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sergeinik [125]
3 years ago
13

"A corporation has issued $1,000 par, 8% convertible bonds, callable at par. The bonds are convertible into 20 shares of common

stock. Currently, the bond is trading at 100 1/2 while the common stock is trading at $51. The corporation calls the bonds at par plus accrued interest of $10 per bond. A customer holds 100 bonds, purchased at par. The customer wishes to liquidate the position at the greatest profit. The BEST recommendation is to (ignoring commissions):"
Business
1 answer:
enot [183]3 years ago
3 0

Answer:

Convert the bonds into 20 common stocks.

Explanation:

the investor has 3 options:

  1. sell the bond at $1,000 x 1.005 = $1,005
  2. sell the bond to the corporation at $1,000 + $10 = $1,010
  3. convert the bond into 20 common stocks = 20 x $51 = $1,020

the option that yields the highest return is to convert the bonds into common stocks.

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According to the quadrants of the social style matrix, which of the following should salespeople do when selling to expressives?
kvv77 [185]

Answer:

B) They should demonstrate how their product will help the customers achieve personal status and recognition.

Explanation:

The social style matrix uses personality traits to categorize customers. It divides people into four categories:

  1. Driving Style: controlling, determined and active people
  2. Expressive Style: enthusiastic and emotional people
  3. Amiable Style: friendly and relationship driven people
  4. Analytical Style: thoughtful and reserved people

Since we are trying to sell goods to expressive people, then we must focus on how the goods will make them feel more important (VIPs). They seek the attention and notice of other people (they are show-off people). They want to feel important and they will buy goods that make them feel that way.

5 0
3 years ago
A limited liability company (LLC) will be taxed as a corporation unless it elects to be taxed as a partnership. True False
hichkok12 [17]

Answer:

True

Explanation:

A LLC is a company that has its own identity and is taxed separated from all owners and investors.

6 0
3 years ago
The following is an extension economy of scale
ValentinkaMS [17]

The example of an extension economy of scale is Bulk buying.

Explanation:

  • economies of scale are the main cost whose advantages are for the enterprises that  obtain due to their scale of operation, which is measured by the amount of output produced by the company with cost per unit of output resulting in decreasing with increasing scale.
  • Economies of scale apply to a vast variety of organizational and business situations and at multiple areas, such as a production, the plant or an entire enterprise.
  • Another source of scale economies is the possibility of purchasing inputs at a lower cost per unit, when they are purchased in large quantities.
  • Managerial economies of scale occur when large firms are able to afford specialists. They manage i an effective manner, particular areas of the company.
  • Economies of Scale refer to the cost advantage that us experienced by a firm when it increases its level of output.
  • The advantage of the huge buying arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.

8 0
3 years ago
The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak
Gnoma [55]

Answer:

b) assessment lien.

Explanation:

In this scenario, The City of Grand Rapids installed a new water main on Oak Street. The city then decided to charge the property owners along Oak Street a proportional cost of the new water main. If a property owner refuses to pay their proportional share of the cost, the city may file assessment lien.

Assessment lien can be defined as a hold or a legal claim on a property being owed by another, while benefiting from an improvement or modification made and shall be deducted from the client for the improvements made by a municipal owner.

3 0
3 years ago
Inventory is important in the supply chain for many different reasons. Why would you invest the​ company's money for inventory a
Makovka662 [10]

Answer:

All the answers are right

Explanation:

A.To provide a hedge against inflation. : in an inflationary economy, a company can invest in inventory in order to be prepared for the higher prices of raw materials to come. So they can maintain the company´s profit.

B. To tightly synchronize production and distribution processes: inventory of final products can help to minimize the effects of unexpected production problems.

C. To ensure that item cost is maximized: A company can buy a bulk of raw material since the cost of a large number of units is lower. So the final product's cost will be maximized.

D. to tightly synchronize a​ firm's production with its​ customers' demand: for example in a seasonal demand, There are certain months when the demand exceeds the production capacity. In theis case, in the lower season months, the company will be increasing the inventory in order to meet the demand when the high season comes.

6 0
3 years ago
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