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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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A company that utilizes carbon fiber 3-D printing wants to have money available two years from now to add new equipment. The com
Alenkinab [10]

Answer:

Total amount available in two years is $1,354,125.

Explanation:

The total amount available in two years can be calculated as follows:

Total amount in the deposit now = Current deposit + Amount planned to be deposited = $650,000 + $200,000 = $850,000

Future value of the total amount the deposit now = Total amount in the deposit now * (1 + Annual interest rate)^Number of years the deposit used = $850,000 + (1 + 15%)^2 = $1,124,125

Future value of next year's deposit = Next year's deposit * (1 + Annual interest rate)^Number of years the deposit used = $200,000 * (1 + 15%)^1 = $230,000

Total amount available in two years = Future value of the total amount the deposit now + Future value of next year's deposit = $1,124,125 + $230,000 = $1,354,125

5 0
3 years ago
A firm has $848 in inventory, $1,740 in fixed assets, $668 in accounts receivable, $416 in net working capital, and $231 in cash
soldier1979 [14.2K]

Answer:

$1,331

Explanation:

With regards to the above information, we need to calculate first current assets.

Current assets = $848 in inventory + $668 in accounts receivable + $231 in cash

Current assets = $1,747

Therefore,

Current liabilities = Current assets - Net working capital

Current liabilities = $1,747 - $416

Current liabilities = $1,331

8 0
3 years ago
Why is the period from late 20s to early 40s the best time for becoming an entreprnur?​
vlada-n [284]

Late 20s to late 40s: This is almost the perfect time for would-be entrepreneurs, for many reasons: At this point in life, they know what they like, and what they don't like. They have obtained business and life skills. They have some assets and credit.

5 0
3 years ago
Read 2 more answers
Mr. Rios decided to make a business in his class by selling AP review books for all AP students. His fixed cost to begin the bus
DIA [1.3K]

Answer:

134 books

Explanation:

The breakeven point is the number of units to be sold that will make the total sales equivalent with the total cost, such that the company neither makes a profit nor a loss.

Let the number of units sold to break even be c

5c = 1.25c + 500

5c - 1.25c = 500

3.75c = 500

c = 500/3.75

c = 133.33

≈ 134 books

8 0
3 years ago
Read 2 more answers
According to the trust-based relationship selling process framework, "discovering prospect's needs" is a part of which component
Kryger [21]
<span>
According to the trust-based relationship selling process framework, "discovering prospect's needs" is a part of the  i</span>nitiating customer relationship as a component of the framework. 
<span> The initiation of customer relation is involved in the CRM (Customer Relationship Management), an approach that includes the interaction with current and potential </span>customers<span>. </span>
8 0
3 years ago
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