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LuckyWell [14K]
3 years ago
10

Which of the following four companies will have the lowest carrying value on their bonds if they decide to redeem their bonds be

fore the maturity date? Assume each company’s bonds have a face value of $15 million and 10% of the premium or discount is unamortized at the time of redemption.
A) Company 3 sold their bonds at 102 and redeemed them at 98.
B) Company 2 sold their bonds at 98 and redeemed them at 99.
C) Company 1 sold their bonds at 94 and redeemed them at 106.
D) Company 4 sold their bonds at 103 and redeemed them at 104.
Business
1 answer:
Dennis_Churaev [7]3 years ago
6 0

Answer:

C) Company 1 sold their bonds at 94 and redeemed them at 106.

Explanation:

The face value of bond issued in 4 companies are same, then it's clearly that the company 1 will have the lowest carrying value on their bonds because they sold at lowest price but buy back (redeem) at highest prices.

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Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiat
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Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiated a <u>blanket purchase order</u> with a client that represented the customer's long-term commitment to buy components from Hung.

<u>Option: D</u>

<u>Explanation:</u>

Here Ngai announcement means that the firm's consumers with their suppliers are going to enable several distribution dates across a period of time, often structured to reap the benefits of fixed prices which showcase the long-term relation between firm and consumer, thus understood as a blanket purchase order.

It is basically utilized when expendable products are recurrently needed. Blanket orders are commonly used when a consumer purchases large amounts and receives special discounts. Calculating the predicted amount planned by the recipient of the commodity is the toughest part of getting an agreement.

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3 years ago
Getaway Travel Company reported net income for 2016 in the amount of $50,000. During 2016, Getaway declared and paid $2,000 in c
PSYCHO15rus [73]

Answer:

Option (B) is correct.

Explanation:

Given that,

Net income = 50,000

Preferred dividend = 2,000

Outstanding common stock:

= (40,000 × 2) + (10,000 × 6/12 × 2)

= 80,000 + 10,000

= 90,000

2016 basic earnings per share:

= (Net income - Preferred dividend) ÷ Outstanding common stock

= (50,000 - 2,000) ÷ 90,000

= 48,000 ÷ 90,000

= $0.53 per share

Therefore, the 2016 basic earnings per share is $0.53.

4 0
3 years ago
A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real w
elena-14-01-66 [18.8K]

Answer: Both will raise the same amount

Explanation:

The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.

Both methods would therefore yield the same amount if the government uses either of them.

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2 years ago
Which of the following statements is CORRECT? Group of answer choices Unlimited liability and limited life are two key advantage
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Answer:

The correct statement is;  Limited liability is an advantage of the corporate form of organization to its owners (stockholders), but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.

Explanation:

A limited company can either be private or public. A limited company posses these 2 key features namely;

1.  Limited liability- the liability of shareholders is limited to the amount of their investment in the company.

2. Seperate legal existence-  a limited company can in it's name sue, be sued and enter into contracts.

Limited liability means that the investors can only lose the money they have invested and no more, meaning lenders have to keep this in mind when issuing loans to limited companies.

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3 years ago
You invest 50% of your money in security A with a beta of 1.6 and the rest of your money in security B with a beta of 0.7. The b
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Answer:

The answer is D). 1.15, hope this helps, have a great day/night, stay safe, happy thanksgiving!

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3 years ago
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