Explanation:
because you are not sure how good they are at working
Answer:
$1,073.60
Explanation:
bond's current price = PV of face value + PV of coupons
maturity = 10 years
face value = $1,000
coupon rate = 7% annual
market rate = 6%
PV of face value = $1,000 / (1 + 6%)¹⁰ =$558.39
PV of coupons = coupon x annuity factor (10 years, 6%) = $70 x 7.3601 = $515.21
market value at issue date = $558.39 + $515.21 = $1,073.60
since the bond's coupon rate was higher than the market rate, the bond was sold at a premium.
Answer:
Net Cash provided by Operating Activities $20,900.00
Explanation:
Cash Flows from Operating Activities
Net Income $16,000.00
Adjustments to reconcile Net Income:
+ Depreciation expenses.
$6,000.00
- Increase in Accounts receivables.
($6,000.00)
+Decrease in Inventory
$4,000.00
+Increase in Salaries Payable.
$900.00
Net Cash provided by Operating Activities $20,900.00
Answer:
The beta of the new project is 1.475
Explanation:
The beta is the measure of systematic or market risk associated to a stock. The beta is used in the calculation of the required/expected rate of return under the CAPM model. The CAPM model uses the following formula to calculate the required/expected rate of return,
r = rRF + Beta * (rM - rRF)
Plugging in the available variables, we can calculate the value of the beta.
0.154 = 0.036 + Beta * (0.116 - 0.036)
0.154 - 0.036 = Beta * 0.08
0.118 / 0.08 = Beta
Beta = 1.475
For the answer to the question above, t<span>he acquisition of land by issuing common stock is </span>a noncash transaction that is not reported in the body of a statement of cash flows. So the answer is A.
I hope my answer helped you.