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klio [65]
2 years ago
5

Enviro Company issues 14.00%, 10-year bonds with a par value of $500,000 and semiannual interest payments. On the issue date, th

e annual market rate for these bonds is 11.00%, which implies a selling price of 129.625. The straight-line method is used to allocate interest expense.
Required:
a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?
b. Whet total amount of bond interest expense will be recognized over the life of these bonds?
Business
1 answer:
ivann1987 [24]2 years ago
7 0

Answer: a. $648,125

b. $551875

Explanation:

a. Using the implied selling price of 129 5/8. what are the issuer's cash proceeds from issuance of these bonds?

Bonds Face Value = $500,000

Cash Proceeds will then be:

= 129.625% × $500,000

= $648,125

b. What total amount of bond interest expense will be recognized over the life of these bonds?

20 payments of $35000 = $700000

Pee value at maturity = $500000

Total repaid = $1200000

Less: Amount borrowed = $648125

Total bond Interest expense = $551875

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Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

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stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

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so intrinsic value of Stock C is 300

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Which of the following is NOT part of a successful quality​ strategy?
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Answer:

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1 year ago
Suppose that coffee growers sell 200 million pounds of coffee beans at $2 per pound in 2015 and 240 million pounds for $3 per po
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During a presentation, a prospect says, "I like the product, but I won't buy
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Explanation:

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