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Arturiano [62]
3 years ago
14

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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3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Andru [333]

Complete Question:

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a.  Checks outstanding totaled $19,427.

b.  A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.

c.  The bank collected $26,500 on a $25,000 note, including interest of $1,500.

d.  A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.

e.  A check drawn for $195 had been erroneously charged by the bank as $915.

f.  Bank service charges for June amounted to $55.

Answer:

Pala Medical Co.

Cash amount in the balance sheet = $189,281

Explanation:

a) Calculations:

Adjusted Cash balance at June 30, 20Y1

Cash balance                      $166,436

c) Note received by bank      25,000

c) Interest on the note             1,500

d) Returned check                 (3,600)

e) Bank charges                         (55)

Adjusted cash balance     $189,281

b) Balance as per bank statement = $195,688

a.  Checks outstanding totaled           ($19,427)

b.  A deposit of                                     $12,300

e. Overstated cheque                               720

Adjusted bank statement balance   $189,281

c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance.  After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.

4 0
3 years ago
Chris Taylor: Attempt 1
arsen [322]

Be reasonable

Explanation:

Be reasonable where u use logic and strong motives which consequently improves your way of thinking

I hope that I answered u

6 0
3 years ago
A $200,000 loan amortized over 13 years at an interest rate of 10% per year requires payments of $21,215.85 to completely remove
kvasek [131]

Answer:

Loan amount = $184,193.95

Explanation:

Interest will remain same each year. Interest per year = 200,000*10% = $20,000

Installment                   $21,215.85

Less: Interest               <u>$20,000</u>

Payment to Principal <u>$1,215.85</u>

Total principal repaid in 13 years = $1,215.85 * 13 years = $15,806.05

So, the principal left = $200,000 - $15,806.05 = $184,193.95

3 0
2 years ago
A firm currently produces 3,500 units of output per week. After an additional worker is hired, output rises to 3,750 units per w
MrRissso [65]

Answer:

C. $2

Explanation:

The marginal cost is the cost for producing an additional unit of the product. According to this and as the statement says that with the additional worker the output rises to 3,750, teh first thing is to find the number of additional units that were produced:

3,750-3500= 250

With the new worker, the firm produces an additional 250 units that cost $500 because this is the salary of the new worker and to calculate the cost of one additional unit you have to do the following:

250 units ⇒ $500

     1 unit  ⇒      x

x=( 1*500)/250= 2

The firm's short-run marginal cost is $2.

4 0
3 years ago
The last stage in sales is<br> Conviction<br> Action<br> Desire<br> Interest
Ksivusya [100]
Answer will be ‘Desire’ according to me.
5 0
3 years ago
Read 2 more answers
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