Answer:
At June 30th, 2020 an investor will purchase the bonds at 197,327 which is the present value of the bond at the market rate.
<u>June 30th entries:</u>
interest expense 11,627.4 debit
discount on bonds payable 627.4 credit
cash 11000 credit
/effective method
interest expense 11,776.25 debit
discount on bonds payable 776.25 credit
cash 11000 credit
/straight-line method
the tables are attached to the answer.
Explanation:
effective method
procceds 193,790
face value 200,000
discount on bonds payable 6,210
bond rate 0.055 (11% annual / 2 payment per year)
market rate 0.06 (12% annual / 2 payment per year)
straight line:
6,210 / 8 (4 years and 2 payment per year) = 776,25
Answer:
Explanation:
a). Total share amount = number of shares bought*price per share = 400 x 149 = 59,600
Initial margin requirement = 55% x 59,600 = 32,780 (This is the equity which you put up. The remainder will be the loan which the brokerage gives you.)
b). Loan amount = Total amount - equity = 59,600 - 32,780 = 26,820
Let the price at which margin call is received be P. Then,
(Market value of shares - loan amount)/market value of shares = maintenance margin
(400P - 26,820) / 400P = 30%
280P = 26,820
P = 95.79
When the share price falls below this price, you will receive a margin call.
Answer:
Net earning per month = $2,072
Net earning per year = $26,936
Explanation:
Given:
Amount earn per hour = $18.50
Number of hour in a week = 40 hours
Taxes and deduction = 30% = 0.3
Find:
Net earning per month
Net earning per year
Computation:
Net earning per month = [Amount earn per hour][Number of hour in a week][Number of week in a month][1-Taxes and deduction]
Net earning per month = [18.50][40][4][1-03]
Net earning per month = $2,072
Net earning per year = [Amount earn per hour][Number of hour in a week][Number of week in a year][1-Taxes and deduction]
Net earning per year = [18.50][40][52][1-0.3]
Net earning per year = $26,936
Answer: Stand alone principle
Explanation:
Stand alone principle is the principle that is used by a company to decide whether or not to engage in a project based on the profitability of identical projects that has the same risk. Stand alone principle allows firms to evaluate a project based solely on the incremental cash flows of a firm that is related to the project.
Without stand-alone principle, the project evaluation for a firm would require the forecast of all of the firm’s cash flows.
Answer:
Switching to consumer driven health plans
Explanation:
Meridith should include switching to consumer driven health plans in her list of strategies since she is trying to reduce health care benefits costs.
A consumer-driven health plan allows the workers in an organization, it could be both employers and their employees, to put aside amounts of money usually pre-tax money, which could be used to pay for qualified medical expenses not covered by their health plan.
