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____ [38]
3 years ago
11

Waterhouse Company plans to issue bonds with a face value of $503,500 and a coupon rate of 8 percent. The bonds will mature in 1

0 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 6 percent.
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer:

$578,408

Explanation:

face value = $503,500

maturity = 10 years x 2 = 20 periods

coupon rate = 8% / 2 = 4%

coupon = $20,140

YTM = 6% / 2 = 3%

using a financial calculator, the PV of the bonds = $578,408

Dr Cash 578,408

   Cr Premium on bonds payable 74,908

   Cr Bonds payable 503,500

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Dvinal [7]

Answer:

$75.12 million

Explanation:

For computation of Valence's share price first we need to find out the share price which is shown below:-

Share price = (Paid earning of Valence × Ended year of expected earning) ÷ (Equity cost of capital - Expected growth rate)

= (40% × $800 million) ÷ (9% - 7%)

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Now, Valence's share price

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3 years ago
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The contract must be very detailed and should include all the contingencies spelled out in it.

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Contract is a document that is made between two or more than two parties who have come in to an agreement with each other over a particular thing. The contract might be a business contract that the parties make which should have the proportion of profit and liabilities of the business that is to be shared among the partners.

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OleMash [197]

Answer:

Reversionary interest

Explanation:

If Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a reversionary interest.

A reversionary interest can be defined as a property law (deed) which states that when a property such as a land transfer is used on a clause; “for so long as” or “on condition that."

Hence, once the interest of the benefactor comes to an end, the property reverts back to its original owner (grantor). It also gives the grantor's next of kin, successor or heir the power or right to take the property back in the future if promises are broken or the agreement comes to an end.

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