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sergeinik [125]
2 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]2 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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The loan review department at a major regional bank has an exceptionally high turnover of both administrative assistants and ana
Ray Of Light [21]

Answer:

Letter B is correct. <em>Organizational.</em>

Explanation:

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It can be caused by situations related to organizational structure, such as failures in the selection process, unfavorable organizational climate that causes conflicts and demotivation, low benefits and compensation among others.

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1. During pre-planning, the Activities Committee establishes the following project goal: "Optimus XT will promote and organize a
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New Age Electronics expects to earn $100,000 this year. Earnings will grow 3% indefinitely if the firm makes no new investments.
vampirchik [111]

Answer:

5.7 1

Explanation:

Given:

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=> Current price:

P = D1 / (r-g)

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So the price per share of stock is  5.7 1

Hope it will find you well  

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5 0
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For my business Beauty Essentials would writing personalized thank you cards be better for each customer or should I just write
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