Present value of a terminal investment

Assignment Help Accounting Basics
Reference no: EM13147113

Calculate the Present Value of a terminal investment that has the following features. show all your work

  • Par Value: 1,000
  • Coupon rate: 6%
  • Yield: 4.5%
  • Maturity: 10 years

Reference no: EM13147113

Questions Cloud

Change in the company net operating income : Estimate the change in the company's net operating income if it were to increase its total sales by $1,800.
Explain pheromones are compounds secreted by the females : Pheromones are compounds secreted by the females of many insect species to attract males. One of these compounds contains 80.78 percent C, 13.56 percent H
Preferred stockholders entitled : What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
Preparation of a consolidated statements : Prepare the elimination entries for the preparation of a consolidated statements workpaper on December 31, 2010 assuming the cost method.
Present value of a terminal investment : Calculate the Present Value of a terminal investment that has the following features. show all your work
Significance of transaction to analyst : Explain the significance of this transaction to an analyst. Explain the consequences of poor quality reporting. What has the U.S. government done to improve the quality of reporting after recent financial scandals, such as Enron?
Consolidated financial statements workpapers : Prepare, in general journal form, the workpaper entries relating to the intercompany sale of equipment that are necessary in the December 31, 2012 consolidated financial statements workpapers.
Dancing in a white disco jacket to music performed : Playing a young working class Brooklyn man, whose life was centered around spending Saturday night at the disco. A memorable scene in the movie has Travolta dancing in a white disco jacket to music performed by the BeeGees.
Determining opportunity cost of purchase of land : A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the opportunity cost of the purchase of the land is:

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the impact on not eliminating intercompany payables

What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation? Is there an instance where either of these two practices wo..

  Keeping a manual accounting system

Your friend, Wendy Geiger, owns a small retail store that sells canies and nuts. Geiger acquires her goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are primarily for cash. Geiger keeps her own ma..

  What is the static budget-flexible budget number of crates

Rica's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pair of shoes are boxed individually, they are crated and shipped in batches. What is the static budget and flexible budget number of crates for 2008?

  Find partnership interest

The land contributed by Stephanie was encumbered by a $250,000 nonrecourse debt. Assume the partners share debt equally. Immediately after the formation, the basis of Stephanie's partnership interest is:?

  Problem related to higher profit margin

a. Which company has the higher profit margin? b. Which company has the higher investment turnover? c. Based solely on the data given, in which firm would you prefer to invest

  Effective interest method

If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31, 2009?

  Shares and other operating improvements

Frantic Fast food had earnings after taxes of $390,000 in the year 2009 with 300,000 shares outstanding. On January 1, 2010, the firm issued 25,000 new shares. Because of the proceeds from these new shares and other operating improvements, earning..

  Statement referring to fixed costs

Which of the following statements is true when referring to fixed costs?

  Issuance of bonds and payment of interest

On March 1, Year 1, a firm issues $475,000 bonds at par value plus accrued interest. The stated rate on the bonds was 12% and the bonds pay interest semi-annually on June 30 and December 31. Prepare the entries necessary to record

  What is the remaining maturity of these bonds

Sure Tea Co. has issued 7.2% annual coupon bonds that are now selling at a yield to maturity of 10% and current yield of 9.9987%. What is the remaining maturity of these bonds? (Do not round intermediate calculations. Round your answer to 2 decima..

  What amount of income gain or loss

What amount of income gain or loss does Sam realize on the formation of the corporation? What amount, if any, does he recognize?

  Specific prices over general price level

Inflation was 8 percent during the most recent year and your organization's investment in land rose 12 percent. If the beginning appraised land value was $1,000,000, what increase in specific prices over general price level would be reported, stat..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd