Answer:
8%
Explanation:
Calculation for the annual market interest rate on the bonds
Using this formula
Annual market interest rate=(Interest expenses/Carrying value)× 2 payments per year
Where,
06/30/2021 Interest expenses=$7,581
01/01/2021 Carrying value =$189,516
Let plug in the formula
Annual market interest rate=
($7,581/ $189,516)×2 payments per year
Annual market interest rate=0.04×2 payments per year
Annual market interest rate=0.08×100
Annual market interest rate=8%
Therefore the the annual market interest rate on the bonds will be 8%
It seem like there are information missing on the question posted. Let me answer this question with all I know. So here is what I believe the answer is, spending.
Hope my answer would be a great help for you. If you have more questions feel free to ask here at Brainly.
Answer:
Operating cash flow = $501
Explanation:
Given:
Total sales = $1,460
Total cost = $800
Depreciation = $130
Tax rate = 30% = 0.30
Find:
Operating cash flow
Computation:
Earning Before Interest and Tax = $1,460 - $800 - $130
Earning Before Interest and Tax = $530
Tax = Tax rate x $530
Tax = 0.30 x $530
Tax =$159
Operating cash flow = $530 + $130 - $159
Operating cash flow = $501
Answer:
Stock Price in 5 years: $97.94. Stock Price Today: $55.575
Explanation:
A pay-out ratio is computed by dividing dividends per share over earnings per share. Meanwhile, PE or Price-Earnings Ratio is computed by dividing the market value of stocks over earnings per share. Thus, using the pay-out ratio formula, the earnings per share is 2.925 ($1.17/40%) and using the PE ratio formula, the market price of stocks today is $55.575 (19 x 2.925). After 5 years, multiplying 1.17 and 12% rate raised to the 5th power, the dividend will amount to $5.1548. Using pay-out ratio, earnings per share is 5.1548 ($2.0619/40%) and the market price of stock after 5 years is $97.94 ($5.1548 x 19).
Answer:
Yes
Explanation:
In this question, we have to compare the total income based on credit extended The computation is shown below:
If credit is not extended, then the total income would be
= Service revenue + income from operations
= $48,000 + $19,000
= $67,000
If credit is extended, then the total income would be
= Service revenue + income from operations - additional expenses for wages and bad debts
= $87,000 + $19,000 - $34,000
= $72,000
Yes the company extend credit as the total income is increased by $5,000