Question
1. Addams, Co. had a beginning retained earnings of $27,875. For the year, the company had net income of $4,790 and paid dividends of $1,600.
1. Addams, Co. had a beginning retained earnings of $27,875. For the year, the company had net income of $4,790 and paid dividends of $1,600. Addams also issued $3,000 in new stock during the year. What is the ending retained earnings balance?
2. Brandon, Inc., will issue zero coupon bonds with a par value of $1,000. The bonds will have a YTM of 5.97 percent and mature in 25 years. Assuming semiannual compounding, at what price will the bonds sell?
3. Two years ago, Robert invested $2,650. Today, it is worth $3,450. Determine the interest rate for Robert's investment?
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
