Answer:
The answer is: C) PV of a perpetuity = StartFraction r Over Upper C EndFraction (I guess this means PV = r / C, which is FALSE)
Explanation:
The formula for calculating the present value of a perpetuity is:
PV = C / r
Where PV = Present Value, C = cash flow, r = discount rate.
A perpetuity is a stream of equal cash flows that lasts forever (perpetually).
The formula for calculating the present value of a perpetuity is simple, so there is no reason to spend time calculating the present value of each cash flow, since there are infinite cash flows.
A consol bond s a type of perpetuity issued by the British government (also by the US government)
The best way to ensure the accuracy and safety of your accounts is to : monitor your online accounts regularly
You can never now if somehow your connection is monitored and compromised. Checking your accounts regularly will help you to be prepared for unexpected occurrences
hope this helps
Answer:
Given that,
Value of bonds issued = $100,000
Maturity period = 10 years
Bonds were issued at face value.
Interest rate = 8%
Interest is paid once per year on December 31.
Since, the bonds are issued at the face value, so there would be no premium or discount on the issue of bonds.
The cash is received by the company for issuing bonds and it is debited. We know that bonds are a part of liabilities, so they are credited
Therefore, the journal entry is as follows:
Cash A/c Dr. $100,000
To bonds payable $100,000
(To record the issuance of bonds)
Answer:
D
Explanation:
Since Sula is making her decision based on what would be environmentally friendly, she is being socially responsible, but not necessarily analyzing the other variables. Therefore, the answer is D. Hope this helps!
