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Fofino [41]
3 years ago
10

Ford Motor Company has issued 8% convertible debentures, convertible at a 10:1 ratio. Currently the debenture is trading at 94.

The stock is trading at $80. What is the conversion price of the stock
Business
1 answer:
Dafna1 [17]3 years ago
7 0

Answer: $100

Explanation:

Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.

To calculate the Conversion Price, the following formula is used;

= Par Value / Conversion Ratio

= 1,000/10

= $100

Par value is usually $1,000 for such instruments.

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The following are the Consumer Price Index (CPI) for the years 1991-1993. All of the values use a reference year of 1986.
Mnenie [13.5K]

Answer:

1986 is the base year. so, the CPI of the base year is always 100%.

Option A

The value of $100 in 1993 would be = ($100/CPI of 1986) * CPI of 1993

= ($100/100) * 135

= $135

So, Option A is true.

Option B

$100 in 1992 would have been worth in 1986: ($100/CPI of 1992) * CPI of 1986

= ($100/120) * 100

= $83.33

So, Option B is false.

Option C

$100 in 1991 would have been worth in 1986: ($100/CPI of 1991) * CPI of 1986

= ($100/110) * 100

= $90.91

So, Option C is false.

Option D

The value of $100 in 1992 would be: ($100/CPI of 1993) * CPI of 1992

= ($100/135 * 120

= $88.89

So, Option D is false.

6 0
3 years ago
In which of these instances is the hotel staff member communicating positively?
MrRissso [65]

The answer is A. A restaurant manager greets customers mechanically at the entrance.

7 0
3 years ago
Suppose that in one year the Consulting Corporation had net sales of $750,000 and in the next year had net sales of $925,000. Wh
sergey [27]

Answer:

23.33%

Explanation:

Data provided in the question

Net sales in one year = $750,000

And, the next year net sales = $925,000

So by considering the above information, the  percentage change in using horizontal analysis is

= Difference in amount ÷ Net sales in one year

= ($925,000 - $750,000) ÷ ($750,000)

= ($175,000) ÷ ($750,000)

= 23.33%

3 0
3 years ago
A gas company in Massachusetts charges $1.30 for 15 ft3 of natural gas (CH4) measured at 20°C and 1.0 atm. Calculate the cost of
Vesnalui [34]

Answer:

$0.0224

Explanation:

First, determine the amount of heat required to raise the temperature of 450 mL water from 20°C to 100°C.

density of water = 1 g/mL  

Use = AH = m(AT)Cp

AH (delta H) = amount of heat required

m = mass of water = 450 mL: (1g/mL) = 450 g

AT(delta T) = temperature difference = 100 - 20 = 80 °C

Cp = specific heat of water (from a table) = 4.18 J/g °C

So,  

AH  = 450 (80) (4.18) = 150 480 J = 150.48 kJ

Second, determine the heat ACTUALLY required

Since 50 % of heat produced (from combustion of methane) are used for water,

heat ACTUALLY required = 2 x 150.48 kJ = 300.96 kJ

Third, determine the amount of methane in the supply (in mole)

Assume ideal gas,

PV = nRT

P = 1.0 atm

V = 17 ft3 = 481.38 L

T = 20 + 273 = 293 K  

R = 0.082 1 L atm K−1 mol−1

n = PV/RT

so,

n = (1 x 481.38)/(293 x  0.0821) = 20.011 mol

Interpretation: 17 ft3 of methane supplied is equivalent to 20.011 mol methane (17 ft3/20.011 mol)

Fourth, determine the heat produced from combustion of methane

The combustion of methane gas is represented by the reaction:

CH4 (g)  +   2 O2 (g) CO2 (g)  +   2 H2O (g)  

heat of combustion =

[heat of formation of CO2 (g) + 2 x heat of formation of H2O (g)] -

[heat of formation of CH4 (g) + 2 x heat of formation of O2 (g)]

From the standard table:

= [ -393.5 kJ + 2x(-241.8 kJ)] - [-74.8 kJ + 2x(0 kJ)]

= - 802.3 kJ  

Interpretation: The combustion of 1 mole of methane produces 802.3 kJ, otherwise known as molar enthalpy (-802.3 kJ/mol)

Fifth, determine the amount of methane required from energy requirement for heating water

heat required = 300.96 kJ

So,  

methane required = 300.96 kJ (1mol/ 802.3 kJ) =  0.3751 mol

Sixth, determine the volume of methane required

Volume methane required = 0.3751 mol (17 ft3/20.011 mol)

= 0.3186 ft3

Finally, the cost required at price rate $1.20/17 ft3

Cost of methane =  0.3186 ft3 ($1.20/17 ft3) =  

$0.0224

6 0
4 years ago
Selected transactions from the journal of Larkspur, Inc., are presented below. Date Account Titles and Explanation Debit Credit
marshall27 [118]

Answer:

The requirement of the question is below:

Post the transactions to T accounts. (Post entries in the order displayed in the problem statement.)

The postings of the transactions to t accounts are found in the attached

Explanation:

In doing the post , I have observed strictly the rule of double that the giving account be credited and the receiving account be debited.

Also,this could be done understanding that assets ,expenses and drawings should be debited when they increase and the reverse when there is reduction.

Besides, liabilities,capital and income should be credited when they increase and the reverse for the opposite.

Check the highlighted balances as well and note that the balances are named after the side with balance brought down.

Download xlsx
4 0
3 years ago
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