Answer:
B) $8 million.
Explanation:
There are $80 worth of convertible bonds, since half of them were converted to common stocks = $80 million x 50% = $40 million
Common stock = 6 million shares x 50% x $10 (par value) = $30 million
Unamortized balance in bond discount = $4 million x 50% = $2 million
Additional paid-in capital = convertible bonds - common stock - unamortized bond discount = $40 million - $30 million - $2 million = $8 million
June 30, 2013, Bond convertion:
Dr Bonds payable 40,000,000
Cr Common stock 30
,000,000
Cr Discount on bonds payable 2
,000,000
Cr Additional paid-in capital in excess of par value 8,000,000
Answer:
a. They are what households or firms pay for products or resources.
Explanation:
The circular flow model shows how money flows in the society, from producers to workers in the form of wages, and back to the producers as money paid for products thereby providing exchange between the household and the firm.
The household work for firms in exchange for money to pay for goods and services offered by the firm while the firm sell there goods to the household so as to be able to generate profits.
GDP is the sum of all final goods and services produced by an economy in a given period. In calculating GDP only the final goods and services that are traded are accounted for. Thus, household services that do not generate income are not accounted for in GDP, only productive activities. Therefore, in the long run the tendency is that the GDP analyzed by this issue will decrease, because when the unemployment rate increases, fewer workers will be employed in the productive sector. These people may substitute work for leisure or household chores, but this will not count in GDP.
Answer:
The answer is Quality of information and Asymmetric information
Explanation:
Information quality is a multi-attribute concept, it is said to define the quality of information are of good quality or of high value then the information is said to have good quality.
Asymmetric information also regarded as "information failure" occurs in a business environment in which some agent in a trade possesses information while other agents involved in the same trade do not.
Answer:
The correct option is B,15.65%
Explanation:
Modified Internal Rate of Return(MIRR) can be determined by using the excel MIRR function,whose formula is given below:
=MIRR(values,finance rate,reinvestment rate)
The values are the cash inflows and the initial capital outlay of $850
the finance rate is the same as the reinvestment of 10% which is the rate of return that would make the investment present values of cash inflows equal the initial investment
MIRR=15.65% as found in the attached.