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Marizza181 [45]
3 years ago
14

Suppose the Chief Financial Officer (CFO) of a company is interested in raising funds for a major investment by issuing bonds of

varying maturity to investors. One of the longer-term bonds being issued can be purchased for $75,000.00 per bond and pays $7,125.00 annually to the investor. What is the anual interest rate on this bond
Business
1 answer:
anyanavicka [17]3 years ago
4 0

Answer:

9.5%

Explanation:

Interest rate on the bond = Annual payment on thr bonds / Cost of the bonds * 100

Interest rate on the bond = 7.125 / 75,000 * 100

Interest rate on the bond = 0.095 * 100

Interest rate on the bond = 9.5%

Thus, the annual interest rate on the bond is 9.5%

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Steven's Auto is trying to decide whether to lease or buy some new equipment costing $23,000 that has a life of three years, aft
jolli1 [7]

Answer:

$1,241

Explanation:

For computing the net advantage to leasing first we have to determine the total cash flow from leasing and total cash flow from buying which is shown below:

For leasing:

Year       Lease payment      PVF at 5.8%    Present value

1              $6,500                   0.9452             $6,144

2             $6,500                   0.8934             $5,807

3              $6,500                  0.8444              $5,489

Total outflow                                                   $17,440

For buy:

Year      Outflow or inflow     PVF at 5.8%    Present value

0            ($23,000)                    1                      ($23,000)

1              $1,610                       0.9452             $1,522

2             $1,610                        0.8934             $1,438

3              $1,610                       0.8444              $1,359

Total outflow                                                   $18,681

Now the net advantage to leasing is

= Buy outflow - leasing outflow

= $18,681 - $17,440

= $1,241

7 0
3 years ago
Joe is a single, self-employed individual who owns his own business. During 2019, Joe reported $200,000 gross income and $60,000
Soloha48 [4]

Answer:

Adjusted Gross Income =$ 102,000

Explanation:

Gross Income $ 200,000

Business Expenses $ 60000

Gross income earned from your self-employment $140,000

Less alimony to his former spouse $30000

Less Health Insurance Premium $6000

Less Medicine and Doctor fees $ 2000 (Assuming its under Qualified Medical Expenses)

Adjusted Gross Income =$ 102,000

Since mortgage interest relates to personal home, it is not deductiable.

5 0
3 years ago
Administrative and political decision-making procedures and intuition have been associated with high performance in unstable env
irina [24]

It is true that the administrative and political decision making procedures and intuition have been associated with high performance in unstable environment where decision must be rapidly taken.

<u>Explanation:</u>

In the cases of unstable environment in the businesses, certain decisions need to be take in a quick manner which might result in the changing in the business procedures. This has a direct effect on the stabilizing the environment of the business.

These decisions might be administrative in nature where the best alternative for the business procedure will be selected or political in nature where policies are changed to stabilize the environment.

8 0
3 years ago
What is the richest state?
Ivanshal [37]

Colorado not even kidding

8 0
3 years ago
A judge requires Harry to make a payment to Sally. The judge says that Harry can pay her either $10,000 today or $12,000 two yea
Stells [14]

Answer:

d. 9 percent

Explanation:

After 2 years the value of $10,000 at present time =

$10,000 * (1 + x / 100)^2 = $12,000

(1 + x / 100)^2 = 12,00 / 10,000

(1 + x / 100)^2 = 1.2

The square root of 1.2 is 1.0954

(1 + x / 100) = 1.0954

x = 9.54

9%( Approximately.)

7 0
3 years ago
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