Answer: Bonds do not affect owner control.
Explanation:
Bonds are simply refered to as the units of corporate debts which are being issued by companies. It is a fixed income instrument and its advantage is that the bonds do not affect owner control.
Bonds can also bring about a rise in the return on equity. Therefore, the correct option is A.
Answer:
a. 15,650
Explanation:
Department E
FIFO Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units Complete 15000 100 100 15000 15000
Add Ending Inv 3000 100 70 3000 2250
less
<u>Beginning Inv. 4000 100 40 4000 1600</u>
<u>Equivalent Units 14000 15650</u>
<u />
<em>The equivalent units for materials using FIFO are 14000 and for conversion are 15650.</em>
<em></em>
<em>In FIFO we add the completed units with the % of complete units in the ending inventory and subtract the beginning Work in Process Opening Inventory % complete units. </em>
<em>We need to calculate the units first transferred out.</em>
Answer:
D) There is no contract.
Explanation:
The main requirements for a legal contract to exist is that:
- there is something of consideration being exchanged (in this case $ and the armoire).
- there is an offer and acceptance, and all parties involved must decide freely (in this case there is only an offer, but there is no acceptance).
- all the parties involved must be capable of engaging in a contract (e.g. no minors nor mentally disabled)
- the consideration must be legal, e.g. a contract for buying drugs is not a valid contract
Answer:
b. $12.67
Explanation:
The value of the company is the present value of its future dividends payments discounted at the company's cost of equity.
Year 1 dividend=current year dividend*(1+12%)
Year 1 dividend=$60m*(1+12%)=$67.20m
Year 2 dividend=$67.20m*(1+12%)=$75.26m
Year 3 dividend=$75.26m*(1+12%)=$ 84.30m
Year 4 dividend=$ 84.30m*(1+12%)=$ 94.41m
Year 5 dividend=$ 94.41m*(1+12%)=$105.74m
the terminal value of dividends=Year 5 dividend*(1+terminal growth rate)/(cost of equity)
the terminal value of dividends=$105.74m*(1+8%)/(16%-8%)=$1427.49m
value of the company=$67.20/(1+16%)^1+$75.26/(1+16%)^2+$ 84.30/(1+12%)^3+$ 94.41/(1+16%)^4+$105.74/(1+16%)^5+$1427.49/(1+16%)^5
value of the company=$956.00 m
value of one share=$956.00 m/75m=$12.75(the correct option is $12.67 the difference is due to rounding error)
Answer:
Explanation:
Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab-a practice known as DEBT_ finance
Buying a bond issued by NanoSpeck would give Paolo _business interest in _______ the firm
In the event that NanoSpeck runs into financial difficulty, BONDS _______ will be paid first.
.
