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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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When a _________ matures, you receive your entire investment back plus any remaining interest.
kiruha [24]
Bond is correct answer.

When a bond matures, you receive your entire investment back plus any remaining interest.

Hope it helped you.

-Charlie
7 0
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Honesty is important to rosa. She bought a sandwich that cost $3.50. However the clerk asked her for only $3. What should rosa d
dsp73
Be honest and pay the 50 cents.
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the factor which determines whether or not goods should be included in a physical count of inventory is
quester [9]
Answer is : legal title


The factor which determines whether or not goods should be included in a physical count of inventory is:

a. legal title.
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7 0
2 years ago
Suppose the price of a gallon of ice cream rises from $4 to $5, and the price of a can of coffee rises from $2 to $2.50. If the
ExtremeBDS [4]

Answer:

a. less ice cream, less coffee

Explanation:

The percentage change in CPI is given by:

\%CPI = \frac{177-150}{150}=0.18

The percentage change in the prices of coffee and ice cream, respectively, are:

\%C = \frac{5-4}{4}=0.25\\\%I = \frac{2.50-2.00}{2.00}=0.25

Both coffee and ice cream had an increase in price above the CPI increase, which means that both goods are being sold above the equilibrium price and thus their demand is likely to fall.

People likely will buy less ice cream, less coffee

4 0
3 years ago
When working with a client who has COPD (stable and medically cleared for exercise) and likes swimming, you should recommend the
ANEK [815]

Answer:

You should recommend that they swim:

a. 3 days per week

b. High intensity

Explanation:

The full meaning of COPD is Chronic Obstructive Pulmonary Disease. It is a disease that affects the lungs of a person and makes it very hard for that person to breathe.

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