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andreyandreev [35.5K]
4 years ago
15

Bonds can be issued with detachable warrants. When this occurs, how should the cash received at the issuance be accounted for: M

ultiple Choice All of the proceeds are allocated to the bonds. The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative face values. A nominal amount is allocated to the warrants. The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative market values.
Business
1 answer:
Temka [501]4 years ago
5 0

Answer:

The proceeds from the bond issue are allocated between the bonds and the warrants on the basis of their relative market values.

Explanation:

Bonds are securities issued by the company where investor can invest in such securities and can earn interest.

Warrants are rights which states that on redemption of bonds it shall be converted into company's shares.

When bonds are issued with detachable warrants, that means there is a  basic amount  of bonds and warrants. Also, each shall be accounted separately.

Bond issue of these bonds includes value of bonds that shall be accounted and added to value of bonds, and  the value of warrants shall be accounted in warrants.

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Which one of the following is a way to improve the S/Q rating of branded pairs produced at a particular production facility? Avo
Tomtit [17]

Answer: Avoiding use of green/environmentally-friendly materials (which are of lower quality than superior materials)

Explanation:

The International Footwear Federation is a consumer group that issues s/q ratings for footware makers around the world.

The S/Q ratings range from 0 - 10 stars and measure everything between the quality and appearance of the footware apparel.

Footware with high quality materials that are durable rank high in the S/Q matrix and as such it is imperative that companies aiming to move higher up the S/Q scale, use high quality materials.

Avoiding the use of green/environmentally-friendly materials (which are of lower quality than superior materials) and instead using Superior materials, whilst not entirely good for the Environment, will make a shoe stronger which would increase the S/Q rating.

7 0
3 years ago
What is the payback period for a project with an initial investment of $180000 that provides an annual cash inflow of $40000 for
Ahat [919]

Answer:

Option b: 5.2 Years

Explanation:

Payback period is defined as the amount of time it takes for cash returns or cash inflows of a project to recover the initial investment required for the project.  

Payback period is estimated using the cumulative cashflows. Beginning from the initial investment, deduct annual cash flows of each successive year until the cumulative cashflow turn positive.  

        Cashflow Cumulative Cashflow

Year 0 ($180,000) ($180,000)

Year 1 $40,000  ($140,000)

Year 2 $40,000  ($100,000)

Year 3 $40,000  ($60,000)

Year 4 $25,000  ($35,000)

Year 5 $25,000  ($10,000)

Year 6 $50,000  $40,000  

Year 7 $50,000  $90,000  

Year 8 $50,000  $140,000  

*Figures in brackets show negative cashflows

From the table above, it can be observed that the cumulative cashflow turn positive after year 5, which means that the payback period for the project will be somewhere between year 5 and year 6. Therefore, assuming a constant rate of cash inflows during the year, payback period for the project can be computed as  

Payback period = 5 Years + (10,000/50,000)  Years

Payback Period = 5.2 Years

7 0
4 years ago
You are registering for a technology conference which includes the following:
Julli [10]

Hi, you've asked an incomplete question. The remaining part of the question reads;

Think about some of the pieces are they just data? or are they put into a meaningful context? are they something that is known? Listed, are some of the things that you may do when you register/ travel for a conference. Think about the different things and select either data, information or knowledge.

1. Data of the conference -- select either data, information, or knowledge

2. Confirmation of conference registration-- select either data, information, or knowledge.

3. List of specific sessions-- select either data, information, or knowledge.

4. Upcoming technology conferences--select either data, information, or knowledge.

5. Confirmation of registered sessions -- select either data, information, or knowledge.

6. Limit of airline schedules -- select either data, information, or knowledge.

7. Upcoming airline specials -- select either data, information, or knowledge

8. Completed airline reservation -- select either data, information, or knowledge.

9. Completed car rental reservations -- select either data, information, or knowledge.

10. List of deals at special restaurants-- select either data, information, or knowledge  

11. List of restaurants in the area -- select either data, information, or knowledge.

12. List of different rental cars -- select either data, information, or knowledge.

13. Confirmation of rental cars -- select either data, information, or knowledge.

Explanation:

Key terms definition:

  • data: can basically refer to a collection of raw facts that are not arranged in any meaningful context.
  • information: this refers to data that has been processed/arranged into meaningful context.
  • knowledge: can be defined as the awareness or understanding of a particular subject or thing based on experience.

Answer:

Hence, based on the definition of key terms above we could make a classification of the different things below:

  1. <u>Data of the conference:</u> data of the conference as data.
  2. <u>Confirmation of conference registration</u>= information
  3. <u>List of specific sessions</u>=  information.
  4. <u>Upcoming technology conferences</u>= information.
  5. <u>Confirmation of registered sessions</u>= knowledge.
  6. <u>Limit of airline schedules=</u> data.
  7. Upcoming airline specials= information.
  8. Completed airline reservation= information.
  9. Completed car rental reservations= knowledge.
  10. <u>List of deals at special restaurants</u>= data.
  11. <u>List of restaurants in the area</u>= data.
  12. <u>List of different rental cars</u>= data.
  13. <u>Confirmation of rental cars</u>= knowledge.

<u />

7 0
3 years ago
The loan amount (principal) is $50,000 and the annual interest paid is $5,500. What is the annual interest rate
Mumz [18]

Answer:

The interest rate is 11%

Explanation:

The loan amount = $50000

Interest amount = $5500

Since the annual interest amount and the principal amount is given so we have to find the interest rate by using the given information. Below is the formula to find the interest rate.

Let the interest rate = x

Principal × interest rate = Interest amount

$50000 × r = $5500

r  = $5500 / $50000

r = 0.11 or 11%

The interest rate is 11%

5 0
3 years ago
The CHS Company has provided the following information:• Accounts receivable written-off as uncollectible during the year amount
NemiM [27]

Answer:

The cash that was received from collections of accounts receivable is $872,600

Explanation:

Cash collections

= Begining A/R balance + Credit Sales - Ending A/R balance - write-offs

= $240,000 + $945,000 - $300,000 - $12,400

= $872,600

Therefore, The cash that was received from collections of accounts receivable is $872,600

3 0
3 years ago
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