Although most corporate bonds in the United States have semiannual coupon payments, bonds issued overseas sometimes have annual coupon payments. Assume the German firm issues a bond with a par value of €1,000, a maturity date of 20 years, and an annual coupon rate of 7.4 percent. The current price of the bond is 895.90.
What is the current price means?The most recent price at which a security was sold on an exchange is the current price. Buyers and sellers use the current price as a starting point. Although the present price is indicative of the current value, the actual price of the next sale may be greater or lower based on supply and demand.
Current Price = PMT×(1-(1+i)∧n)/i+ M/(1+I)∧n
Current Price = 895.90
Coupon Payment = 1000× 7.4%
Coupon Payment = 74
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diversion programs generally select already-sentenced probations and parolees and subject them to closer supervision in the community rather than regular probation and parole.
Diversion programs generally select already-sentenced probations and parolees and subject them to closer supervision in the community rather than regular probation and parole violation of supervision management strategies.
Strategic management strategies assist businesses to locate course and develop through a manner of evaluation, evaluation and then improvement that can assist to become aware of new enterprise dreams, set suitable and achievable targets, and help organizations to regain a aggressive aspect.
Examples of the useful strategy encompass product approach, marketing strategy, human aid approach, and monetary method. The purposeful method is concerned with developing a special competence to provide a enterprise unit with a competitive gain.
Strategic management is the ongoing making plans, monitoring, analysis and evaluation of all requirements an corporation needs to satisfy its goals and targets. modifications in business environments would require organizations to constantly check their techniques for fulfillment.
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Batching economies or cycle stocks usually arise from three sources. Which of these is not a source?
a. procurement b. transportation
c. production
d. demand
Procurement s not a source. Economic batch size (economic order quantity) is a supply chain inventory management method. It assumes a fixed quantity of each product order.
The amount of which is determined by the price, the characteristics of Procurement, the cost of inventory maintenance, and the cost of re-ordering. There are two methods for batching: volume batching and weight batching. To obtain a high-quality concrete mix, Economic batching is required. Raw materials (any supplies used to produce finished goods), work-in-progress (WIP), and finished goods (those ready for sale) are the three general categories of inventory. In this article, we'll look at the three most common inventory management strategies.
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By law, how often must each of the three credit bureaus provide you with a free credit report?.
Under FACTA, consumers are entitled to one free credit report every 12 months from each of the three credit bureaus (Equifax, TransUnion, and Experian). Reviewing these reports allows you to correct any errors in your credit history and protect your credit identity.
The FACTA acronym means what?The FACTA (Fair and Accurate Credit Transactions Act) was added to the FCRA (Fair Credit Reporting Act) in order to primarily protect customers against identity theft. The Act establishes standards for the confidentiality, integrity, and destruction of information as well as placing restrictions on the sharing of consumer data.
FACTA disclosure definition?One free credit report per person per year is made available under FACTA. From Equifax, TransUnion, and Experian, they can request credit reports. Furthermore, it mandates that mortgage lenders reveal the data on consumer credit scores that they have used to set mortgage loan terms or rejections.
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margaux is reviewing the corporate policy that stipulates the processes to be followed for implementing system changes. which policy is she reviewing?
Change control policy is being reviewed by Margaux.
The procedures and processes through which technology change is planned, approved, and implemented are governed by "change control" policy.
The objectives are to accept necessary change, prevent unnecessary change, and make sure all accepted change is implemented with the least possible impact on continuing operations. Keep reading to find out how to complete this substantial task.
Whether it has to do with system administration, hardware configuration, software upgrades, or other maintenance responsibilities, technology change is unavoidable.
IT change control is used to accommodate evolving business and technological needs and is a standardized IT management strategy that aims to maintain overall stability, security, and reliability.
Technology change can be disruptive as well as advantageous. Effective change management procedures must be created to maximize benefits and minimize difficulties.
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home security systems is analyzing the purchase of manufacturing equipment that will cost $90,000. the annual cash inflows for the next three years will be:
The rate of return that the project generates is referred to as the IRR, or internal rate of return.Equations are used to calculate the NPV to zero.Projects with an IRR greater than the cost of capital should be accepted, according to the IRR decision rule.
The NPV, or Net Present Value, is null at IRR.
Therefore, to obtain the IRR, let us determine the NPV at various rates of return.
A metric used in financial analysis to estimate the profitability of potential investments is the internal rate of return (IRR).In a discounted cash flow analysis, the IRR is a discount rate that sets the net present value (NPV) of all cash flows at zero.The NPV and IRR calculations use the same formula.
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base electronics collects $1,400 in sales tax this month. to pay the sales tax, the journal entry would be:
Base electronics collects $1,400 in sales tax this month.On July 15, 2021, sales of $77,000 ($551400) are recorded, with a credit to the sales account and a debit to the account receivables.
Cash was collected on July 23, 2021, which suggests that the payment was made during the discount period. As a result, the amount received is equal to the selling price less the 2% discount, and the cash collected is therefore $75460 ($77000*98%).The act of keeping or creating records of any transaction, whether one that is economic or not, is known as Journalising Transactions are recorded in an accounting journal, which displays a company's debit and credit balances. Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.Without taking any deductions for costs or applying any reductions to the sale value, the transaction is documented using the gross method.
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xanthippe has some money in his wallet, but he also has a checking account. this money can best be defined as
Xanthippe has some money in his wallet, but he also has a checking account. this money can best be defined as M1.
What Is M1?The money supply, or M1, is made up of cash, demand deposits, and other liquid deposits, such as savings accounts. Because it encompasses assets and currencies that are either already cash or can be swiftly transformed into it, M1 includes the most liquid parts of the money supply. The M2 and M3 categories, which include "near money" and "near, near money," cannot be converted to currency as rapidly.
M1 money, which is utilized as a medium of trade, is a nation's fundamental money supply. Demand deposits and checking accounts, the most widely used exchange mediums through the usage of debit cards and ATMs, are included in M1. The M1 definition is the most restrictive of all the elements of the money supply. Financial assets like bonds are excluded from M1. The money supply metric economists use the most to measure the amount of money in circulation in a nation is M1 money.
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Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts. The S&P 500 index is currently 1,602. The option delta is.53. How many option contracts must Lynn write to effectively hedge her portfolio?
Lynn has an equity portfolio valued at $15 million that has a beta of 1.30. She has decided to hedge this portfolio using SPX call option contracts.
The term “portfolio” refers to any mixture of monetary belongings including shares, bonds and cash. Portfolios may be held through character buyers or managed by way of monetary specialists, hedge finances, banks and different monetary institutions. it is a normally conventional principle that a portfolio is designed in step with the investor's hazard tolerance, time body and investment goals. The economic cost of every asset can also affect the risk/praise ratio of the portfolio. when figuring out asset allocation, the intention is to maximize the expected return and minimise the threat.
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part i during the current year, a donor gives $400,000 cash to the school and stipulates that the money must be held forever. any investment income earned on this money must be used to supplement faculty salaries. by the end of the current year, $31,000 has been earned and, of that amount, the school has expended $22,000 appropriately. at the end of the current year, the board of trustees also set aside $150,000 in unrestricted cash that must be held with income going to faculty salaries. what was the overall change in each of the following for the year?
a. Net assets without donor restrictions b. Net assets with donor restrictions
There is no net change in the presented problem's unrestricted net assets since the interest has been correctly used.
As of right now, 000 has been categorized as unrestricted net assets, and salary expenditure serves as an additional offset.
The investment, which is now worth $31,000, has been downgraded to $ 22,000 and classed as an unrestricted asset for the purpose of paying salaries since there is a restriction on the amount that may be used to pay salaries.
The $400,000 listed as a contribution to the school will be considered permanently restricted property. When money is kept for a longer length of time, it might be considered an investment and utilized to pay faculty salaries.
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a normal good is: a good for which higher income causes an increase in demand. a good which is normally purchased by many consumers. a good for which higher income causes a decrease in demand. a good which is only purchased by high-income consumers.
A normal good is a good for which higher income causes an increase in demand. (first option)
What is a normal good?Normal goods are goods that have a positive relationship with the income of a consumer. Normal goods are goods whose demand increases when income increases and falls when income falls.
Inferior goods are goods whose demand falls when income rises and increases when income falls. Inferior goods have an inverse relationship with income of the consumer.
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A normal good is: a good for which higher income causes an increase in demand.
What Is a Normal Good?A normal good can be decribed as those good that experiences an increase in its demand due to a rise in consumers' income.
It should be noted that any increase that can be attributed to the wages, then will bring the demand for normal goods to increases while however the wage declines or layoffs lead to a reduction in demand, hence normal good serves as good for which higher income causes an increase in demand.
Therefore, option A is correct.
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carlos, an hr manager, conducts a survey to learn which benefits employees value the most. however, he finds that the survey results are difficult to apply. what is the most likely reason? group of answer choices employees have very different opinions about what they value. employees expect to receive benefits that are legally required and widely available. the employees only value medical insurance. the costs of turnover at vince’s company are high. software is the only method employees will accept to help them choose their benefits.
In a case whereby carlos, an hr manager, conducts a survey to learn which benefits employees value the most. however, he finds that the survey results are difficult to apply hes most likely reason is that employees have very different opinions about what they value.
What is the Employee benefits?Employee benefits can be described as the forms of perks or compensation which are been provided to employees in addition to their base salaries and wages.
It should be noted that the complete employee benefits package may encompass the health insurance plan, life insurance, howeve from the case above employees have very different opinions with benefits.
Therefore, the first option is correct.
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how does it make you feel that all of the chemicals listed by the businessman at the meeting get pumped into groundwater supplies?
Typically, they fall between 12 and 25 percent. It is important to carefully carry out due diligence to confirm ownership before negotiating royalty payments for privately owned land.
What are groundwater supplies?
Human activity almost invariably results in groundwater contamination. Groundwater is particularly at risk in locations with a high population density and extensive human usage of the land. Virtually any action whereby chemicals or wastes may be discharged to the environment, either purposefully or accidentally, has \sthe potential to harm ground water. Cleaning up contaminated groundwater is challenging and expensive. Through rock cracks, pollutants and groundwater can migrate quickly. Because the fissures in fractured rock are typically randomly distributed and do not follow the contours of the land surface or the hydraulic gradient, this offers a special challenge in locating and controlling contaminants.
Additionally, contaminants may enter the groundwater system through macropores such as root networks, animal burrows,abandoned wells and other networks of contaminant-supplying fractures and holes. Ground water may be contaminated by a variety of microbes and thousands of manmade compounds. Hepatitis, cholera, and giardiasis can all be contracted by drinking water that contains germs and viruses.
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brenda's company recently lowered the cost of their footwear line and suddenly the demand for products increased dramatically. in this situation, demand would be considere
Brenda's company recently lowered the cost of their footwear line and suddenly the demand for products increased dramatically. in this situation, Demand would be considered high due to the customer's needs.
What is the Demand?The quantity of a good that buyers are willing and able to buy at different prices during a specific time is known as demand in economics. The demand curve is another name for the relationship between price and the amount of demand.
Demand is the user's intention to buy a specific product or service. The desire for a specific good on the market is known as market demand. The overall demand for products and services there in the economy is known as aggregate demand. The price of an item or service is determined by how well supply and demand match. recognizing the idea of demand.
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the alternative minimum tax has become an added tax burden on many upper-middle - class families because:
As it is not inflation-indexed, the alternative minimum tax has increased taxes for many upper-middle class families.
What is Inflation indexing?Indexation, a method of adjusting income distributions, is used to maintain the public's purchasing power after inflation. The reverse of indexation is called deindexation.
Some taxpayers are required to determine their tax burden twice—once under ordinary income tax laws and once under the Alternative Minimum Tax (AMT)—and pay the amount that is higher. In comparison to the standard system, the AMT has fewer preferences and various exclusions and rates.
The most well-known indicator of inflation is the Consumer Price Index (CPI), which determines the percentage change in the price of a variety of goods and services that families regularly use.
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hardware is adding a new product line that will require an investment of . managers estimate that this investment will have a 10-year life and generate net cash inflows of the first year, the second year, and each year thereafter for eight years. assume the project has no residual value. compute the arr for the investment
If West Hill Hardware is adding a new product line that will require an investment of $1,500,000. the payback period is: 5.56 years.
How to find the payback period?Amount after 5 years =$1,360,000
Total amount left= $1,500,000 - $1,360,000
Total amount left = $140,000
Now let find the payback period
Payback period = 5 years + (140,000 /250,000)
Payback period = 5 years + 0.56
Payback period = 5.56 years
Therefore the payback period is 5.56 years.
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The complete question is:
West Hill Hardware is adding a new product line that will require an investment of $1,500,000.
Managers estimate that this investment will have a 10-year life and generate net cash inflows of $310,000 the first year, $300,000 the second year, and $250,000 each year thereafter for eight years.
The investment has no residual value.
Compute the payback period.
what explanation might an economist provide why some people when such behavior can lead to health consequences?
Economist say they overvalue the utility from current choices.
Instead, behavioral economics uses both psychology and economics to investigate why people occasionally make illogical choices and why and how their behavior deviates from what economic models predict. Most people make decisions at some point in their lives on things like how much to pay for a cup of coffee, whether to go graduate school, whether to follow a healthy lifestyle, how much to put toward retirement, etc. The goal of behavioral economics is to clarify why a person chose option A rather than option B.
The given question is incomplete, the complete question is :
What explanation might an economist provide why some people smoke cigarettes when such behavior can lead to health consequences?
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Before you confirm the backpack shape selection, let's make sure you're reading the backpack shape information properly. Which of the four shapes has the highest PRODUCTION COST?
Teardrop Rucksack
Rounded Top
Square
Large Rectangular
Teardrop Rucksack has the highest production cost.
Production fees refer to all of the direct and oblique fees businesses face from production a product or offering a carrier. Manufacturing expenses can consist of a selection of costs, including exertions, raw substances, consumable manufacturing materials, and general overhead.
It includes 3 most important costs: uncooked substances, direct labor, and overhead. Those charges can be fixed (maximum overhead) or variable (uncooked substances and hard work). The whole product value formula is general Product price = fee of raw substances + price of Direct exertions + price of Overhead.
Blanketed inside the production fee are (1) the fee of uncooked materials, (2) the fee of direct labor, and (3) the cost of overhead. Raw substances and hard work costs are frequently variable, even as the overhead expenses are in the main fixed.
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find the future value of an annuity due of $9,000 paid at the beginning of each 6-month period for 9 years if the interest rate is 4%, compounded semiannually. (round your answer to the nearest cent.)
$240,041.06 is the future value of an annuity due of $9,000 paid at the beginning of each 6-month period for 9 years if the interest rate is 4%, compounded semi-annually.
How to calculate future value of an annuity?
The current value of the annuity payable can be multiplied by (1 + r) n in the first alternative, where FV = PV (1 + r) n. The calculation is (1 + r) * P 1 - (1 + r) - n / r to determine the current value of the annuity payable. The second approach involves comparing the cash flows of an annuity due and a regular annuity.
A series of payments paid at regular intervals is known as an annuity. Regular savings account deposits, mortgage payments, insurance premiums, and pension payments are all examples of annuities.
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question 10 as a project manager, you’re prioritizing stakeholders using a power grid. one stakeholder has high power and high interest. what level of engagement should the team have with the stakeholder
The level of management that the team should have with the project manager is c) manage closely.
Such stakeholders who are having high power should be managed closely as they can benefit the project in more than one way. When a business form is such that it prioritizes the stakeholders, then in such circumstances the project managers have the responsibility to deal closely with the stakeholder that has high power and high interest.
A stakeholder will be responsible for buying out many parts of the business or will make a valuable investment in it. Such a stakeholder that has high power should be managed closely.
Although a part of your question is missing, you might be referring to this question:
As a project manager, you’re prioritizing stakeholders using a power grid. one stakeholder has high power and high interest. what level of engagement should the team have with the stakeholder
a) show consideration
b) monitor
c) manage closely
d) meet the needs
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a contractionary fiscal policy is shown as a: group of answer choices rightward shift in the economy's aggregate supply curve. movement along an existing aggregate demand curve. rightward shift in the economy's aggregate demand curve. leftward shift in the economy's aggregate demand curve.
Contractionary fiscal policy occurs when the government cuts spending or increases taxes. It got its name from the way it deflates the economy. It reduces the amount of money available to businesses and consumers. This means government programs such as forest services, health services and the military receive fewer resources.
Contractionary fiscal policy is used to slow economic growth, for example when inflation rises too quickly. Constriction fiscal policy, the opposite of expansionary fiscal policy, raises taxes to reduce spending. When consumers pay more taxes, they spend less money, slowing economic stimulation and growth.
This will restrain economic growth and reduce inflation in the short term. Tightening monetary policy could lead to more unemployment, less borrowing and spending by consumers and businesses, and if applied too aggressively could ultimately lead to a recession.
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Which of the following statements is correct?
1.) A firm's weighted cost of capital should decrease if its tax rate increases, but the yield to maturity of its noncallable bonds remains the same and all other factors are held constant.
2.) The market value of a firm's debt and equity will continuously change throughout the day, but the book value of debt and equity tends to stay more stable over time. Consequently, the firm should use the book-value weight to define its optimal capital structure.
3.) A firm's after-tax cost of preferred stock may be significantly less than its before-tax cost, because issuing preferred stock dividends creates a tax shelter.
1.) A firm's weighted cost of capital should decrease if its tax rate increases, but the yield to maturity of its noncallable bonds remains the same and all other factors are held constant.
If a company's tax rate goes up, but all other variables stay the same and the yield to maturity of its noncallable bonds doesn't change, then its weighted cost of capital should go down. The right response in this case is option A.
The weighted average cost of capital (WACC) is the average rate an organization pays to finance its assets (WACC). It is determined by averaging the rates of all the company's capital sources and weighting the results according to the relative importance of each component.
They also overwhelmingly suggest that tax hikes can enhance government revenue, but frequently at the price of citizens' economic mobility and progress.
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Which of these measures would an economist use to compare gdp from various time periods, and why?.
Since GDP is expressed in a country's currency, we must convert it to a common currency in order to compare the GDPs of several nations.
Briefing:-The price of one currency relative to another is known as the exchange rate, and it can be used to compare the GDPs of various nations. GDP is calculated by dividing it by the population.
Which sort of GDP is ideal to compare and measure across nations?A useful metric for comparing a nation's economic production relative to its citizens is GDP per capita. It divides the economic output of a nation by its population. Any country can be compared to another using GDP per capita.
Which GDP measure—nominal or real—is preferable for comparing GDP over time and why?Because it takes inflation into account, real GDP is frequently preferred over nominal GDP. As a result, if the nominal GDP increased by 4% in a given year but the inflation rate was 5%, the GDP actually decreased by 1% in real terms (constant-dollar terms).
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If you were to invest $100,000 at a guaranteed fixed rate of 6% apr, compounded monthly, how much would your investment be worth at the end of 10 years?
If you were to invest $100,000 at a fixed rate of 6% APR, compounded monthly, at the end of ten years, the investment would be worth $105114.013.
Compound interest is how I acquire it.Compound interest is the term used to describe interest that is earned on interest. This may be shown using simple math: if you have $100 and it earns 5% interest every year, you will have $105 at the end of the first year. At the end of the second year, you'll have $110.25.
After multiplying the initial principle by these two factors, the yearly interest rate is raised to the number of compound periods minus one. The resulting value is then deducted from the total initial loan amount.
Amount= P X [tex](1 + r)^{n}[/tex]
Where,
P= $100,000
r= 6/12% = 1/200
n= 10 years
Putting values in the formula
Amount= $100,000 X [tex](1 + \frac{1}{200} )^{10}[/tex]
A = $1,00,000 X [tex](1 + \frac{201}{200} )^{10}[/tex]
A = $105114.013
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walnut company has sales of $1,000,000 and total expenses of $900,000. if operating assets are $500,000, the return on investment is:
If Walnut company has sales of $1,000,000 and total expenses of $900,000. if operating assets are $500,000, the return on investment is 100,000$.
Investment? Why do you say that?An investment is something that is purchased with the goal of earning money or gaining fame. An investment in the future of the economy refers to the acquisition of goods that will not be used right away but instead be used to generate wealth in the future.
What kind of investment would this be?Any strategy that generates prospective future income can be referred to as an investment. Purchasing securities like bonds, stocks, or real estate is one example of this. You can purchase a property that can be used to produce goods and think of it as an investment.
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Which of the following statements is false regarding multiple acquisitions of a subsidiary's existing common stock?
A) The parent recognizes a larger percent of subsidiary income.
B) A step acquisition resulting in control may result in a parent recognizing a gain on revaluation.
C) The book value of the subsidiary will increase.
D) The parent's percent ownership in subsidiary will increase.
E) Noncontrolling interest in subsidiary's net income will decrease.
Any company's book value does not rise as a result of acquisitions. Only the company's operations can change book value. Fair value is impacted by acquisitions and mergers.
Hence, option (c) is false.
A company's book value is the net difference between its total assets and total liabilities, where book value reflects the total value of a company's assets that shareholders would receive if the company was liquidated.
They now possess a sizable portion of common stock as a result of numerous acquisitions, and as a result, receive a sizable portion of the subsidiary's income. Hence, option (a) is true.
After one purchase, the fair value of a subsidiary's shares often decreases. The parent will profit from the revaluation if they buy the remaining shares for less. Hence, option (b) is true.
More shares are obtained as a result of multiple acquisitions, increasing the percentage of ownership. Hence, option (d) is true.
Because the parent owns the majority of the shares, they have even fewer stakes in the subsidiary, and income is distributed proportionally to the stock held. Hence, option (e) is true.
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when a seller offers lower prices to those buyers who are willing to overcome some obstacle to get it, the seller is using to get buyers to reveal their . segment blocking; marginal benefit the hurdle method; marginal cost the hurdle method; reservation price impediment pricing; marginal benefit
When a seller offers lower prices to those buyers who are willing to overcome some obstacle to get it, the seller is using to get buyers to reveal their hurdle method and reservation price.
Professor of Economics Robert Frank is credited for developing the hurdle model. By using a hurdle system, purchasers with low minimum purchase prices are separated from those with higher so-called reserve prices. The consumer must be willing to overcome or leap over some sort of obstacle that poses an inconvenience in order to benefit from a cheaper price.
A reserve price, also known as a reservation price, is the lowest bid amount that a seller will accept as a successful bid in an auction. It is also occasionally referred to as the highest price a buyer will pay for a good or service.
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raine owns 1,600 shares of lp gas stock which she purchased six years ago at a price of $18 per share. today, these shares are selling for $26 each. assume a tax rate of 20 percent applies to both dividend income and capital gains received by individuals. ignore costs. given this hypothetical assumption, from raine’s point of view a stock repurchase today would: multiple choice be equivalent to a cash dividend. be more desirable than a cash dividend in respect to taxes. result in the same tax liability as an equivalent cash dividend. be more highly taxed than a cash dividend. be totally unacceptable to her.
From the following condition, the hypothetical assumption, from Raine’s point of view a stock repurchase today would be more desirable than a cash dividend in respect to taxes. The correct option is (B).
What do you mean by the stock repurchase?A firm may repurchase its own shares from the market in a process known as a share repurchase. Because management believes the shares are undervalued, a corporation might repurchase its shares.
A company's stock price rises following a stock repurchase. This is true since there are now fewer shares available, which raises the price. Along with this, there may be stable or rising demand for the shares, which pushes the price higher.
Each share of stock represents a portion of a corporation, therefore as more shareholders remain, their ownership percentage of the company grows.
Therefore, from the following condition, the hypothetical assumption, from Raine’s point of view a stock repurchase today would be more desirable than a cash dividend in respect to taxes.
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an employer offers his or her employee the option of shifting x units of income from next year to this year. that is, the option is to reduce income next year by x units and increase income this year by x units. (a) would the employee
Consumers would, in fact, choose to transfer their revenue from the following year to the present. This is because, as a result of discounting, cash on hand right now is more valuable than cash accessible tomorrow. The consumer is also a net borrower, which means that he is already consuming more than his current consumption, and additional income this year will enable him to pay off some of his debt.
Financial assets and liabilities, including loans, shares, investment funds, and pension funds, are displayed in the Financial Account. The net lending or net borrowing is the difference between the entire rise in assets and the total increase in liabilities, which represents the overall change in the account.
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smiley corporation wholesales repair products to equipment manufacturers. on april 1, 20y1, smiley issued $1,200,000 of 7-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $1,326,757. interest is payable semiannually on april 1 and october 1. question content area a. journalize the entry to record the issuance of bonds on april 1, 20y1. if an amount box does not require an entry, leave it blank.
On April 1, 20y1, Smiley issued 7-year $1,200,000, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $1,326,757. Interest is payable semiannually on April 1 and October 1 for $175,000.
A journal is a book where all of a business's transactions are initially documented. The act of journalizing involves adding transactions to the journal. Each transaction has two effects on the accounts: one debit and one credit.
Journal entries:
Date particulars Debit Credit
1-Apr Cash $5,717,668
Premium on bonds payable $717,668
Bonds payable $5,000,000
(being bonds issued)
1-Oct Premium on bonds payable $39,870
($717,668/18 months)
Interest expense $135,130
Cash ($5,000,000 × 7%)/2 $175,000
Working:
Bond = 9 year
Interest payments = yearly 2
So, the premium on bonds amortized over (9 × 2) = 18 months
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what are some financing options for developers who do not have permanent financing committed before construction begins?
The developer might use his personal money or the money of his company to supply the necessary equity. Some funding options for developers include a combination of these three approaches.
What do you mean by financing?Finance is the process of creating funds or cash for any kind of spending. It involves allocating various financial resources, including as credit, loans, and cost of equity, to the areas of the economy that may benefit from them most.
Why is financing so important?Financing is essential to strengthening company finances since it allows companies to take chances and grow. Businesses used to be able to operate as they wished without receiving any financial help.
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