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2 years ago

8

The __________ doctrine states that employers have as much right to fire workers as the workers have to leave the company volunt

arily.

1 answer:

I am Lyosha [343]2 years ago

3 0

It’s employment at will

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On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $168 million. The bonds were priced at $147.2 million

bagirrra123 [75]

Answer:

(A)Balance sheet

Bonds at September 30th

Bonds Payable 168,000,000

Discount on Bonds (20,152,000)

Interest Payable 12,600,000

Net 160,448,000

(B) Income Statment

Interest Expense 13,248,000

(C)Cash Flow Statment

Financing

Cash generate for Bonds issued 147,200,000

Explanation:

Jan 1st, 2018 168,000,000 face value

Issed at 147.2M for an effective rate of 12%

Discount of 20.8M

Bonds at September 30th

<em>accrued interest expense:</em> 147,200,000 x 12% x 9/12 = 13,248,000

<em>interest payable: </em>168,000,000 x 10% x 9/12 = 12,600,000

<em>amortization of Discount:</em> 648,000

7 0

2 years ago

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua

CaHeK987 [17]

Answer:

The current price of the bond would be € 898.87

Explanation:

Hi, we need to bring to present value the coupon payments and also the face value of the coupon in order to find the price of this bond, that can be done by using the following formula.

$Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }$

Where:

Coupon = 1,000*0.078=78

Yield = 0.089 (or 8.9%)

Face Value= 1,000

n = 20 coupon payments

So, everything should look like this.

$Price=\frac{78((1+0.089)^{20}-1) }{0.089(1+0.089)^{20} } +\frac{1,000}{(1+0.089)^{20} }$

$Price=717.13+181.74=898.87$

Therefore, the price of this bond is € 898.87

Best of luck.

7 0

2 years ago

The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bon

MaRussiya [10]

Answer:

Ans. The after tax cost of this bond is 2.09%

Explanation:

Hi, first we need to establish the cash flow of the bond, so we can find the after tax cost of the bond. After we find the after tax cash flow of the bond, we must use the IRR function of MS Excel to find the semi-annual cost of this debt, but, all after tax debts should be presented in annual basis. Let me walk you through the process. First, let me show you how it should look.

Face Value 100

price 101,4

years 7 years

Coupon 9%

Coupon 4,5% semi-annually

tax 30%

Per Cash Flow After Tax

0 101,4 101,4

1 -4,5 -3,15

2 -4,5 -3,15

3 -4,5 -3,15

4 -4,5 -3,15

5 -4,5 -3,15

6 -4,5 -3,15

7 -4,5 -3,15

8 -4,5 -3,15

9 -4,5 -3,15

10 -4,5 -3,15

11 -4,5 -3,15

12 -4,5 -3,15

13 -4,5 -3,15

14 -104,5 -73,15

Cost of Debt 1,04% semi-annually

Cost of Debt 2,09% annually

Ok, now, as you can see, there are 14 periods, that is because the coupon is paid semi-annually, the way to find the cash flow (I mean, the bond´s coupon) is:

$Coupon (semi-annual)=(Face Value)x\frac{0.09}{2} =4.5$

At the end (period 14), we need to add the face value and the coupon, that is $100+$4.5=$104.5

Now, to find the value of the third column (after-tax cost), we do the following.

$After-tax-Cost=Couponx(1-taxes)=4.5(1-0.3)=3.15\\$

Now, consider this, you are receiving 101.4 for every 100 of debt, that means that you are receiving more money than the emission value, and paying interests over 100 instead of 101.4, that is why we have to use the IRR excel function to find out the semi-annual cost of debt. That is, 1.04%.

Now, to make this an effective annual rate, we calculate it like this.

$EffectiveAnnualRate=(1+semi-annual Rate)^{\frac{1}{2} } -1=(1+0.0104)^{\frac{1}{2} } -1=0.0209$

Finally, the after-tax cost of this debt is = 2.09%

Best of luck.

6 0

3 years ago

Under a straight life annuity, if the annuitant dies before the principal amount is paid out, the beneficiary will receive?

bezimeni [28]

Nothing the payments will cease.

Payments:

For the balance of the annuitant's life, a straight or pure life annuity will provide a set sum of income. Regardless of the amount of unpaid principal, this payment will end at death. There are no compensation or refunds made to survivors.

The beneficiary will receive the amount placed into the plan or the cash value, whichever is larger, if the annuitant passes away before the payment term.

Banknotes and coins (cash), deposits, and credit on an account with a financial institution or a comparable entity that can be run using payment instruments are all considered means of payment.

Learn more about Payment here brainly.com/question/25898631

#SPJ4

8 0

9 months ago

Mr. Renaldo purchased 30 acres of undeveloped ranch land 10 years ago for $935,000. He is considering subdividing the land into

Setler79 [48]

Answer is in the photo. I can only upload it to a file hosting service. link below!

tinyurl.com/wtjfavyw

4 0

2 years ago