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Ostrovityanka [42]
3 years ago
15

MagTech Inc. requires funding to build a new factory and has decided to raise the additional capital by issuing $850,000 face va

lue of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of 5 warrants for each $1,000 bond sold.
The value of the bonds without the warrants is considered to be $775,000, and the value of the warrants in the market is $75,000. The bonds sold in the market at issuance for $825,000.
Required:
(a) What entry should be made at the time of the issuance of the bonds and warrants?(b) If the warrants were nondetachable, would the entries be different? Discuss.

Business
1 answer:
aleksley [76]3 years ago
6 0

Attached screenshot has got your answer

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anyanavicka [17]

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Explanation:

Antonio used the value of money as a unit of account to compare the value of the two cars namely Super and Duper and come to the conclusion that Duper was cheaper to Super

Antonio saved $ 4000 in his checking account  which he gave to the seller. This represent money's role as a store of value

Antonio write a check of the money he saved to the seller and the seller accepted it and gave him the car which fulfill the role of money as a medium of exchange.

5 0
3 years ago
Between January 2010 and January 2016, U.S. employment increased by 12.1 million workers, but the number of unemployed workers d
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False, the labor forced increased

Explanation:

labor force = total number of people actively working (employed) or searching for jobs (unemployed)

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net change of L = 12.1 - 7.3 = 4.8 more million people were part of the labor force in 2016 than in 2010.

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3 years ago
Consider a monopolist currently selling output Q to two different markets: Market A and Market B. This monopolist is able to pri
sweet [91]

Answer:

1. This is true because demand in market A is more inelastic which means demand curve and marginal revenue curve are steeper in this market. at any quantity marginal revenue will be higher in market A than in market B

2. This is true because market where demand is inelastic have a higher price. This is because revenue is increased when higher price is charged in market with inelastic demand.

3. This is false/uncertain because when price is higher in market a the quantity will be lower relativity. This is due to the downward sloping demand function in which price is increased quantity will decline.

Explanation:

8 0
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Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products i
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one-to-one marketing

Explanation:

one-to-one marketing includes

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web surfe\fer

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gfuess

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