1. On January 1, 2023, STU Corporation obtained a $52,000, 4-year, 6.5% instalment note

payable from National Bank. The note requires annual payments consisting of $15,179

( principal and interest ) beginning on December 31^st, 2023. The December 31^st, 2023

principal balance ( after the first payment ) will be equal to:

A. $27,635

B. $40,201

C. $36,821

2. VWX Corporation issues 10-year bonds on January 1, 2023. The bonds have a face

value of $100,000, a contractual interest rate of 15% and pay interest semi-annually on

January 1^st and July 1^st. The market interest rate on the date of issue was 12%.

On July 1^st, 2023, how much bond interest expense would VWX record ( round to

the nearest dollar )?

A. $14,065

B. $7,500

C. $8,790

D. $7,032

E. $6,000

3. Huge Corporation has issued 3,000, $7 noncumulative preferred shares and 10,000

common shares. Dividends have not been paid on the preferred shares for the current and

one prior year. Huge has recently prospered, and the board of directors has voted to pay

out $49,000 from retained earnings in cash dividends. Once the $49,000 is paid out, how

much would the preferred and common shareholders receive per share?

A. $14.00 per share preferred, $0 per share common.

B. $7 per share preferred, $2.80 per share common.

C. $0 per share preferred, $4.90 per share common.

D. $14.00 per share preferred, $0.70 per share common.

E. $12.25 per share preferred, $0.23 per share common.