Answer:
June 30, 2020 Bond Interest expense Debit $5,756.25
Discount on Bonds payable Credit $506.25
Cash Credit $5,250
Explanation:
We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount
Given,
Bond price = $150,000
Interest = 7%
Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20
Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)
Cash payment for semiannual interest = $5,250 (Credit)
Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)
Discount on bonds payable = $506.25 (Credit)
Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)
Answer:
An employment agency
Explanation:
An employment agency is a firm whose primary purpose is to connect employers and employees. The agency does not employ people but aims at placing them for employment in other organizations. The agency matches the job opening in organizations and available skills.
In some countries, employment agencies can be government-owned or private businesses. Organizations that employ though agencies will save on time and recruitment costs.
Answer: $22.22
Explanation:
We can use the dividend discount model to solve for this.
The formula is,
P = D1 / r - g
Where,
D1 = the next dividend
r = the expected return
g = the growth rate.
We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,
28.5 = 0.5 / x - 0.075
28.5 (x - 0.075) = 0.5
x = 0.5 / 28.5 + 0.075
x = 0.09254385964
x = 9.25 %
Now that we have the expected return we can calculate the new stock price with the new growth rate,
P = 0.5 / 9.25% - 7%
P = 22.2222222222
P = $22.22
The new stock price is $22.22
Answer:arithmetic average annual return per year= 3.75%
Explanation:
Year 1 = 10%
Year 2= 15%
Year 3 = 15%
Year 4 = -25%
total return = 15%
Arithmetic average annual return per year =(Return of year1 + return of year 2 + return of year 3+ return of year 4 )/4 = 15% /4 = 3.75%
