On January 2, 2020, Crane Company wishes to issue $6400000 (par value) of its 6%, 10-year bonds. The bonds pay interest annually on January 1. The current yield rate on such bonds is 11%. Using the interest factors below, compute the amount that Crane will realize from the sale (issuance) of the bonds. Present value of 1 at 6% for 10 periods 0.5584 Present value of 1 at 11% for 10 periods 0.3522 Present value of an ordinary annuity at 6% for 10 periods 7.3601 Present value of an ordinary annuity at 11% for 10 periods 5.8892

Chance company had two operating divisions, one manufacturing farm equipment and the other office supplies. both divisions are considered separate components as defined by generally accepted accounting principles. the farm equipment component had been unprofitable, and on september 1, 2018, the company adopted a plan to sell the assets of the division. the actual sale was completed on december 15, 2018, at a price of $600,000. the book value of the division’s assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. the division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through december 15. the income tax rate is 40%. chance’s after-tax income from its continuing operations is $350,000. required: prepare an income statement for 2018 beginning with income from continuing operations. include appropriate eps disclosures assuming that 100,000 shares of common stock were outstanding throughout the year. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)

You are purchasing a bond that currently sold for $985.63. it has the time-to-maturity of 10 years and a coupon rate of 6%, paid semi-annually. the bond can be called for $1,020 in 3 years. what is the yield to maturity of this bond?

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?