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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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A sale transaction on rental property closes on December 10th. The landlord received the December rent of $4,400 on December 1.

viva [34]

Answer:

$2,933.40

Explanation:

For computing the owed amount, first we have to compute the daily rate per day which is shown below:

= Rent received ÷ number of days in a month

= $4,400 ÷ 30 days

= 146.67 per day

We know that the number of days in a month is 30 days and the landlord received a rent on December 10, so the remaining days would be 20 days ( 30 days - 10 days of march month)

Now the owed amount would be

= Remaining days × per day rate

= 20 days × 146.67

= $2,933.40

7 0

3 years ago

Delivery Service purchased a commercial umbrella policy with a $10 million liability limit and a $100,000 self-insured retention

Margaret [11]

Answer:

Business umbrella approach gives inclusion to the firm against those misfortunes that may bankrupt the firm. The arrangement covers a definitive misfortune in abundance of held breaking point happens because of real injury, property harm, promoting and individual injury. A definitive misfortune is the lawful risk to which back up plan is committed to pay. As far as possible is the accessible furthest reaches of the fundamental protection. According to the umbrella arrangement, the protected needs to keep up some base measure of obligation before the case is paid by the umbrella strategy. In the event that the guaranteed is secured under some other strategy, at that point first that sum is paid and remaining sum is paid by umbrella approach in the wake of fulfilling oneself safeguarded maintenance.

The complete loss to the organization is $5 million, at that point $1 million will be paid by general obligation strategy and $1 million will be paid by business auto approach. Out of the remaining $3 million, self-safeguarded limit is $100,000 which demonstrates that $2.9 million ($3 million less 5100,000) will be paid by umbrella arrangement.

3 0

3 years ago

Suppose lawyers seek legislation to limit the use of computer software that enables people to use their personal computers to se

Harman [31]

Answer:

c. rent-seeking behavior

Explanation:

In economics, rent-seeking behavior can be described as a behavior or conduct that tries to increase the share of an economic agent or an entity from the existing wealth without adding or creating new wealth. This implies that the entity aims to obtain added wealth without creating a new one.

From the question, the aim of the lawyers is mainly to increase their own wealth in terms of legal fees they will collect from preparing wills, trusts, and other legal documents when they prepare them for people when a law restrict people from self-preparing it using their personal computers. In turn, the lawyers will only increase their share of wealth without adding any wealth.

Therefore, this is an example of rent-seeking behavior.

6 0

3 years ago

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu

SCORPION-xisa [38]

Answer:

$57,400

Explanation:

The computation of the estimated total manufacturing overhead for the Customizing Department is shown below:

= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour

= $35,000 + 7,000 direct labor hours × $3.20

= $35,000 + $22,400

= $57,400

All other information that is given in the question is ignored.

7 0

4 years ago

Compute ending work in process inventory for a manufacturer with the following information. Raw materials purchased $ 124,800 Di

aalyn [17]

Answer:

Ending WIP = 29,700

Explanation:

$Beginning \: WIP+ Cost \: added= Ending \: WIP + COGM$

Beginning WIP 26,500

Direct Materials used 74,300

Direct Labor used 55,000

Factory Overhead 95,700

Cost added during the period 225,000

Cost of Goods manufactured 221,800

$Beginning \: WIP+ Cost \: added= Ending \: WIP + COGM$

26,500 + 225,000 = Ending WIP + 221,800

26,500 + 225,000 - 221,800= Ending WIP

Ending WIP = 29,700

We need the materials used in production, the purchases is not the value we need, it is irrelevant.

3 0

3 years ago