Answer:
An optional Call
Explanation:
Callable Bond
Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.
Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.
For bonds to be callable the terms must be clearly stated in the bond's offering.
Optional Call
In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.
Furthermore, a period of time must usually pass before the issuer can use the optional call.
Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck’s actual conversion costs for the month of May follow:
<span><span>Direct and indirect labor $150,000
</span><span>Machine depreciation $85,000
</span><span>Maintenance and supplies $60,000
</span><span>Total conversion costs <span>$295,000
<span>The journal entry to record April's conversion costs will include:
</span>D. A debit to Raw and In Process Inventory
</span></span></span>Raw materials of all kinds are measured at the start<span> recorded into </span>a list plus<span> account with a debit to the raw materials inventory account and a credit to the accounts </span>collectible<span> account.When raw materials </span>are<span> consumed, the accounting treatment varies, </span>betting on<span> their </span>standing<span> as direct or indirect materials.</span>
Automated tasks
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The profit that is gained by the company for selling a unit is equal to the difference between the revenue and total cost. In this item the revenue is given to be $45 and the profit is $10. To answer this item, we let x be the cost such that,
45 - c = 10
Simplifying,
c = 45 - 10
Further simplification will lead us to,
c = 35
Answer: $35.
The interest rate that should be used when evaluating a capital investment project is sometimes called the appropriate discount rate and cost of capital.
The cost of capital refers to the minimum rate of return needed from an investment to make it worthwhile, whereas the discount rate is the rate used to discount the future cash flows from an investment to the present value to determine if an investment will be profitable. Appropriate Discount Rate means, at any time, the real (i.e., not inflation adjusted) weighted average cost of capital (after taxes payable by the concession business).
Cost of Capital = (Risk-Free Rate of Return + Credit Spread) × (1 – Tax Rate)
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