Answer:
<em>Options Include:</em>
A. $20,000
B. $16,800
C. $18,200
<em>D. $21,800 is Correct</em>
Explanation:
Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.
Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.
<em>Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).</em>
Answer:
14.60%
Explanation:
The computation of market rate of return is shown below:-
Market rate of return = (Dividend × (1 + Growth rate)) ÷ Current price of stock + Growth rate
= ($2.8 × (1 + 3.8%)) ÷ 26.91 + 0.038
= ($2.8 × 1.038) ÷ 26.91 + 0.038
= $2.9064 ÷ 26.91 + 0.038
= 0.108 + 0.038
= 14.60%
So, for computing the market rate of return we simply applied the above formula.
Answer:
$62
Explanation:
Breakeven point is the production level at which the revenue gained is equal to the cost incurred in producing a product.
It is an important consideration because businesses can plan on how to increase profits by producing more above this level.
The formula for break-even is given as
Breakeven= Fixed cost ÷(Price - Variable cost)
To get the price to breakeven, we will take breakeven point as 50 massages per day
50= 1,850 ÷ (Price - 25)
50* (Price - 25)= 1,850
(50* price) - (50* 25)= 1,850
Price = (1,850 + 1,250) ÷ 50
Price= $62
Answer:
Net cash provided by financing activities is $130,000
Explanation:
Increase in bonds Payable = $100000
Issuance of Common stock = $60000
Payment of cash dividends = $30000
Therefore,
Net cash provided by financing activities = Increase in bonds Payable + Issuance of Common stock - Payment of cash dividends
= $100000 +$60000 -$30000
= $130,000
