A convertible bond would let the investor exchange it for common stock
What is a convertible bond?
A convertible bond allows the investors (lender) to exchange the bond for something else within a given time under any conditions specified in the bond indenture.
How does a convertible bond work?
A convertible bond pays fixed-income interest payments, but can be converted into a predetermined number of common stock shares. The conversion from the bond to stock happens at specific times during the bond's life and is usually at the discretion of the bondholder.
Common stock :
Common stock is a security that represents ownership in a corporation. In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid. There are different varieties of stocks traded in the market.
Learn more about common stock :
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Answer:
Contribution margin per production hour for product X = $12
Contribution margin per production hour for product X = $15
Explanation:
The computation of contribution margin per production hour is given below:-
Product X Product Y
Contribution margin per unit $6 $5
Units produced per hour 2 3
Contribution margin per production hour $12 $15
Working note =
Contribution margin per production hour for product X = Contribution margin per unit × Units produced per hour
= $6 × 2
= $12
Contribution margin per production hour for product Y = Contribution margin per unit × Units produced per hour
= $5 × 3
= $15
Answer:
The answers are as follows;
1. the total of all accumulated and unpaid deficits (b. Debt)
2. a situation in which outlays exceed revenue (d. Deficit)
3. a situation in which revenue exceeds outlays (a. Surplus)
4. the fee that borrowers pay to debt holders (c. Interest)
Explanation:
Answer: Retained earnings would reduce by the $840,000 dividend.
Explanation:
Stock dividends to the shareholders is to be paid from the retained earnings of the company as it represents profits that the shareholders get because they are owners in the company.
Retained earnings spent = Number of shares * Market price * Stock dividend
= 140,000 * 15 * 40%
= $840,000
Retained earnings would reduce by the $840,000 dividend.