PLEASE HELP ME ON THIS QUESTION!!!! I WILL GIVE 5 STARS, A THANKS, AND BRAINLIEST!!!!
2 answers:
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Answer:
bond under priced is $14.18
Explanation:
given data
market price = $1,050
annual interest = $100
rate of return = 9 percent
time period = 10 year
solution
we get here bond mis priced so for we get first theoretical Price of the bond that is
theoretical Price of the bond = annual interest × +
........1
theoretical Price of the bond = 100 × +
theoretical Price of the bond = $1064.18
but actual Price is $1050
so here bond is under priced as $1064.18 - $1050
bond under priced is $14.18
Answer:
<em>Increase to Cash dividends</em>
Explanation:
The entry on declaration of dividend is Retained earnings debit and credit is given to dividend payable. The cash dividend will increase to shareholders as a result of this action. The dividend payable will increase. Cash is not affected when dividends is declared. Cash is affected only when dividend is paid on August 15, 2017. Cash dividend will not decrease since dividend is paid it will increase. There are total 2 entries passed one on July 15th for dividend declaration and on August 15th for dividend payment. The record date of July 31 is only for determining which shareholders are eligible for dividend and no entry is needed.
