If a contractual obligation can be negated by a particular action, the contractual promise is said to be _?

On December 1, 2018, Marigold Corp. issued at 102, 750 of its 7%, $1,000 bonds. Attached to each bond was one detachable stock w

balu736 [363]

Answer:

$726,750

Explanation:

According to the given problem,

Bonds issued at 103% of the face value.

Face value of the bonds = $1000

Coupon rate = 7%

Number of bonds issued = 750

The data indicates that each bond is issued with a separate stock warrant which has a market value of $50.

However the question was provided that the value of the proceeds from issuing the bonds should be found.

At 102 per cent of the bond's face value, each bond is issued.

Request bond price along with stock warrant.

= 102% ($1000) = $1020

Total number of bonds = 750

Proceeds from the issuance of total number of bonds

= 750 * $1020 = $765 000

The value of the proceeds from issuing the bonds therefore is $765 000.

You deduct the $50 stock purchase warrant at 102 per cent initial market value.

50 * 1.03 = 51

51*750 = 38250

$765,000 - $38,250 = $72,6750

3 0

3 years ago

The short run aggregate supply curve was constructed assuming that as the price of outputs increases, the price of inputs stays

weeeeeb [17]

Explanation:

as higher input prices makes output less profitable decreasing the desired supply this is shown graphically as leftward shift in AScurve

5 0

3 years ago

Select the correct answer. What direction does the relationship between supply and price take? A. slopes upward B. parallel to t

weeeeeb [17]

Answer:

A. slopes upward

Explanation:

(I will include a picture in the attachment to help with the explanation)

Slope upward represent the increase in quantity as the price goes up.

As the price of a product is increased, the potential profit that the producer can generate is also higher. Because of this, they become motivated to supply more product for the customers. They will increase their production output and increase the amount of distributions to the market.

This is why the slope will become upward like the picture above.

8 0

3 years ago

Darden Restaurants is expected to pay annual dividends of $1.90 and $2.10 over the next two years,respectively. After that, the

Ainat [17]

Answer:

$13.89

Explanation:

The computation of the value of stock is shown below:

Year Dividend Present value factor at 16% Present value

1 $1.90 0.862 $1.64

2 $2.10 0.743 $1.56

3 $2.30

Price $14.375 0.743 $10.68

The price is computed below:

= $2.30 ÷ 16% = $14.375

Total present value $13.89

The present value factor is computed below:

= 1 ÷ (1 + rate) ^ years

For Year 1 = 1 ÷ 1.16^1 = 0.862

For Year 2 = 1 ÷ 1.16^2 = 0.743

7 0

3 years ago

Choose ONE of the costing systems studied from the list below, and answer the questions that follow:

r-ruslan [8.4K]

Answer:

Activity based costing method has gained significance in the business world.

Explanation:

a. Activity based costing is a method in which cost driver is identified for each cost that occurs during the manufacturing process. The overhead rate is calculated based on cost drivers. This method has gained significance in business due to the ease of its application and costs are assigned to their respective cost drivers.

b. The activity based costing is used by various organizations in Australia. Booth and Giacobbe, Clarke and Mia and many other companies have successfully implemented ABC costing system in their businesses. The increased and diverse products costs are easily calculated by applying activity based costing method.

c. The companies can use the activity cost method to calculate the overhead rate that will be applied to the product. These overheads will be included in the cost of the product and then cost per unit for each unit produced is identified. This helps managers to select suitable selling price and cost cutting managements.

7 0

3 years ago

If a contractual obligation can be negated by a particular action, the contractual promise is said to be _?_.