What is the total amount bmei paid to its bondholders

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Blue Moon Enterprise Inc (BMEI) currently has $10 million in outstanding debt via bonds with an yearly interest payment of $1 million and 100 million shares of stock outstanding. Suppose that, in 2009, BMEI had a net profit of $10 million and, in 2010, BMEI had a net profit of $1 million. Further assume that no bond matures during both years, and the corporation did not keep any net profit as a retaining earnings.

1. In 2009, what is the total amount BMEI paid to its bondholders? In 2010? Why?

2. In 2009, what is the total amount BMEI paid to its stockholders? In 2010? Why?

Reference no: EM132342120

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