Answer:
D. Capacity
Explanation:
In order to applying for a loan, the financial institution analyze the borrower information in terms of creditworthiness i.e. collateral property, cash on hand, repayment conditions, status of the job. These factors should be based on the capacity of the borrower whether he or she is eligible for a loan or not
Therefore according to the given situation, the option D is correct and the same is to be considered
The answer to that is Proprietorship
Answer:
if YTM at 4% price : $2,902.1237
if YTM at 8% price : $1,788.0448
The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value
Explanation:
the market price of the bond will be the present value of coupo payment and maturity:
C 150.000
time 30
rate 0.04
PV $2,593.8050
Maturity 1,000.00
time 30.00
rate 0.04
PV 308.32
PV c $2,593.8050
PV m $308.3187
Total $2,902.1237
No we repeat the process with the yield at 8%
C 150.000
time 30
rate 0.08
PV $1,688.6675
Maturity 1,000.00
time 30.00
rate 0.08
PV 99.38
PV c $1,688.6675
PV m $99.3773
Total $1,788.0448
Answer:
the additional funds needed is $667,500
Explanation:
The computation of the additional funds by using AFN is shown below:
AFN is
= Increase in assets - increase in liabilities - addition to retained earnings
= ($4,000,000×25%) - ($900,000 × 25%) - 10,750,000 × .04( 1 - 0.75)
= $1,000,000 - $225,000 - $107,500
= $667,500
hence, the additional funds needed is $667,500
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Explanation:
Loan 3000000
Interest 4%
There are three steps to solve correction of errors entries
Step-1 what entry have been made
Step-2 what should be the actual entry.
Step-3 what should be net entry to make it correct.
Step-1 what entry have been made
Accrued Expense payble 3000000*4% 120000
Cash 120000
Wrong entry that has been in books. instead of recording expense we have reduced the liability by debiting it.
Step-2 what should be the actual entry.
interest Expense 3000000*4% 120000
Cash 120000
The correct entry that should have been made
Step-3 what should be net entry to make it correct.
interest Expense 3000000*4% 120000
Accrued Expense payble 3000000*4% 120000
Now we have debited the expense that should be recorded and to increase the laibility we have credited the liability that have been decreased in entry 1.
