Meanwhile, other websites utilise the homepage to attract users to create an account.
Answer:C
Explanation:
If the Federal Government buys bonds, it means it is increasing money supply on the market. Prices and interest rates therefore increase including the reserve ratio
Answer:
The maximum amount that should be paid today is $11.29
Explanation:
The constant growth model of the DDM approach can be used to calculate the price or fair value per share today based on the expected dividends that the stock will pay. As the dividends are declining n this case, the dividend growth will be negative i.e. -1.5%
The formula for the price of share today is,
P0 or V = D1 / r - g
Thus,
P0 = 1.75 / (0.14 + 0.015)
P0 = $11.29
The answer is 391 667
I think it is right so be sure to check just in case
good luck
Answer:
Journal Entry
January 1
Dr. Cash $940,000
Dr. Discount on Account Receivable $60,000
Cr. Bond Payable Account $1,000,000
Explanation:
The difference between the face value of the bond and the sale value of the bond is known as premium or the discount on the bond. If the face value is higher from the sale value the bond is issued on the discount and if the sale value of the bond is higher than the face value the bond is issued on the premium.
Discount on the Bond = Face value - Sale value = $100,000 - $940,000 = $60,000
The discount amount will be recorded in Discount on Bond Payable Account and will be amortized over the 10 years until the maturity of the bond.
