waiting period between collection and payment, there is a risk of loss or gain that may affect to your finances and your profitability.
As the exchange market is volatile, a company that does not anticipate changes in the exchange rate may run the risk of incurring losses that affect its financial planning and cash flows.
Therefore, it is advisable to be prudent in your purchases of raw materials or finished products and when contracting financing in other denominations.
Answer:
Debit unearned rent for $3,375
........Credit rent revenue for $3,375
Explanation:
The adjusting entry made by Fragmental Co. on December 31 is calculated as;
Number of months from October 1st to December 31st = 3 months
Rent revenue earned for 3 months = $1,125 × 3 = $3,375
Therefore, the adjusting entry would be;
Debit unearned rent for $3,375
..........Credit rent revenue for $3,375
