1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dimaraw [331]
1 year ago
6

If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stre

am from:____.
Business
1 answer:
Dafna1 [17]1 year ago
3 0

If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>

Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.

Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.

Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.

Learn more about bonds here brainly.com/question/9817093

#SPJ4

You might be interested in
Interdepartment Services: Step Method
Stells [14]

Answer:

O'Brian's Department Stores

a) Determination of the percentage of total personnel department services that was provided to the Payroll department

Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage.  The personnel employees are not included in this calculation.

= 4/32 x 100 = 12.5%

b) Percentage of total payroll department services provided to the personnel department.  Since the basis is the gross payroll, we can use this to calculate the percentage.  The gross payroll of the Payroll department is not included in the calculation.

= $6,000/$42,100 x 100 = 14.3%

c)                          Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

Total cost      $13,800   $6,500    $22,800     $37,400  $24,850  $105,350

Allocation of service departments costs, using the step method:

Personnel      -13,800      1,725          3,450         6,900       1,725       13,800

Payroll              0           -8,225           2,415         3,965        1,845       8,225

Total allocated 0               0          $28,665    $48,265   $28,420 $105,350

Explanation:

a) Data:

                        Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

b) Cost allocation & Calculations:

Personnel (based on the number of employees)

Rate = $13,800/32 = $431.25 per employee

Payroll (based on gross payroll)

Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments

= $8,225/$36,100 = $0.2278 per gross payroll

c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs.  Three methods exist for allocating service departments' costs to the production departments.  The first, which is the simplest, is the direct method.  With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services.  They are not allocated to other service departments.

The second method is the step method.  Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step.  The costs of the next service department with the highest costs are allocated to the remaining departments.  This step is continued until all the service departments' costs have been allocated.  Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.

The Reciprocal method, which is the last method, is the most accurate and complicated method.  This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments.  We may not discuss it further than this.

3 0
3 years ago
Which of the following funds of a governmental unit uses the same basis of accounting as an enterprise fund?
ycow [4]

Answer:

The correct answer is a. Special revenue.

Explanation:

A special revenue fund is an account established by a government to raise money that must be used for a specific project. Special income funds provide an extra level of responsibility and transparency to taxpayers that their taxes will be used for a specific purpose.

Example: A city could establish a special income fund to pay the costs associated with stormwater management. The money from this fund could only be used for stormwater management expenses, such as street sweeping, sewer and ditch cleaning, system maintenance and a public awareness campaign. The city would have to publicly report where it raised the money from the special income fund and how it spent the budget of the special income fund.

3 0
3 years ago
Dawn's credit card has an APR of 15%, calculated on the previous monthly
vladimir1956 [14]

Explanation:

It can be tempting to pay the minimum amount due on your credit card bill, but it can be really expensive in the long run. Here's what happens if you only pay the minimum on your credit card.

4 0
2 years ago
Walker Telecommunications has a quick ratio of 2.00x, $35,550 in cash, $19,750 in accounts receivable, some inventory, total cur
laiz [17]

Answer:

c) 8.44x

Explanation:

Total current assets = cash + account receivable + inventory

⇔ $79,000 = $35,550 + $19,750 + Inventory

⇒ Inventory = $79,000 - $35,550 - $19,750 = $23,700

The inventory circles based on annual sales = Sales/ inventory = $200,000/ $23,700 = 8.44

3 0
3 years ago
Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie
Paraphin [41]

Answer:

The correct answer would be option A, The lump sum is always better.

Explanation:

If I would have to give advice to my friend who is in the same situation as i was in some time back, I would recommend him to go for the Lump sum choice. This is because of the fact that the interest rate compounded in three years payment schedule will result in the less value of what I am getting today. Accepting the lump sum value in contrast with accepting the yearly payments on 9% interest rate would be better off because it has more value at present.

5 0
3 years ago
Other questions:
  • The purpose of posting is to?
    9·2 answers
  • Maria wants to become a computer programmer. What SMART, short-term goal could she set for herself
    9·2 answers
  • Clip Joint company is ready to sell its bonds. Which of the following financial questions is most relevant to the issue of the b
    13·1 answer
  • Consider how McKnight Valley River Park Lodge could use capital budgeting to decide whether the $ 11 comma 500 comma 000 River P
    12·1 answer
  • If U.S. residents chose to travel overseas less due to concerns about the safety of foreign travel, then in the open-economy mac
    13·1 answer
  • WILL GIVE BRAINLIEST TO FIRST CORRECT ANSWER!
    12·2 answers
  • a. might make you better off if your nominal wages fall more rapidly than prices. b. automatically occurs when there are more go
    7·1 answer
  • As a consumer consumes more of a good or service, the additional satisfaction of consuming the additional units goes down. This
    5·1 answer
  • Identify which statement is true of specialty products. Group of answer choices They are made directly available to a consumer t
    8·1 answer
  • in some games, one player or firm moves first and commits to a strategy to which the rival player or firm will subsequently resp
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!