Answer:
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Answer:
The answer is $788.12
Explanation:
Price of the bond is what the issuer will pay for the bond
The payment is semiannual.
Number of years (N) - 20 periods (10 years x 2)
Yield-to-maturity(YTM) - 7%( 14% ÷ 2)
Present Value(price of bond) = ?
Future Value(FV) = $1,000
Payment Coupon(PMT) = $50[(10% x $1000) ÷ 2]
Using a Financial calculator, price of the bond on semiannual basis is
$788.12
Answer:
Microsoft is the answer of it
Answer:
The multiple choices are
a. $240,000
b.
$228,000
c.
$216,600
d.$205,770
e.
$0
The correct option is E,$0
Explanation:
The funding required from equity is 40% of the projected capital budget of $2000,000 which is expected to be from the profit attributable to stockholders since new issue of shares is not contemplated.
In other words, dividends payable to shareholders is the net income less their counter funding of the project which is computed below:
residual dividends=net income-(equity%*capital outlay)
residual dividends=$300,000-(40%*$2000,000)
=$300,000-$800,000=$0
In essence the $300,000 is not even enough as funds expected from equity less alone paying excess as dividend
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