Answer:
Explanation:
Calculation to determine future sales discounts
Using this formula
Value of Preferred Stock in year 5 =Annual Dividend/Required Rate
Let Plug in the formula
Value of Preferred Stock today =(6/6%)/(1+6%)^5
Value of Preferred Stock today =100/(1+6%)^5
=124.58
Answer:
The Journal entries are as follows:
(i) On March 1,
Cash A/c Dr. $297,500
To common stock (42,500 × $4) $170,000
To paid in capital in excess of par value $127,500
(To record the issuance of common stock)
(ii) On April 1,
Cash A/c Dr. $70,000
To common stock $70,000
(To issue no-par value common stock)
(iii) On April 6,
Inventory A/c Dr. $45,000
Machinery A/c Dr. $145,000
To common stock (2,000 × $25) $50,000
To paid in capital in excess of par value $46,000
To Note payable $94,000
(To record the issuance of common stock)
Answer:
The maturity risk premium is 1.0%.
Explanation:
The maturity risk premium or the 2-year security can be calculated as follows:
Maturity Risk Premium = Yield of the treasury note - Nominal risk free Interest rate
Nominal risk free Interest rate = Real risk-free rate of interest + Expected inflation = 3% + 2% = 5%
Therefore;
Maturity Risk Premium = 6.0% - 5.0% = 1.0%
Therefore, the maturity risk premium or the 2-year security is 1.0%.
The value of the marginal product of any input is equal to the marginal product of that input multiplied by the: <u>market price</u> of the output.
<h3>How to find the marginal product?</h3>
The marginal product can be defined as the change that occur due to the addition of an output to a unit of input .
The value of marginal product can be calculated by making use of this formula
Value of Marginal Product = Marginal physical product × Average revenue price of the product.
Therefore the statement that complete the statement is market price of the output.
Learn more about marginal product here:brainly.com/question/14867207
#SPJ1
