ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 41
per share
(d)
Payout ratio of common stock
%
(e)
Return on common stock equity
%
2) On January 1, 2015, Piper Co. issued ten-year bonds with
a face value of $3,000,000 and a stated interest rate of 10%,
payable semiannually on June 30 and December 31. The bonds
were sold to yield 12%. Table values are:
Present value of 1 for 10 periods at 10%
.386
Present value of 1 for 10 periods at 12%
.322
Present value of 1 for 20 periods at 5%
.377