Answer:
a. $880.74
b. 13 years
Explanation:
a. Conversion ratio = Current Value of bond / Conversion price = 1,000 / 93.4 = 10.71
Conversion price of bond = 10.71 × 28.60 = $306.31
Coupon = Par value of bond * Coupon rate = $1,000 * 6.4% = $64
Present value of straight debt is calculated below:
Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]
= $64*11.93 + $117.46
= $763.28 + $117.46
= $880.74
.
Therefore, the minimum value of bond is $880.74
b. Conversion ratio = 10.71
Current stock price = $28.6
Suppose number of year the stock will take to reach above $1,140 is t.
Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t
$1,140 = $28.6 * 10.71 * (1.108)^t
(1.108)^t = 3.7218
t = 12.8145 year.
t = 13 years
Answer:
2. Assets increase by #13,750.
3. Assets decrease by $2,500; liabilities decrease by $2,500.
4. Assets increase by $9,000.
5. Assets decrease by $1000 ; owners equity decrease by $1000
Explanation:
2. Billing costomers for delivery services increases the amount of assets as the accounts received are gonna increase by $13,750 and delivery services also increases the revenue by $13,750.
3. Assets decrease by $2,500; liabilities decrease by $2,500.
4. cash receipts increase the Assets by $9,000 and the accounts receivable decrease by $9,000.
5.cash payments causes Assets to decrease by $1000 and owners equity decrease by $1000
Answer:
18 years
Explanation:
Given that;
P= $23,000
A= $76,300
r= 6.7%
From
A = P(1 + r/100)^n
76,300 = 23,000 (1 + 0.067)^n
3.3 = (1.067)^n
Taking logarithm of both sides
log 3.3 = log (1.067)^n
log 3.3 = nlog(1.067)
n= log 3.3/log 1.067
n= 0.5185/0.0282
n= 18 years ( to the nearest year)
Answer:
True. (unless your in advanced classes)
if your in advanced classes you would be classified as smarter than a certain grade level.
sorry if this doesn't help.
I Believe his responses were ironic.
The two and a half monts time were interferring with his decision to do missionary services in Africa. So even though Samba was happy about the news, he's going to kill his lifelong dream if he decided to take the job from Madame.