The answer is C, good luck!
Answer: The bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Explanation:
1) In order to find out the number of bonds issued we need to divide 750,000 (Total ) by 1000(Face value of each bond).Total number of bonds issues therefore are 750.
2) A 12 percent convertible bond means that the bond pays a coupon of 120 ( 0.12 * 1000) every year.
3) Each bond is convertible into 25 shares , which means if one bond is converted into common stock, the bond holder can earn $1750. We calculate this number by multiplying the number of shares which is 25 into the current market price of the shares which is 70.
4) Also the company is offering an extra $500 per bond for converting it which means (500/25) an extra $20 per share.
5) So in total the bondholder by converting a bond and selling the shares he gets by converting it can earn $2250 per bond which they bought for a $1000 and gives them 120$ of interest every year.
6) SO to conclude the bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.
Answer:
Entrepreneurship is the name given to the factor of production which performs the functions of Enterprise. In economics, Land, Labour, Capital, Organisation and Enterprise are the five factors which are thought to be the basis of all the production activities. Entrepreneurship in a broader sense can be considered as a process of action undertaken by an entrepreneur (Person) to establish his enterprise. It is a creative and innovative response to the environment. Entrepreneurship can be described as a creative and innovative response to the environment. Such responses may take place in any field of social endeavour may be business, agriculture, social work and education etc.
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Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
Capabilities are defined as a company's Skills as coordinating its resources and putting them to productive use.
A person or thing has the ability to perform something, according to the definition of a capability. This is an instance of when someone has the capacity to cook when they are able to cook. The ability of a computer to open a file is demonstrated, for instance, when the computer can do so.
The volume and quality of labor that a person is capable of performing determines their capacity.... a job that was beyond the scope of one man.... the director's expectations of the actor's capacity.
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