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Author Question: Which of the following is NOT true of a sole proprietorship? A) Sole proprietorships are the ... (Read 74 times)

gbarreiro

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on: Jul 10, 2018
Which of the following is NOT true of a sole proprietorship?
 
  A) Sole proprietorships are the least regulated form of business.
  B) Sole proprietorships are the easiest form of business to establish.
  C) Sole proprietorships are the most popular form of business organization (more sole proprietorships than other forms of business).
  D) All of the above are true.

Question 2

Zhen Yi Computers has an outstanding issue of bond with a par value of 1,000, paying 12 percent coupon rate semi-annually. The bond was issued 25 years ago and has 5 years to maturity.
 
  What is the value of the bond assuming 14 percent rate of interest?


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epscape

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D

Answer to Question 2

Coupon payment = 1,000  0.12 = 120
Semi-annual coupon payment = 120/2 = 60
Using financial calculator: PMT= 60, I=7, N=10, FV=1000, CPT PV = 929.76


gbarreiro

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

zacnyjessica

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Reply 3 on: Yesterday
Gracias!

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