45.18

Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2018, that pay interest semiannually on June 30 and December 31

dusya [7]

Answer:

Legacy

The total bond interest expense to be recognized over the bond's life is:

= $189,172.82

Explanation:

a) Data and Calculations:

Face value of 5.5% bonds issued = $660,000

Proceeds from the bonds issue = 648,412

Bonds discounts = $11,588

Interest payment = semiannually at 2.75% (5.5%/2)

Market interest rate = 6%

Effective semiannual interest rate = 3% (6%/2)

N (# of periods) 8

I/Y (Interest per year) 3

PV (Present Value) 648412

PMT (Periodic Payment) 18150

Results

FV = $982,784.82

Sum of all periodic payments = $145,200.00

Total Interest = $189,172.82

6 0

3 years ago

At the Bourg Company, a primary ______ is to increase the monthly revenue by 10%. Bourg considers revenue targets a key part of

mr_godi [17]

Considering the subsequent description given in the question, At the Bourg Company, a primary sales goal is to increase the monthly revenue by 10%.

This is evident in the fact that Bourg considers revenue targets a vital part of the company strategy. Here, the revenue of a company is derived from sales.

Also, given that the targets at the Bourg Company are stated in clear, precise, and measurable terms, and they always specify a time frame for completion, this is an example of a sales goal.

Sales goal is a term used in business management to describe the defined goals for a firm's sales team.

Sales goals could be expressed as increasing revenue by 13% in a year or improving customer retention by 18%.

Hence, in this case, it is concluded that the correct answer is "sales goals."

Learn more here: brainly.com/question/23162020

6 0

3 years ago

Which of the following are the names given to the two types of stock purchasers?

AlekseyPX

Answer: Common and Preferred Stock Purchasers

Explanation:

6 0

2 years ago

A company forecasts free cash flow in next year to be $20 million, $25 million in second year, and 30 million in third year. Aft

Norma-Jean [14]

Answer:

Current value from operations is $534.71 million.

Explanation:

The value from operations can be calculated by discounting back the free cash flow of the firm. The first three year's FCF will be discounted back using the WACC and when the growth rate o FCF becomes constant after Year 3, the terminal value will be calculated and discounted back too.

The current value from operations = FCF1 / (1+WACC) + FCF2 / (1+WACC)² + FCF3 / (1+WACC)³ + [FCF3 * (1+g) / WACC - g] / (1+WACC)³

Current value from operations = 20 / (1+0.1) + 25 / (1+0.1)² + 30 / (1+0.1)³ + [30 * (1+0.05) / (0.1 - 0.05)] / (1+0.1)³

Current value from operations = $534.71 million

8 0

3 years ago

Read 2 more answers

When joseph, a restaurant manager, plans, he sets goals and then decides how to achieve them. this is the definition of planning

Margarita [4]

This is a true statement. When Joseph is setting these plans, he is giving himself a roadmap on how he and his employees will best achieve these goals over the timeframe required. By planning, he can make sure that the business stays on track to meet whatever figures the company has set forth.

8 0

3 years ago