Answer:
a. $880.74
b. 13 years
Explanation:
a. Conversion ratio = Current Value of bond / Conversion price = 1,000 / 93.4 = 10.71
Conversion price of bond = 10.71 × 28.60 = $306.31
Coupon = Par value of bond * Coupon rate = $1,000 * 6.4% = $64
Present value of straight debt is calculated below:
Present Value = $64 × [1-(1+7.4%)^-30 / 7.4%] + [$1,000 / (1+7.4%)^30]
= $64*11.93 + $117.46
= $763.28 + $117.46
= $880.74
.
Therefore, the minimum value of bond is $880.74
b. Conversion ratio = 10.71
Current stock price = $28.6
Suppose number of year the stock will take to reach above $1,140 is t.
Conversion value = Current stock price * Conversion ratio*(1+10.8%)^t
$1,140 = $28.6 * 10.71 * (1.108)^t
(1.108)^t = 3.7218
t = 12.8145 year.
t = 13 years
Answer:
c. The firms reach the monopoly outcome.
Explanation:
The oligopoly is a market structure with a small number of competitors that have all of most if not all of the sales in an industry. According to Nash theory, the equilibrium is reached when each competitor is doing the best it can given what its competitors are doing and have no incentive to deviate (acting all together as a monopoly).
Answer:
(D) global information
Explanation:
A global information system is an information system which is used in a global context. and deliver the totality of measurable data worldwide within a defined context.
Examples
Systems developed for multinational users, SAP, Oracle ,JDE, are a global ERP system
Global Information Systems for Education
Answer:
Number common stock shares issued will be 5000
So option (C) will be correct answer.
Explanation:
We have given amount = $60000
Common stock par value = $10
Number of share issued 
Treasury stock = 1000 shares
We have to find the number common stock shares issued.
Shares of common stock outstanding = number of shares issued - treasury issued = 6000-1000 = 5000 shares
So option (C) will be correct answer
Answer:
The correct answer is letter "C": the marginal cost and marginal benefit of the policies.
Explanation:
The Economic Perspective is a concept that involves making decisions based on the marginal costs and benefits they could carry. Those decisions must be taken because of the basic economic problem of scarcity by which people have unlimited desires but only finite sources to fulfill them.
