56

Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the

Triss [41]

Answer:

ATTACHED file with the bonds schedule

Explanation:

First, we solve for the proceed from the issuance:

PV of the coupon:

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

C 25,000.000 (500,000 x 10%/2)

time 7 (3 and a half year x 2 payment per year)

rate 0.06 (12% annual / 2)

$25000 \times \frac{1-(1+0.06)^{-7} }{0.06} = PV\\$

PV $139,559.5360

PV of maturity:

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

Maturity 500,000.00

time 7.00

rate 0.06

$\frac{500000}{(1 + 0.06)^{7} } = PV$

PV 332,528.56

PV c $139,559.5360

PV m $332,528.5568

Total $472,088.0928

Then we construct the bonds schedule as follows:

procceds 472,088

face value 500,000

discount on bonds payable -27,912

bond rate 0.05

market rate 0.06

ionterest expense: carrying value times market rate:

472,088 x 0.06 = 28,325.29

cash outlay 25,000

amortization 3,325.29

carrying value after first payment:

472,088 + 3,325.29 = 475,413.29

and the process repeat for all periods.

3 0

2 years ago

Solving for dominant strategies and the Nash equilibrium

Svetach [21]

Question Completion:

Matrix payoff:

Sharon

Left Right

Paolo Left 8, 3 4, 4

Right 5, 3 5, 4

Answer:

The only dominant strategy in this game is for ___Paolo______ to choose ____Right______.

The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses ____Right______ and Sharon chooses __ Right_____.

Explanation:

a) Paolo's dominant strategy is the strategy that always provides the greater utility to Paolo, no matter what Sharon's strategy is. In this case, the dominant strategy for Paolo is to choose RIGHT always.

b) The Nash Equilibrium concept determines the optimal solution in a non-cooperative game in which each player (e.g. Paolo and Sharon) lacks any incentive to change their initial strategies. This implies that each player can achieve their desired outcomes by not deviating from their initial strategies since each player's strategy is optimal when considering the decisions of the other player.

3 0

2 years ago

Match the word or phrase with the best description of it. a. select the correct word or phrase An expression about whether finan

liubo4ka [24]

Answer Explanation

An expression about whether financial statements conform with generally accepted accounting principles

Audition. If the statement had been done conformed to GAAP it will be a positive audit.

business that raises money by issuing shares of stock:

Corporation, raise fund from issuance of stock

The portion of stockholders’ equity that results from receiving cash from investors

Capital or total paid-in capital

Obligations to suppliers of goods

Account Payable is the liability account to represent thedebt with suppliers

Amounts due from customers

Account receivable represent the amount to collect from customer

A party to whom a business owes money

It is a debtor to the company and will be state under:

Account Receivable or Note receivable accounts

A business that is owned jointly by two or more individuals but does not issue stock.

partnership are integrate by more than one party

8 0

3 years ago

Which statement is not correct about the business-society interdependence?

Dmitry_Shevchenko [17]

Answer:

D. Actions by governments rarely significantly affect business

Explanation:

Business-socciety interdependence points out how business activities impact society and how society impacts business decisions. Government actions play a significant role in business performance. For example, an increase in interest rate increases the cost of borrowing and acts as an investment disncentive. Likewise, an increase in corporation tax stifles the incentive to invest and reduces corporate profit. Other government interventions such as standards and regulations, minumum wage legislations, permits and licenses would not only reduce business profits but could make doing business very cumbersome. Also, the extent to which the government is committed to maintaining political stability could determine the extent to which invesmtent thrives in an economy.

6 0

3 years ago

An increase in income is always possible with out increasing expenses.<br> O True<br> False

vaieri [72.5K]

The answer is true because you don’t always have to increase your expenses .

3 0

3 years ago