If it’s valid to say that fall in stock price is evidence that managers are not acting in the interest of stockholders

Question

The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:

Answer 1

Question

Chapter 1, Problem 20PROB

Summary Introduction

To determine: If it’s valid to say that fall in stock price is evidence that managers are not acting in the interest of stockholders

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The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18,905 at 10% for 4 years. Use ordinary interest as needed. Calculate the simple interest note proceeds. Calculate the simple discount note proceeds.

What you're solving for Solving for maturity value, discount period, bank discount, and proceeds of a note. What's given in the problem Face value: $55300 Rate of interest: 10% Length of note: 95 days Date of note: August 23rd Date note discounted: September 18th Bank discount rate:9 percent