The bond will pay no interim coupon payments. What is the present value of the bond if the discount rate is 10 percent? 5. A firm has an estimated pension liability of $1.5 million due 27 years from today. If the firm can invest in a risk-free security with an interest rate of eight percent, how much must the firm invest today to be able to make the $1.5 million payment?
Cash-based income: Revenues Received $6,000 Less expenses paid $5,000 = Income $1,000 3. Question 3: Please refer to Q2. What was Brady Brothers accrual basis income? Accrual-based income: Revenues Earned $12,000 Less expenses incurred $8,000 =Income $4,000 4. Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects.
Similar non-convertible bonds are priced to yield 10 percent. The bond matures in 10 years stock in Reliance sells for $ 36 per share. Q1) What are the conversion ratio, conversion price, and conversion premium? Q2) What is the straight bond value? Q3) What is the conversion value?
Part A (50 per cent of the marks) Question 1 Panna wants to buy a new suite of furniture for her flat. The furniture costs £3000 from a furniture store in her local town. The saleswoman suggests that Panna takes out a loan from the store’s finance company to fund the purchase of the furniture. The repayment loan from the finance company would be at a fixed APR of 9 per cent for a repayment term of between one and four years, which Panna can select herself. The loan would take the form of a secured loan.
If I took 25 years to pay off my loan the monthly Payment would be $761.22 per month. If it took 20 years to pay off my loan the monthly Payments would be $849.52 per month. So if I wanted to pay off the loan in 20 years I Would need to raise my total monthly payment by $88.30 per month. I also need to explain whether or not it would be reasonable to do this if I currently meet my monthly expenses with less than $100.00 left over. Yes I would be able to meet my monthly Expenses.
If Casper decided to take out a loan that charges 20% APR over one year for the amount of £2000 over 12 months he would expect to pay £183 per month for 12 months with interest of £205. (candid money calculator accessed 28/7/11) If Casper makes the decision to use his credit card and he borrowed £2000 over 2 years at 15% APR his total monthly payments would be £96.08 per month, the interest would calculate to £306 this would be a total repayment of £2306 over 2 years. (candid money calculator accessed 28/7/11) Comparing the ‘loan’ to the credit card loan, Casper would pay his debt back quicker but at nearly double the price of the credit card loan, the advantage the credit card loan has, his monthly installments will be half of what the ‘loan’ but at 2 years rather than 1 year. Question 2 In question 2 of this essay I shall attempt to answer questions on expenditure and budgeting, giving a brief example from the study of the personal finance course book DB123 and the transcript of the dvd accessed on the Open University website.
Five Components of the COSO Framework The principles supporting the components of internal control are listed below: Control Environment • Integrity and Ethical Values Similar to the Tyco Fraud: half of the expenses for the extravagant Sardinian birthday party of CEO was paid by the company. • Commitment to Competence 1. Internal audit director, Arthur Slugworth only a high school graduate, so he is not competent to perform his duty. 2. The director of human resources, Violet Beauregarde has a music degree, so she is not competent to perform her duty because.
Romney doesn’t have a five-point plan; he has a one-point plan. And that plan is to make sure that folks at the top play by a different set of rules.” Utilizing this device adds inferences on the fact that Romney only had a one point plan. This claim states that Romney only supports the wealthy. A close relation is Epistrophe. Romney used it for one of his claims that night, “When we’re talking about math that doesn’t add up, how about $5 trillion of deficits over the last four years.
The optimists of this country like to say money is not a factor. According to Ariel Freiberg, “It is not what will make our lives secure and it will not help us define ourselves” (Trunk, para 3). Income certainly does not define who a person is and how they live their life. To some people money will not