Who do you like better?? BTS or BlackPink???

Ruth Lewis is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market int

bearhunter [10]

Answer:

Bond Price = $580.2640476 rounded off to $580.26

Explanation:

A zero coupon bond is a kind of bond that does not pay interest to the bond holder like other bonds. Instead it is offered at a discount price and pays the par value at maturity. The discount price is calculated using a certain rate which can also be called the implied interest rate on this zero coupon bond. The formula to calculate the price of the zero coupon bond is,

Bond Price = Par Value / (1 + r)^t

Where,

r is the interest rate or the discount rate
t is the number of periods to maturity

Bond Price = 1000 / (1+0.115)^5

Bond Price = $580.2640476 rounded off to $580.26

7 0

3 years ago

Ravine Corporation purchased 30 percent ownership of Valley Industries for $92,700 on January 1, 20X6, when Valley had capital s

Maslowich

Answer:

The Various answers are clearly explained in the Explanations. Thank you.

Explanation:

First, we calcuate the Net Income of Ravine Corporation Based on the FairValue Method

Year OPerating Income UnrealizedGain Dividend inc. Net Income

20x6 $140,000 11,000 6,000 $157,000

20x7 80,000 11,000 12,000 $103,000

20x8 220,000 11,000 12,000 $243,000

20x9 160,000 11,000 6,000 $177,000

Kindly note, thta the dividend income for each year is based on 30% of the Dividend of Valley for that year for instance, Dividend income for 20x6 = 0.3 x $20,000 = $6,000

Next we calculate the Net Income of Ravine Corpoartion Under the Equity Method

Year OPerating Income Share ofo Income in Valley Net Income

20x6 $140,000 9,000 149 ,000

20x7 80,000 15,000 95,000

20x8 220,000 3,000 223,000

20x9 160,000 12,000 172,0000

NOte as well that the Share of Income in Valley is 30% of the yearly net income of Valley Industries.

Question B) Part 1

Ravine Corporation Journal Entries

S/N Description Debit Credit

1 Cash 12,000

Dividend Revenue 12,000

Being the record of dividend received from valley industries

2. Fair Value Adjustment 11,000

Unrealized holding gain or loss 11,000

Being the rcord of fair value change in value of the investments

Question B) Part 2

S/N Description Debit Credit

1 Cash 12,000

Investment in Valley 12,000

Being the record of dividend received from valley industries

2. Investment in Valley 3,000

Investment Income 3,000

BBeing the share of income of Ravine in Valley

6 0

3 years ago

You just took out a $12,000 loan for your small business. the loan has a four year term and repayment is in the form of four eq

umka2103 [35]

Answer: $403.20

Explanation:

We use a mortgage calculator to calculate the interest paid in the final payment. Since each repayment is made at the end of year, the repayments are annual payments. So, the calculator should have an annual amortization schedule to solve the problem.

I used http://www.calculator.net/loan-calculator for the calculation because it has an annual payment schedule. Then, I went under the subtitle Paying Back a Fixed Amount Periodically because the payments are equal. In that online calculator, I just input these data:

- Loan Amount: $12,000
- Loan Term: 4 (Loan term is number of years to pay the loan)
- Interest Rate: 11.5%
- Compound: Annually (APY)
- Pay Back: Every year

Then, I clicked the calculate button and view amortization table. The annual amortization schedule is attached in this answer.

To determine the interest paid at the final payment, I looked at payment #4 because the final payment is at the 4th year. (The loan is paid in 4 annual payments).

As seen in the attached image, the interest paid in payment #4 is $403.20. Hence, the interest paid in the final payment is $403.20.

3 0

3 years ago

What are consumer motives?

Marrrta [24]

Explanation:

The motivation for consumption comes from individual needs and desires, which may occur consciously and unconsciously. To meet their needs and wants, people identify and buy products and services that are compatible with their satisfaction.

There are several surveys and studies that seek to identify consumer behavior and explain how the purchasing decision process occurs. One of the most widespread theories in the world is Maslow's theory, which presented a hierarchy of needs that aims to identify a priority system of human needs satisfaction, divided into five parts, which are arranged in order of importance:

physiological,
safety,
love,
esteem and
self-actualization

This theory is of great relevance to help marketers target their strategy according to the priority and need of individuals, including in their campaigns messages that send the consumer a sense of urgency for the product or service, directing marketing communication to the bottom of the hierarchy, which is the consumer's priority.

3 0

3 years ago

Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorpti

erik [133]

Answer:

Differences in Operating Incomes Under Absorption Costing and Variable Costing:

The 2020 operating income under absorption costing is greater than the operating income under variable costing because

the ending inventory has carried over some fixed manufacturing costs, making the cost of goods sold less than under variable costing.

Explanation:

The differences in the operating incomes obtained under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory and carried forward to the next accounting period while the ending inventory under variable costing does not include any fixed manufacturing costs. Absorption costing is based on full costing system but, variable costing does not include the full costs.

6 0

2 years ago