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pychu [463]
3 years ago
11

If convertible bonds were issued at a discount, when computing diluted EPS, the amortization of the bond discount: Multiple Choi

ce Will increase the numerator. Will decrease the numerator. Will have no effect. May increase or decrease the numerator, depending on the amortization method used.
Business
1 answer:
Brums [2.3K]3 years ago
6 0

<u>Answer:</u> Option 1

<u>Explanation:</u>

If the convertible bonds are issued at discount then it will increase the numerator. Convertible bonds yields a fixed interest income. When the convertible bonds are issued at a discount then they can be converted into shares and discount is considered in the purchasing price of the stock.

In amortized bond the each payment goes towards the interest as well as the principle amount. Amortization reduces the credit risk as the principle is repaid on maturity or on default of the firm.

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Becky’s daughter was in the sixth grade and growing very fast. In early fall, her daughter tried on her soccer cleats from the s
olga nikolaevna [1]

Answer:

Purchase decision process

Explanation:

A purchase decision process is defined as the thought process that goes into buying a certain product. This thought process include the buyer identifying a need, creating options, seeing different brands and then finally buying the product.

Purchase decision could be either minor or major. Purchasing things like tea, toothpaste, etc require minor decision processes while buying a house or piece of land involves major decision processes.

As in the question, Becky now has to under purchase decision process as to buying soccer cleats for her daughter. This decision will involve buying a brand that won't shrink as a result of weather changes or wear out easily, etc

I hope this helps.

5 0
3 years ago
At the start of its fiscal year, a company anticipated producing 300,000 units throughout the year. The annual budgeted manufact
scoray [572]

Answer:

The correct answer to the following question is $36,000.

Explanation:

Given information  -

Units anticipated to be produced - 300,000 units

Variable cost - $150,000

Fixed cost - $600,000

Beginning inventory - 5000 units

Ending inventory  - 7000 units

Income under absorption costing - $40,000

Now under the absorption costing, rate of fixed overhead cost per unit -

Fixed cost / Number of units produced

= $600,000 / 300,000

= $2

In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -  

Fixed overhead rate per unit x number of units produced but not sold

= $2 x 2000 ( 7000 units - 5000 units )

= $4000

So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -

$40,000 - $4000

= $36,000 .

6 0
3 years ago
Twenty additional kayakers pay $3,000 ($150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of
lisabon 2012 [21]

Answer:

Dr Cash (3,000)

Cr Deferred Revenue (4,000)

Cr Service Revenue (Clinic) (7,000)

Explanation:

Preparation of the appropriate journal entry

Since we were told that kayakers pay the sum of $3,000 at $150 each, by adding to the $4,000 that was already paid in advance on July 30 this means we have to record the transaction by Debiting Cash with the amount of (3,000); Crediting Deferred Revenue with the amount of (4,000) and Crediting Service Revenue (Clinic) with the amount of (7,000)

Note that the credit side of the transaction which is Deferred Revenue of 4,000 -Service Revenue (Clinic) of 7,000 will give us (3,000)

Journal entry

Dr Cash (3,000)

Cr Deferred Revenue (4,000)

Cr Service Revenue (Clinic) (7,000)

7 0
3 years ago
Consider the case of the following annuities, and the need to compute either their expected rate of return or duration.
anastassius [24]

Answer:

1. 5.00%

2. 15.70 year

Explanation:

As per the data given in the question,

1)  For computing the interest rate we need to applied the RATE formula which is shown in the attached spreadsheet

Given that

Future value = 0

Present value = -$2587.09

PMT = $950

NPER = 3  years

The formula is shown below:

= RATE(NPER;PMT;-PV;FV)

The present value comes in negative

After applying the above formula, the interest rate is 5%

2)  For computing the number of years we need to use NPER i.e to be shown in the attachment below

Given that

Future Value = $920,925

Present Value  = 0

PMT = -$40,000

Interest rate = 5%

The formula is shown below

= NPER(RATE;-PMT;PV;FV)

The PMT comes in negative

After applying the above formula, the nper is 15.70 years

6 0
3 years ago
Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
3 years ago
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