Presented below are three unrelated situations ron stein

Assignment Help Accounting Basics

Reference no: EM13451872

Presented below are three unrelated situations.

(a) Ron Stein Company recently signed a lease for a new office building, for a lease period of 10 years.

Under the lease agreement, a security deposit of $12,000 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 10% per year. What amount will the company receive at the time the lease expires?

(b) Kate Greenway Corporation, having recently issued a $20 million, 15-year bond issue, is committed to make annual sinking fund deposits of $620,000. The deposits are made on the last day of each year and yield a return of 10%. Will the fund at the end of 15 years be sufficient to retire the bonds? If not, what will the deficiency be?

(c) Under the terms of his salary agreement, President Juan Rivera has an option of receiving either an immediate bonus of $40,000, or a deferred bonus of $75,000 payable in 10 years. Ignoring tax considerations, and assuming a relevant interest rate of 8%, which form of settlement should Rivera accept?

Reference no: EM13451872

Questions Cloud

Mark yoders wishes to become a millionaire his money market : consider the following independent situations.a mark yoders wishes to become a millionaire. his money market fund has a

Stephen bosworth a super salesman contemplating retirement : stephen bosworth a super salesman contemplating retirement on his fifty-fifth birthday decides to create a fund on an 8

Describe why fed can attempt to target either changes in : what is meant by the demand for money? which way does the demand curve for money slope? why? explain why the fed can

As the money manager of boston bank you have 1000000 : 1.as the money manager of boston bank you have 1000000 available for six months. you have the opportunity to lend the

Presented below are three unrelated situations ron stein : presented below are three unrelated situations.a ron stein company recently signed a lease for a new office building

Using the appropriate interest table calculate the present : using the appropriate interest table compute the present values of the following periodic amounts due at the end of the

Analyze the bakke and the university of michigan rulings : affirmative action and the law please respond to the followingbullanalyze the bakke and the university of michigan

Lyle okeefe invests 30000 at 8 annual interest leaving the : lyle okeefe invests 30000 at 8 annual interest leaving the money invested without withdrawing any of the interest for 8

The common stock of alexander hamilton inc is currently : the common stock of alexander hamilton inc. is currently selling at 110 per share. the directors wish to reduce the

User Account

All Pages