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Kryger [21]
3 years ago
12

Trego Company issued, payable on December 31, 2015, $10,000 face value, 8%, 4-year bonds. Interest will be paid annually each De

cember 31. Market interest rate on similar bonds is 6%. Trego uses the effective interest rate method of amortizing bond discount or premium. (PV of annuity; n; n=4;i=6%)=3.46511 (PV; n=4;i=6%)=0.79209 What is the issuing price?
a. $9,503.
b. $10,735.
c. $10,693.
d. $9,603.
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer: $10693

Explanation:

The issuing price can.wb calculated thus:

Firstly, we'll calculate the annual interest which will be:

= $10000 × 8%

= $800

The present value of the interest will be:

= 800 × pvifa (6%,4yrs)

= 800 × 3.46511

= 2772.09

Pv of face value will be:

= 1000 × pvif(6%,4yrs)

= 10000*0.79209

=7920.90

Therefore, the issuing price will be:

= PV of interest + present value of face value

= 2772.09 + 7920.90

= 10692.99

= $10693

Therefore, issuing price is $10693.

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lisabon 2012 [21]

Answer:

Rate of change of rent [Seattle] = $95.5

Explanation:

Given:

2009 Rent $583

2015 Rent  $745

2009 Boston $1,577

2015 Boston $2,150

2009 Seattle $958

2015 Seattle $1,600

Find:

Rate of change of rent [Seattle]

Computation:

Rate of change of rent [Seattle] = Change in price / Change in time

Rate of change of rent [Seattle] = [$2,150 - $1,577] / [2015 - 2009]

Rate of change of rent [Seattle] = $573 / 6

Rate of change of rent [Seattle] = $95.5

8 0
3 years ago
You are a communication designer for a design company. Your team is working on a project designing an interior office space for
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This is incomplete because the question is missing, here is the missing question and options:

Which phase of team development does this situation describe?

A. Performing

B. Norming

C. Forming

D. Storming

The answer to this question is B. Norming

Explanation:

In team development, norming is the third stage in the process of creating a team and making its members work together. This stage occurs after members have known each other (forming) and had solved their problems (storming). Due to this, during this stage members are able to work together and there are clear roles, which facilitates communication and adaptation. This stage is the one described because roles have been defined "everyone is taking on leadership functions related to their roles" and it seems the integration after three months facilitates communication and changes "report back to the rest of the team and smoothly adjust the project plan."

4 0
3 years ago
Consider the following information about an asset that is being review for impairment: Book value $ 700,000 Estimate future cash
erastovalidia [21]

Answer:

The amount of the impairment loss for this asset is <u>$110,000</u>

Explanation:

A assets is impaired when the fair market value of that assets lowers than the book value of the asset.

To calculate the impairment of an assets following formula is used

Impairent = Book value of Asset -  fair market value of the asset

Placing values in the formula

Impairent = $700,000 -  $590,000

Impairent = <u>$110,000</u>

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On January 1, Graves Corporation had 60,000 shares of no-par common stock issued and outstanding. The stock has a stated value o
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Answer:

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June 15 Cash dividends are declared $1.50 per stock

  • Dr Retained Earnings account 103,500
  • Cr Dividends Payable account 103,500

July 10 The company paid the dividends

  • Dr Dividends Payable account 103.500
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December 31 Cash dividends are declared $1.60 per stock

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6 0
3 years ago
The fact that a hot dog cost five times more at disneyland than at sam's club is an example of ________.
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captive product pricing, Disney offers lower prices to enter the park but higher prices once in the park because the audience is captive

4 0
3 years ago
Read 2 more answers
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