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JulijaS [17]
3 years ago
6

To everyone I offended, I'm very sorry for what I said and I promise not to use that language again on this site this goes mainl

y to the moderators.
Business
1 answer:
Julli [10]3 years ago
8 0

Answer:

Ok. You are forgiven.

Explanation:

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Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of thi
Wewaii [24]

Answer and Explanation:

The identification of each transaction as an explicit cost or implicit cost is as follows

a. It is an explicit cost as the cost would be paid to the factors of production

b. It is also an explicit cost as the cost would be paid to the factors of production

c. It is an implicit cost as it is considered to be the hidden cost

d. It is also an implicit cost as it is considered to be the hidden cost

5 0
3 years ago
Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on De
kondaur [170]

Answer:

The bonds were issued at $220,879,628.13

This is lower than the face value to compensate for the lower coupon payment.

cash               220,879,628.13   debit

discount on BP  39,120,371.87   debit

   bonds payable      260,000,000 credit

--to record the issuance of the bonds--

Interest expense 13,252,777.69 debit

Discoun on BP               252,777.69 credit

 cash          13,000,000      credit

--to record the first interest payment--

Interest expense 13,267,944.35 debit

        Discount on BP                267,944.35 credit

 Cash          13,000,000     credit

--to record second interest payment--

Interest expense 13,539,156.67 debit

Discount on BP              539,156.67 credit

cash                   13,000,000.00 credit

--to record Dec 31st, 2025 payment--

Explanation:

To determinate the price we will solve for the present value of the coupon payment and maturity at the market rate of %12

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment:

260,000,000 x 10% x 1/2 =13,000,000.000

time 20 years x 2 payment per year 40

yield to maturity  12% / 2 = 6%

13000000 \times \frac{1-(1+0.06)^{-40} }{0.06} = PV\\

PV $195,601,859.3298

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   260,000,000.00

time   40.00

rate  0.06

\frac{260000000}{(1 + 0.06)^{40} } = PV  

PV   25,277,768.80

PV c $195,601,859.3298

PV m  $25,277,768.8042

Total $220,879,628.1340

For the journal entries, we will multiply this current market price of the bonds by the market rate (YTM) the difference between this and the actual cash obligation generate by the bond is the amortization of the discount.

<u>first interest payment </u>

$220,879,628.13 x 6% = 13,252,777.69

less actual cash outlay:  13,000,000

amortization                          252,777.69

<u>second interest payment</u>

($220,879,628.13- $252,777.69) x 6% = 13,267,944.35

less actual cash outlay:                      <u>     13,000,000.00</u>

amortization                                                   267,944.35

December 31st, 2025:

This will be payment 14th

after building the schedule until that date we got:

8 0
3 years ago
Type the correct answer in the box. Spell all words correctly. Jason is the marketing head at his company. He was working on the
nikdorinn [45]

Answer:

Finance department.

Explanation:

6 0
3 years ago
Read 2 more answers
Eastern electric currently pays a dividend of about $1.64 per share and sells for $27 a share.
EastWind [94]

Answer:

The investors should expect to 9.26% of Return.

Explanation:

The Dividend Discount Model for Constant Growth should be used here.

DDM = Current Price = Dividend of Year 1 / (Required Return - Growth Rate)

Dividend of Year 1 = 1.64 (1.03) = 1.6892.

Re-arrange the above model for Required Return and put values:

Required Return = (1.6892 / 27) + .03 = .0926 OR 9.26%.

Thanks!  

6 0
3 years ago
Read 2 more answers
Mike says, "The possibility that my house may burn isa pure risk for me, but if I buy insurance, it is a speculativerisk for the
PilotLPTM [1.2K]

Answer:

I agree with Mike because pure risks involve only possible losses. Since he owns his house, the possibility of it burning down would represent only a loss to him.

But if he buys insurance, he will pay an insurance premium which means that if the house burns down, the company will lose money, but if the hose doesn't burn down, the insurance company will make a profit. This represents speculative risk because the possibility of a gain and a loss exist.

3 0
3 years ago
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