Answer:
False
Explanation:
The reputation can be permanently harmed when a conflict of interest is possible.
Answer:
$1,200
Explanation:
For this question, we use the unitary method that is shown below:
Given that
Conversion price = $1,000 par
And, the subordinated debentures is $40
And the present market price is $48
So, the present conversion value is
= Conversion price × the present market price ÷ the subordinated debentures
= $1,000 × $48 ÷ $40
= $1,200
Answer:
18.5%
Explanation:
The formula to compute the average rate of return is shown below:
= Annual net income ÷ average investment
where,
Annual net income equal to
= Expected total net income ÷ number of years
= $240,000 ÷ 4
= $60,000
And, the average investment would be
= (Initial investment + salvage value) ÷ 2
= ($650,000 + $0) ÷ 2
= $4650,000 ÷ 2
= $325,000
Now put these values to the above formula
So, the rate would equal to
= $60,000 ÷ $325,000
= 18.5%
