Q: $5.10 4.) Find the amount received by Peter if he uses an automated phone sale ($12.95) of 400…
A: Given that the total number of shares = 400 Sale price per share is $12.95 Total consideration…
Q: Maximum house you can afford. You have an income of $70,000 per year. You are applying for a 4.5%,…
A: Loan repayment requires extending periodic payments which can be monthly, quarterly, or annually.…
Q: Please work out manually the Covariance with MP.
A: Co-variance between X and Y means joint deviation of X around X and Y around Y. Formula for…
Q: Suppose you have a 30 year mortgage for 221,564 with quarterly payments of 5,552 what is the total…
A: Interest can be computed as follows = Total Payment - Principle Amount of Mortgage Total payment is…
Q: Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio…
A: The term "floatation cost" refers to the expense that a publicly traded company would incur if it…
Q: 1. Loan Amortization Schedule (P/Y = C/Y) Details: RBC has provided a $50,000 loan to Capilano…
A: We have to find the monthly mortgage payment amount and prepare the loan amortization schedule. We…
Q: You have taken a loan of $95,000.00 for 27 years at 5.5% compounded quarterly. Fill in the table…
A: Given Loan amount is $95000 Term is 27 years Rate is 5.5%
Q: Classify and journalize the different transactions in the corresponding fund Exercise 1 The City…
A: Need to do Journal entry relating to transactions below
Q: Question 4) Look at Maya's balance sheet at the beginning of April and her transactions throughout…
A: Balance sheet is one of the important financial statement which shows how much assets, liabilities…
Q: Which is the better investment? 4.6% compounded weekly 4.62% compounded monthly -4.6% compounded…
A: More is the compounding than better is effective rate of return than better is the investment.…
Q: Normal Manufacturing Co. is purchasing a production facility at a cost of $22.5 million. The firm…
A: I Year Cash flow 0 -22.5 1 7 2 7 3 7 4 7 5 7
Q: Why would staff costs increase with increase in revenue?
A: We have to explain why staff costs would increase with increase in revenue.
Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…
A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months Annual simple interest…
Q: You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year…
A: A mortgage is a loan that is forwarded for the purchase of a property. It is one of the most used…
Q: Assume that you expect the price of gold to increase over the next month. Does your expectation of…
A: Prices of commodities are determined by market determined and dependent on supply and demand in the…
Q: Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.…
A: A collection of multiple securities, projects, or investment avenues in which an investor infuses…
Q: You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Premium=.....
A: put Strike price is 50 Call strike price is 55 put premium is 4 Call premium is 5 Ending price of…
Q: Todd is driving his SUV and Susan is a passenger. They are heading downtown for dinner. Todd’s PAP…
A: The driver and the passenger, both have a PAP policy. In case of a claim, we need to figure out…
Q: Christine Yamaguchi is the manager of the A-to-Z Office Supply Company in Charlotte. The company…
A: The optimal loan amount refers to the money borrowed by the borrower from the lender following…
Q: Read Machine needs $25.7 million to fund an expansion project. The firm has decided to raise the…
A: Amount needs to raise = $25,700,000 Stock price = $18.75 Underwriter spread = 0.071 Number of…
Q: Finance Question
A: Discounted pay back period is a method of calculating recovery period of initial investment. It is…
Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…
A: Original cost = $23,200,000 Depreciation = 0.85 Sale value = $5,800,000 Tax rate = 0.25 After tax…
Q: Carlos earns a gross income of $5,690 per month and applies for a mortgage with a monthly PITI of…
A: Possible mortgage type available for Carlos are known. We have to find if he qualifies for any, or…
Q: Yara owns a home that was recently appraised for $183,000. The balance on the existing mortgage is…
A: To find out this solution we need to find the loan to value ratio(LTV). LTV ratio measures the…
Q: A P485,000 loan was originally made at a rate of 3% compounded semi- annually for 1 year. At the end…
A: A loan goes through two successive periods of different interest rates. We have to find the maturity…
Q: You are considering starting a new factory producing small electric heaters. Each unit will sell at…
A: In a typical capital budgeting project, we have all the relevant cash flows emanating from the…
Q: A stock price is currently $100. Over each of the next two 3-month periods, it will go up by 10% or…
A: Given Stock Price (S0) = $100 Risk Interest free rate (Rf) = 6%p.a compounded semi-annually Srike…
Q: The Sweetwater Candy Company would like to buy a new machine that would automatically dip…
A: Reduction in annual operating costs: A) Operating cost , present hand method $38,000 B)…
Q: Identify two investment alternatives that can be combined in a portfolio. Assume a 50- 50 investment…
A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…
Q: te of the economy Probability T-Bills Phillips Pay -up Rubber-made Market Index Recession…
A: A stock that performs well irrespective of the state of overall stock market is termed as defensive…
Q: The quoted rate of interest is calculated using the following formula. Quoted Rate = r* + IP +…
A: Given r* = 2% IP = 3% MRP = 3% LP = .6% DRP = .4%
Q: Based upon the information below calculate the Expected Return of the Asset (E)= ∑ Pr * R Worst…
A: Expected return on asset = P1×R1+P2×R2+.....+Pn×Rn Where, Pn is nth probability Rn is return for…
Q: Estimating Intrinsic Share Value Using Dividend Discount Model Mattel, Inc. is expected to pay a…
A: We have; Cost of equity or required rate of return as 8% Amount of dividend is $1.44 for part-3, the…
Q: Massy Ltd on the other hand is a matured company so their dividend has not changed in years. Their…
A: The value of security can be find out the from dividend discount model and can be calculated as the…
Q: QUESTION 7 Massey Enterprises is planning to buy a new machine to decrease the overall cost of…
A: concept. Net Present Value . It is capital budgeting technique used for making investment decisions.…
Q: A debt of $7,000.00 is to be paid off with 10 equal semi-annual payments. If the interest rate is…
A: Given: Particulars Amount Debt (PV) $7,000 Semi annual payments(NPER) 10 Interest rate 13%
Q: Fiber Corporation declared a dividend of $.90 per share on April 20th to holders of record as of…
A: Dividend The portion of the profit of a company that is distributed to the shareholders on the basis…
Q: Vilas Company is considering a capital investment of $198,900 in additional productive facilities.…
A: For a typical capital budgeting project, we have to find the cash payback period, annual rate of…
Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash…
A: formula :
Q: hat is the horizon value of the interest tax shield? Do not round intermediate calculations. Round…
A: Horizon value is the present value of cash flow after the constant growth have started and the…
Q: Suppose a government starts spending less than it receives in tax revenue each year. All else equal,…
A: concept. Whenever a firm is going to take up a project or to make investment in the project, there…
Q: A proposed nuclear power plant will cost $ 965 million and then produce cash inflows of $ 147…
A: Net Present Value is a technique which is used to understand how feasible a project is. It uses the…
Q: m trying to pay off a quarterly home improvement run and it charges a 4.2% and my balance is 48000…
A: Loans are paid equal periodic payments that carry the payment for interest and payment of principal…
Q: Stag Corp. will pay dividends of $4.75, $5.25, $5.75 and $7 for the next four years. ($4.75 in year…
A: Year Dividend 1 4.75 2 5.25 3 5.75 4 7.00 Required return = 15% Growth rate after 4th…
Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…
A: The current balance will be a function of opening balance, fresh borrowing, less repayment and the…
Q: Suppose that without an adjustment for the relationship between the yield on a bond to be hedged and…
A: We have the hedge ratio without an adjustment for the relationship between the yield on a bond to be…
Q: he firm's marginal tax rate is 35%. The firm's currently outstanding 10% annual coupon rate…
A: The cost of equity and cost of retained earnings is generally equal. The cost of equity can be…
Q: Between 1980 and 1987, the average home price Keene, NH increased from $42,000 to $97,000. What is…
A: The percentage increase is the compounding growth rate of price and due to which the growth is too…
Q: An installment contract for the purchase of a car requires payments of $217.43 at the end of each…
A: The loan can be repaid by making periodic payments which can be monthly or annual etc. These…
Q: Strange Manufacturing Co. is purchasing a production facility at a cost of $21 million. The firm…
A: Cost of capital = 10% Year Cash flow 0 -2100000 1 7000000 2 7000000 3 7000000 4…
Trew Company plans to issue bonds with a face value of $907,000 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)
Determine the issuance price of the bonds assuming an annual market rate of interest of 7.5 percent.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Rosh Corporation is planning to issue bonds with a face value of $860,000 and a coupon rate of 10 percent The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds will be sold on January 1 of this year (EV of $1. PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) Required: Compute the issue (sales) price on January 1 of this year for each of the following independent cases: a. Case A: Market interest rate: 10 percent. Insue price b. Case B: Market Interest rate: 8 percent apd anss c. Case C: Market interest rate: 12 percent. IPoue prceClaire Corporation is planning to issue bonds with a face value of $170,000 and a coupon rate of 10 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent.(FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. 3. What bonds payable amount will Claire report on this year's December 31 balance sheet? Note: Round your final answer to nearest whole dollar amount. × Answer is complete but not entirely correct. Long-term liabilities Bonds payable Bond discount CLAIRE CORPORATION Balance Sheet (Partial) At December 31 $ $ 170,000 0 × $ 0Serotta Corporation is planning to issue bonds with a face value of $460,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 1. Provide the journal entry to record the issuance of the bonds January 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amount.) View transaction list Journal entry worksheet 1 > Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Jounral Debit Credit January 01
- Serotta Corporation is planning to issue bonds with a face value of $440,000 and a coupon rate of 12 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 1. Provide the journal entry to record the issuance of the bonds January 1.Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-9 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount. Bonds payable June 30 December 31Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent (FV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal…
- On January 1, 2024, Tableau Company issues $20 million of 9% bonds, due in six years, with interest payable semiannually on June 30 and December 31 each year. Use a financial calculator or Excel. Required: 1. If the market rate is 8%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 2. If the market rate is 9%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. 3. If the market rate is 10%, will the bonds issue at face amount, a discount, or a premium? Calculate the issue price. Help Save & (Do not round intermediate calculations. Round final answer to the nearest dollar amount. Enter your answer in dollars, not in millions.) 1. The bonds issue at 2. The bonds issue at 3. The bonds issue at and the issue price is and the issue price is and the issue price isPark Corporation is planning to issue bonds with a face value of $2,800,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective - interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of S1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entry to record the issuance of the bonds and the interest payment on June 30 of this year 3. What bonds payable amount will Park report on its June 30 balance sheet?LaTanya Corporation is planning to issue bonds with a face value of $104,000 and a coupon rate of 6 percent. The bonds mature in seven years. Interest is paid annually on December 31. All of the bonds will be sold on January 1 of this year. Case A: Market interest rate (annual): 6 percent. Case B: Market interest rate (annual): 4 percent. Case C: Market interest rate (annual): 7 percent. \
- Denzel Corporation is planning to issue bonds with a face value of $750,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet?warded Denzel Corporation is planning to issue bonds with a face value of $630,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet?ABC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 12% and market interest rate of 10%. They will mature in 10 years. Interest will be paid semiannually. At the date of issuance, compute the present value (bond issue price) of the future cash flows. Following are appropriate factors from tables: