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murzikaleks [220]
3 years ago
11

One of the primary values of convertible debt is that it is attractive to investors because:_______.

Business
1 answer:
posledela3 years ago
5 0

Entitlement to discounts on the share price is the main reason for investors being attracted to convertible debt.

Explanation:

The shareholders who bought the shares in the earlier period will get the advantage of possessing a discount towards share price. The company shall pay more premiums in the future period when the business earns the windfall gain.

It can also link the concept of conversion cap process which shoots the price of by fixing the maximum ceiling. The face value of the a share will get automatic appreciation when the country experiences economic development. The convertible debt scheme will protect the interest of shareholders even though the company faces a poor source of financial sources.  

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Common knowledge includes declarations such as february is the shortest month of the year. with common knowledge, we do not need
katrin2010 [14]
If the statement above asks whether it is true or false. The answer would be true. It is because when you have common knowledge, it is not needed for it to be quoted for it is already common among people and it is already a knowledge of which people knows about without searching or asking about it. Quotation marks are only used when you try to quote or say things that are from the original author, information or who or where it came from and it's not yours. With common knowledge, there is no need to use them for it is already known by a lot of people and are too obvious for it to be asked of.
7 0
3 years ago
g Marginal revenue product measures the rev: 06_21_2018 Multiple Choice amount by which the extra production of one more worker
Anton [14]

Answer: The correct answer is the first statement.

Explanation: Marginal revenue product measures the amount by wich the extra production of one more worker increases a firm's total revenue.

<u>It is an economic term used to describe the change in total income that results from a unit change of one type of input variable. There are many types of input variables that you can change, such as adding an employee or a new machine.</u>

5 0
3 years ago
J Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%.
viva [34]

Answer:

Explanation:

The time (T) = 6 months = 6/12 years  = 0.5 years

Interest rate (r) = 6% = 0.06

The stock is priced [S(0)] = $36.50

The price the stock sells at 6 months (V_c) = $3.20

European call (K) = $35

The price (P) is given by:

P=V_c+K.e^{-rT}-S(0)+Dividends\\But, Dividends = 0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Therefore, P=V_c+K.e^{-rT}-S(0)+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\Substituting:\\P=3.2+35*e^{-0.06*0.5}-36.5+0.5*e^{-0.25*0.06}+ 0.5*e^{-0.5*0.06}\\P=3.2+33.9656-36.5+0.4926+0.4852\\P=1.64

The price of a 6-month, $35.00 strike put option is $1.65

5 0
3 years ago
This information relates to Cheyenne Real Estate Agency.
gregori [183]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr,                            $31,770

       To Common stock               $31,770

(Being issuance of shares for cash is recorded)

2. No Journal Entry is required

3. Office furniture Dr,          $3,740

       To Accounts payable           $3,740

(Being purchase of office furniture on credit is recorded)

4. Accounts receivable     $10,430

            To service revenue        $10,430

(Being customer billed for service is recorded)

5. Cash                                $185  

            To credit revenue       $185

(Being cash received for service is recorded)

6. Accounts payable $800  

                To cash                $800

(Being cash paid for office furniture purchased is recorded)

7. Salaries expense Dr, $3560  

               To cash                $3560

(Being salary paid is recorded)

5 0
3 years ago
Roman Industries' plant operates five days per week with a daily payroll of $6,000. Employees are paid every Saturday for the wo
Sergeu [11.5K]

Answer:

$12,000

Explanation:

Calculation to determine the amount of Wages Expense recorded on the next payday, Saturday, April 3

Using this formula

Wages Expense=Daily payroll *2 days

Let plug in the formula

Wages Expense=$6,000*2 days

Wages Expense=$12,000

Therefore the amount of Wages Expense recorded on the next payday, Saturday, April 3 is $12,000

4 0
2 years ago
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