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3 years ago

Which of the following actions would be most likely to reduce potential conflicts between stockholders and bondholders?

Business

1 answer:

bagirrra123 [75]3 years ago

5 0

Answer:

C. Including restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).

Explanation:

One of the major actions that would most likely reduce potential conflicts between stockholders and bondholder is the Inclusion of restrictive covenants in the company's bond indenture (which is the contract between the company and its bondholders).

Restrictive covenants are Bond covenants that are designed to protect the interests of both parties by forbiding the issuer from undertaking certain activities that are detrimental to the holders of the bond.

Restrictive covenants manages the agency problem between stockholders and bondholder.

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Which description is correct about a tool used by organizations to verify whether or not a staff member has been involved in mal

patriot [66]

Answer:

Mandatory vacations

Explanation:

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3 years ago

Match each scenario with its effect on the PPC.

NARA [144]

- A manufacturing unit uses all its resources efficiently. A point on the original PPC

- Andrew has 5 hours to complete his homework but uses only 3 hours, so he doesn’t complete it. The PPC shifts to the left

- A country acquires part of its neighboring country. The PPC shifts to the right

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3 years ago

In part, a transaction affects the accounting equation by decreasing an asset. There is no effect on liabilities. Which of the f

Simora [160]

Answer:

If other assets are unchanged, stockholders' equity must be decreasing.

Explanation:

By using Accounting Equation as follow:

Asset = Equity + Liability

Tot make the equation balance we have to ensure that the effect on it will also has balancing effect.

Decrease in assets might result in decrease in equity or liability and increase in other assets, but here the liability is constant. There could be only two effect that decrease in equity and increase in other asset. There is no option which shows the increase in other asset. So the decrease in equity is the option will has correct effect to balance the accounting equation all other dis-balance the equation.

6 0

3 years ago

During its first year of operations, Silverman Company paid $7,000 for direct materials and $9,500 for production workers' wages

r-ruslan [8.4K]

Answer:

Closing Inventory would be standing at $10000

Explanation:

The cost that forms part of the cost of inventory are all those production costs that are necessary to convert it into finished goods which in this case is:

Production cost = All direct costs are production costs

And

All Direct Cost = $7000 Direct Mat + $9500 Production Workers Wages + $8500 Direct Utilities bills = $25000

And the production cost incurred was for 5000 units which means the unit production cost was $5 ($25000 / 5000 units).

So closing inventory value would be = 2000 closing inventory units * $5

= $10000

5 0

3 years ago

Read 2 more answers

Trusper Company was organized on January 1, Year 1 and has had 1,000 shares of $200 par value, 10% cumulative preferred stock ou

Masja [62]

Answer:

Trusper Company

The total amount of dividends that will be paid to common stockholders during Year 2 is:

$40,000.

Explanation:

a) Data and Calculations:

10% cumulative preferred stock = $200,000 ($200 * 1,000)

Common stock = $3,000 (3,000 * $1)

Dividends in Year 1 for cumulative preferred stockholders = $20,000 ($200,000 * 10%)

Dividends outstanding after Year 1 for cumulative preferred stockholders = $15,000 ($20,000 - $5,000)

Dividends for Year 2 for cumulative preferred stockholders = $35,000 ($20,000 + $15,000).

Total dividend paid to common stockholders during Year 2 = $40,000 ($75,000 - $35,000)

b) The unpaid cumulative preferred stock dividend of $15,000 for Year 1 will be added to the dividend of the Year 2. The common stockholders are not paid any dividends in Year 1. But in Year 2, they will get $40,000 after the cumulative preferred stock dividends are paid.

3 0

2 years ago