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wlad13 [49]
3 years ago
12

On March 1, 2018, E Corp. issued $1,400,000 of 8% nonconvertible bonds at 101, due on February 28, 2028. Each $1,000 bond was is

sued with 50 detachable stock warrants, each of which entitled the holder to purchase, for $65, one share of Evan's $45 par common stock. On March 1, 2018, the market price of each warrant was $3. By what amount should the bond issue proceeds increase shareholders' equity?
Business
1 answer:
zavuch27 [327]3 years ago
6 0

Answer:

$210,000

Explanation:

No market value was been given for the bonds.

Therefore the amount attributable to the warrants (shareholders' equity) =

Market price of each warrant was $3 ×50 detachable stock warrants per bond

=$150

Issued $1,400,000/$1,000 bond

=$1,400

Hence:

$150 × 1,400 bonds

= $210,000.

Therefore the amount that the bond should issue if proceeds increase shareholders' equity is $210,000

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Write the sum as a product of two factors 25g + 10f + 5​
ANEK [815]

Answer:

5\times(5g+2f+1)

Explanation:

25g+10f+5

Writing each term in its factors:

(5\times5)g+(5\times2)f+5

We find out that 5 is the GCF of all the terms

Factoring out 5 from the given expression.

5\times(5g+2f+1)

Factors: 5 and (5g+2f+1)

Thus:

25g+10f+5 = 5\times(5g+2f+1)

4 0
3 years ago
Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Buzz. Labor costs wil
harina [27]

Answer:

433 units

Explanation:

Information related to production costs are missing, so I looked for it. I found the following:

current sales price = $17

current fixed costs = $7,242

new labor costs per unit = $2.60, which results in a $0.50 increase

new direct materials cost per unit = $5.82, which results in a $1 decrease

total variable costs per unit = $8.42

Baldwin plans to pass 50% of the changes in costs to its customers:

  • Increase $0.25 due to higher labor costs
  • decrease $0.50 due to lower materials costs
  • net change = -$0.25

new sales price = $17 - $0.25 = $16.75

contribution margin per unit = $16.75 - $8.42 = $8.33

break even point in units = total fixed costs / contribution margin per unit = $7,242 / $16.75 = 432.36 = 433 units

3 0
4 years ago
An 85-year old retired client has living expenses of $15,000 per year. His portfolio is currently allocated: 50% Money Market Fu
Slav-nsk [51]

Answer:

Explanation:

The best recommendation in this scenario would be to liquidate half of the money market fund and invest it in 5 year corporate debentures yielding 2.70%. This is because traditionally money market funds, although highly liquid, only offer an average of 1% return on investment for the capital invested. Investing instead in a corporate debentures yielding would net the individual more than double in ROI and hopefully cover all of the living expenses.

3 0
3 years ago
Faisal has $ 15 comma 000 in his savings account and can save an additional $ 4 comma 500 per year. If interest rates are​ 12%,
Vaselesa [24]

Answer:

It will take 4 years 6 months.

Explanation:

Required here is the period, n for an investment to grow to $50,000 and this is calculated as follows :

Pv = - $15,000

Pmt = - $4,500

P/yr = 1

r = 12 %

Fv = $50,000

n = ?

Using a Financial Calculator, the period, n for an investment to grow to $50,000 is 4.50 or 4 years 6 months.

3 0
4 years ago
In 2018, Glumland's planned investment was $100 billion and its actual investment was $140 billion. In 2018, Glumland's unplanne
nekit [7.7K]

Answer:

The correct answer is (A)

Explanation:

Glumland's planned investment was $100billion before they started the business. During the period, the investment increased from $100billion to $140 billion. So, the difference between planned and actual investment is;

$140 b - $ 100b = $40 b

The difference is $40 billion, which is also the unplanned inventory because unplanned inventory is the difference between planned and actual cost or investment.

4 0
3 years ago
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