Builtrite needs to raise $2,000,000 for a plant improvement. It plans to sell $1000 par value bonds with a 10% coupon rate arde a 15 year maturity. Investors require a 9% rate of return. Calculate the market value of the bonds, what is the net price of the bonds if flotation costs are 5% of the market price?

Q: nothing is there

A: Capital deduction rate for Trinidad and Tobago for buildings and improvements, motor vehicles, heavy…

Q: Solution was marked wrong.

A: Future value refers to the concept of time, the value of money used for determining the value of…

Q: how does it became an over applied OH? how will you know that it is under or over applied OH?

A: Lets understand the basics. When applied overhead is more than actual overhead then it is known as…

Q: Why would it

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: Give two examples of errors of principle?

A: Errors of principle refers to errors that are carried out at time of noting down transactions…

Q: 2. Define and describe a conflict of interest.

A: Solution Concept Conflict of interest                 The term conflict of interest means when there…

Q: The Sarbanes-Oxley Act requires the following?

A: Sarbanes-Oxley Act is formulated during 2002 under US federal law. The prime purpose of the act is…

Q: this is wrong. Answer is B

A: A dividend is defined as the part of the profit which is not distributed by the company among the…

Q: nonrecurring

A: Extraordinary things vs. Nonrecurring Items: an summaryExtraordinary things area unit gains or…

Q: Req C is incorrect.

A: Equivalent unit of production is multiplied by cost per equivalent unit to compute the assignment of…

Q: Explain preemptive right

A: Answer: A pre-emptive right is a benefit that can be granted to other owners in a company that gives…

Q: Explanation 1031 like-kind exchange

A:

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: Why option A is incorrect?

A: revenue is generated by the business whenever  goods or services are sold by the business.this leads…

Q: Project b npv is incorrect. MIRR is wrong for A and B.

A:

Q: Use of CAATs?

A: Computer Assisted Audit Techniques or CAATs can be characterized as an auditing strategy that…

Q: Under Tier 2 Mudaraba: The Mudarib contributes only managment. a. TRUE b. FALSE

A: Tier 2 Mudaraba : This is a pre Islamic Arabic type of finance under which one individual provides…

Q: Define the following relative to like-kind exchanges: Boot Postponed gain or loss Gain or loss…

A: The like kind exchange is defined as the transaction of tax deferred which allows for asset disposal…

Q: Question is incomplete.

A: Since you have posted a question with multiple sub-parts we will do the three sub-parts for you. To…

Q: All of these say incorrect.

A: An expense that benefits more than one product and for which the contribution to each product cannot…

Q: Example of someone use a derivative

A: Derivatives: These are the financial instrument, which derives their value from the price and the…

Q: Define uncertainity ?

A: "Uncertainty" in accounting refers to the difficulty of predicting outcomes because of limited or…

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: part b is incorrect. Can you rework it?

A: Here,Quarter Dividend is $1.50Growth Rate is 6.25%Required Return is 9%Quarterly Required Return is…

Q: why would it not be option A

A: The T1 personal tax return is the tax return form required to be filed by all taxpayers in Canada.…

Q: Give two examples of errors of commission?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: Explain the Nonrecourse clause?

A: A sum of money that an individual or company owes is called liability. It is an obligation between…

Q: These are wrong except for net position restricted

A: Net position is the position which has been determined to the government so that the position of the…

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.