Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Debtors may be able to realize an economic gain by defeasing their debt "in substance". A hospital has outstanding $100 million of bonds that mature in 20 years (40 periods). The debt was issued at par and pays interest at a rate of 6% (3%per period). Prevailing rates on comparable bonds are now 4% (2% per period) 1. What would you expect to be the market price of the bonds, assuming that they are freely traded. Is there an economic benefit for the hospital to refund the existing debt by acquiring it at market price and replacing it with new, "low-cost" debt? (Present value at 2% of $1 paid at the end of 40 periods= $.452890; present value at 2% of annuity of $1 paid at the end of each of 40 periods= $27.35548) 2. Assume the bonds contain a provision permitting the hospital to call the bonds in another five years (10 periods) at price of $105 and that any invested funds could earn a return equal to the prevailing interest rate of 4% (2% of $1 paid at the end of 10 periods= $.820348; present value at 2% of annuity of $1 paid at the end of each of 10 periods = $8.98258)
each of the items listed below can be found in the operating section of the statement of cash flows. indicate whether
pot co. holds 90 of the common stock of skillet co. during 2011 pot reported sales of 1120000 and cost of goods sold of
Identify the accounts that are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate (a) whether it is added or deducted, and (b) its normal balance.
a private-purpose trust fund sold investments in securities having a carrying value of 23000 for 26000 resulting in a
calaveras tire exchanged machinery for two pickup trucks. the book value and fair value of the machinery were 40000
On January 1, Year 1, JIM Company purchased a machine for $550,000. It had a useful life of 10 years and no salvage value. The machine was depreciated by the straight-line method.
the sports equipment division of jorgensen company is operated as a profit center. sales for the division were budgeted
Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. If variable costs decrease by $1 per unit, the new breakeven point is:
identify five other ways in which the private securities reform act of 1995 will potentially change auditors legal
understanding the difference between fixed and variable costs what area of a health care facility or physician practice
The managing partner of the firm decides to accept the engagement. A major factor in the decision is that the firm does not have any clients in the construction industry and this will provide valuable experience. He promptly calls the president an..
1. on march 31 2013 home decorating pavilion received a bank statement containing a balance of 9750. the balance in the
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd