• Q : How to prepare xs entry to record the bond purchase....
    Accounting Basics :

    X was interesting in ivesting in bonds and , on 01/01/12 purchased 10% bonds dated january 1, 2012. These bonds had a face amount of $10 million, pay interest on 6/30 and 12/31, and mature in 10 yea

  • Q : Compute the machines payback period....
    Accounting Basics :

    A machine can be purchased for $300,000 and used for 5 years, yielding the following net incomes. In projecting net incomes, double-declining balance depreciation is applied, using a 5-year life and

  • Q : What is the magazine subscriptions....
    Accounting Basics :

    New Wave Co. sold 14,000 annual subscriptions of Game Life for $51 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had t

  • Q : Why the interest is paid semiannually....
    Accounting Basics :

    Nike issued 15-year, 9% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 8.5%. Nike received $216,776 in cash proceeds. Which of the followin

  • Q : Explain amount of interest expense for the first semiannual....
    Accounting Basics :

    A company issued 7%, 4-year bonds with a par value of $200,000. The market rate when the bonds were issued was 7.5%. The company received $190,200 cash for the bonds.

  • Q : Discuss how much would you pay for the annuity....
    Accounting Basics :

    At the end of each month for the next ten years you will receive cash flows of $50. If the discount rate is 7.2%, compounded monthly how much would you pay for the annuity?

  • Q : Discuss the yield to maturity....
    Accounting Basics :

    A bond have a 9.5 percent coupon and pay interest semi-annually. Currently, the bonds are priced at $1,063.15. The company issued this 20-year bond twelve years ago. What is the yield to maturity?

  • Q : Prepare the general journal entries to record the first....
    Accounting Basics :

    On January 1, 2010, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid in 5 annual end-of-year payments of $7,189. The first payment is due on December 31, 2010.

  • Q : Calculate the beta of your portfolio....
    Accounting Basics :

    Calculate the beta of your portfolio, which comprises the following items: (a) Olympic Steel stock, which has a beta of 2.9 and comprises 25 percent of your portfolio.

  • Q : How should your portfolio react to changes in the overall....
    Accounting Basics :

    Company Beta (1) Walmart 0.05 (2) Coca-Cola 0.62 (3) Microsoft 1.36 If the beta of a portfolio of stocks was calculated to be 1.0, how should your portfolio react to changes in the overall market?

  • Q : What is the current value of the stock....
    Accounting Basics :

    Tre-Bien, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years.

  • Q : Compute the dividend for the current year....
    Accounting Basics :

    Tin-Tin Waste Management, Inc., is growing rapidly. Dividends are expected to grow at rates of 30 percent, 35 percent, 25 percent, and 18 percent over the next four years.

  • Q : What does this tell us about the factors....
    Accounting Basics :

    The relation between a stock's value and the dividend that is expected next year if dividends grow at a constant rate forever. If a firm pays all of its earnings as dividends, show how can be rearra

  • Q : What is the beta of this stock....
    Accounting Basics :

    The common stock of Alpha Gamma has an expected return of 12.6 percent. The risk-free rate is 3.5 percent and the expected market return is 12.0 percent.

  • Q : What is the worth of the bond....
    Accounting Basics :

    Rockne, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,136.73 today and your required rate of return was 4.74 percent.

  • Q : What is the current market value of one of these bonds....
    Accounting Basics :

    What is the current market value of one of these bonds? (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answer to 2 decimal places, e.g. 15.25.) Current market value $

  • Q : What is the current value of this bond....
    Accounting Basics :

    Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 7.35 percent.

  • Q : What is the maximum amount pierre should be willing....
    Accounting Basics :

    Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays an annual coupon of 4.69 percent.

  • Q : Why the change in accounts payable is subtracted....
    Accounting Basics :

    Excerpts from Raimo Corporation's comparative balance sheet appear below: ending balance beginning balance Cash and cash equivalents $42,000 30,000 Inventory 411,000 389,000 accounts payable 83,000

  • Q : Which entry is required to record the return transaction....
    Accounting Basics :

    Compass Outfitters sold goods for $300 to a charge customer. The customer returned for credit $120 worth of goods. Which entry is required to record the return transaction?

  • Q : How hershey should account and apply the manufacturing....
    Accounting Basics :

    Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing

  • Q : How many people must attend for the sorority....
    Accounting Basics :

    Suppose the sorority encouraged its members to drive to the hotel and did not charter the buses. Further, a planned menu change will reduce the cost per meal by $2. If each member will still be char

  • Q : Compute the payback period for northwest....
    Accounting Basics :

    Northwest Records is considering the purchase of Seattle Sound, Inc., a small company that promotes and manages "grunge" bands. The terms of the agreement require that Northwest pay the current owne

  • Q : When a company is deciding....
    Accounting Basics :

    When a company is deciding on whether to invest in a project using the Net Present Value method, how should the company choose whether or not to do the project?

  • Q : Which project should the company select....
    Accounting Basics :

    A company uses an 8% discount rate and has a decision to make between four projects. Project 1 has an annual cash inflow of $25,000 for 5 years.Project 2 has a one time cash inflow of $157,000.

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