Answer:
b. Face value plus unamortized premium
Explanation:
When bonds are sold for more than their face value, such bonds are to be sold on <em>premium. </em>Mean that the in addition to the face value, an unamortized premium has been paid.
Such cases arises when the coupon payments made by bond are greater than the market rates.
Example: Let's say Samsung issues bonds at<u> 1</u><u><em>0% coupon rate for 5 years</em></u> bond while the market rate for the same <em><u>5 year bond is 8%</u></em>. The Samsung is said to have sold the bond on <u>premium.</u>
Answer: Vroom and Yetton's normative decision model.
Explanation:
The Vroom–Yetton normative decision model is a situational leadership theory of industrial and organizational psychology that was developed by Victor Vroom, in collaboration with Phillip Yetton and later with Arthur Jago. The situational theory argues the best style of leadership is contingent to the situation.
Regarding decision making, the Vroom-Yetton model suggests that being autocratic, seeking advice, considering alternative approaches before a decision is made, informing a group on an issue, and letting that group develop the solution without forcing your own ideas are all important at times.
Answer:
$49.01 per Share
Explanation:
We can find the value of the unit share of company that will be dissolved at the end of year 2 by using the following formula:
<u>Current Price per Share = Value of Firm Today (Step1) / Number of Shares</u>
= $1,862,345 / 38,000 shares
= $49.01 per Share
<u></u>
<u>Step 1: Find the value of the firm in today's price by using the discounting technique</u>
Value of Firm Today = Cash Flow for Year 1 / (1+r)^1 + Cash Flow for Year 2 / (1+r)^2
= $860,000 / (1 + 11%)^1 + $1,340,000 / (1 + 11%)^2
= $774,774 + $1,087,571
= $1,862,345
Answer:
True
Explanation:
<em>Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rat</em>
<em>Under the traditional absorption costing system, overhead is assigned to units produced using different bases ranging from labour hours, machine hours, e.t.c</em>
Overhead absorption rate = Estimated overhead/Estimated Activity level
Answer : True
Answer:
Beckett Co received $ 10.699,65
Explanation:
We have to determnate the balance of the invoice after the returned and the discount granted. We also have to receive the freight from the customer as we prepaid them to refund this amount against the customer:
invoice balance:
11,700 nominal less 1,350 return = 10,350
discount granted: 10,350 x 1% = (10.35)
freight refund <u> 360 </u>
total cash proceeds: 10.699,65
