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Mrrafil [7]
3 years ago
6

On January 1, Novak Corp. issued $3600000, 14%, 5-year bonds with interest payable on December 31. The bonds sold for $3859546.

The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for
Business
1 answer:
Juliette [100K]3 years ago
6 0

Answer:

the debit entry to Interest Expense is $463,145.52

Explanation:

The computation of the debit entry to Interest Expense is given below:

= Bonds carrying value × Market rate of interest

= $3,859,546 × 12%

= $463,145.52

Hence, the debit entry to Interest Expense is $463,145.52

We simply applied the above formula and the same is to be considered

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Olivia likes to eat both apples and bananas. At the grocery store, each apple costs $0.20 and each banana cost $0.25. Olivia’s u
icang [17]

Answer:

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

Explanation:

Let A represent the number of apples bought and B represent the number of bananas bought. Therefore since Olivia has $4 to spend:

0.2A + 0.25B = 4       (1)

Also, the tangency condition can be used to find the optimal amount of A to relative to B. It is give as:

MU_A/P_A=MU_B/P_B\\\\\frac{3\sqrt{\frac{B}{A} } }{0.2}= \frac{3\sqrt{\frac{A}{B} } }{0.25}\\\\15\sqrt{\frac{B}{A} }=12\sqrt{\frac{A}{B} }\\\\squaring\ both\ sides:\\\\\frac{225B}{A} =\frac{144A}{B}\\\\225B^2=144A^2\\\\B^2=0.64A^2\\\\Taking\ square\ root:\\\\B=0.8A

Put B = 0.8A in equation 1:

0.2A + 0.25(0.8A) = 4

0.2A + 0.2A = 4

0.4A = 4

A = 10

B = 0.8(A) = 0.8(10) = 8

Therefore, Olivia should buy 10 apples and 8 bananas to maximize her utility.

6 0
3 years ago
g announced that it plans to cut its dividend from $2.50 to $1.50 per share (next year) and use the extra funds to expand its op
mote1985 [20]

Answer:

The value of the Share of Zeke after the new Expansion is $25.

Explanation:

As there was no growth in the dividend before change, Price of the share from a stable dividend payment can be calculated by following formula.

Price  = Dividend / Required rate of return

As we have the share price and the dividend amount we need to calculate the required rate of return.

Required rate of return = Dividend / Price

Placing value in the formula

Required rate of return = $2.50 / $25.00 = 0.1 = 10%

After New Expansion

Dividend = $1.50

Growth rate = 4%

The share price can be calculated by the dividend growth formula, as follow

Price of share = Dividend / (Rate of return - growth rate)

Price of share = $1.50 / (10% - 4%)

Price of share = $1.50 / 6%

Price of share = $25

7 0
3 years ago
You are given the three dates shown below. if you add up the year in which each date occurred and the month in which each date o
qwelly [4]
Sorry you need a little more detail for your question.
3 0
3 years ago
A public service ad on television shows a young boy resisting the attempts of someone off-camera to persuade him to accept drugs
Stells [14]

Answer: Attitude inoculation

Explanation:

Attitude inoculation is referred to as the technique or method which is used in order to make an individual immune to the attempts taken in order to change the attitude thereby firstly exposing themselves to the small arguments taken against their position. It is referred to as so since it tends to works similarly like a medical inoculation, that exposes an individual's body to the weaker state of the virus.

5 0
3 years ago
During a certain six-year period, the consumer price index (CPI) increased by 50%, but during the next sis-year period, it incre
liberstina [14]

Answer:

D. Deflation

Explanation:

"Consumer Price Index" <em>(CPI)</em> measures the changes in the weighted average of prices of a market basket (consisting of consumer goods and services). It tells the<u> cost of living for every consumer. </u>

"Inflation" refers to the sustained increase of prices of goods and services while "deflation" refers to the sustained decrease of prices of goods and services.

In the situation above, the CPI is considered lower than before, thus <u>deflation</u> must have occurred during the second six-year period. It shows a <u>negative inflation rate.</u>

So, this explains the answer.

7 0
3 years ago
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