What is the value of the investment on january

Assignment Help Accounting Basics
Reference no: EM133127646

Questions -

Q1. On January 1, 2020, ABC Corporation invested in P2,000,000 bonds of DEF Company that will mature on December 31, 2022. The bond has a coupon rate of 10% and a required rate of return of 12%. What is the value of the investment on January 1, 2020?

Q2. ABC Corporation invested in one of DEF's ordinary shares that has a par value of P500 and a market value of P625 on January 1, 2021. The 2020 dividend paid to each shareholder amounted to P120. The dividend rate is not expected to grow. what is the value if the required rate of return is 17%?

Reference no: EM133127646

Questions Cloud

Prepare adjusting entries : Invoices representing $1,700 of services performed during the month of June have not been recorded as at June 30. Prepare adjusting entries
Terrorist attack-chemical accident-pandemic-an epidemic : What goals and procedures would you have in place in the event of a catastrophe such as a terrorist attack, a chemical accident, a pandemic, or an epidemic?
What is the specific problem in that research area : Explain what you are intending to achieve by conducting this research. There are several ways in which your research objectives
What is the budgeted operating income : Budgeted variable costs per unit include $5 of selling expenses (commission) and $7 of manufacturing costs. What is the budgeted operating income
What is the value of the investment on january : The bond has a coupon rate of 10% and a required rate of return of 12%. What is the value of the investment on January 1, 2020
Calculate tim net worth : The book value of Tim's TFSA is $73,500, and its current market value is $97,000. Calculate Tim's net worth
Organizational ethics important to health care organizations : Why is the concept of organizational ethics important to health care organizations? What's your experience with organizational ethics?
Calculate the total sales and variable rate : Aday Resort and Spa recorded the following information last month: Using the information above, calculate the following: 1. Total Sales, 2. Variable Rate
Discuss how the six cultural dimensions impact the workplace : Discuss how the six cultural dimensions impact the workplace. Determine what strategies you can use to successfully manage the different cultural dimensions.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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