All categories

3 years ago

Bonds that may be exchanged for common stock at the option of the bondholders are called

Business

1 answer:

Sedaia [141]3 years ago

4 0

Answer: CONVERTIBLE BONDS

Explanation: In simple words, convertible bonds refers to those fixed assets securities that could be converted into common stock on the discretion of the bondholders.

Such kind of securities is usually used by companies who are new to the market and wants to attract investors with maximum security of bonds as initial investment and maximum potential benefit as an option of converting bonds into common stock.

These types of bonds offer lower interest rates due to the embedded option of conversion.

You might be interested in

Russell Inc. had sales of $2,300,000 for the first quarter of 2017. In making the sales, the company incurred the following cost

TEA [102]

Answer:

$527,000

Explanation:

Preparation of a CVP income statement for the quarter ended March 31, 2017.

Russell Inc.income statement for the quarter ended March 31, 2017.

Sales $2,300,000

VARIABLE EXPENSES

Cost of goods sold $940,000

Selling expenses 74,000

Administrative expenses 96,000

Total Variable Expenses 1,110,000

Contribution Margin 1,190,000

($2,300,000-$1,110,000)

FIXED EXPENSES

Cost of goods sold $464,000

Selling expenses 54,000

Administrative expenses 145,000

Total Fixed Expenses 663,000

Net Income/(Loss) $527,000

(1,190,000-663,000)

4 0

3 years ago

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c

guapka [62]

Answer:

a) 500F and 3,000U

the company use a cheaper material thus, favorable price variance.

But this material had lower quality thus, negative quantity variance

b) 4,000U 2,100U

There was overtime thus, making labor rate higher and productivity as the shift are longer, decrease.

It could also be a combination between wrong directives from the supervisor or defective equipment

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $ 1.50

actual cost $ 1.48

quantity 25,000 (amount purchased)

difference $0.02

price variance $500.00

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 18000 (3,000 toys produced x 6 per toy)

actual quantity 20000 (25,000 - 5,000 ending inventory)

std cost $1.50

difference -2000.00

quantity variance $(3,000.00)

DIRECT LABOR VARIANCES

$(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance$

std rate $21.00

actual rate $22.00 (88,000 labor cost / 4,000 direct labor hours)

actual hours 4,000

difference $(1.00)

rate variance $(4,000.00)

$(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance$

std hours 3900.00 (3,000 toys x 1.3 hours per toy)

actual hours 4000.00

std rate $21.00

difference -100.00

efficiency variance $(2,100.00)

5 0

3 years ago

Devon had a starting balance of $54.00 in his savings passbook. He made these transactions: deposits of $54.87 and $86.35; withd

Zielflug [23.3K]

Answer:

$125.22

Explanation:

5 0

3 years ago

Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuanc

yawa3891 [41]

Answer and Explanation:

As per the data given in the question,

3 of the above items will appear as a cash inflow from investing activities.

These are as follows :

1. Collection of loan receivable.

2. Cash sale of delivery truck at book value.

3. Sale of a security held as an available-for-sale investment.

Any gain or loss on sale of long term asset is an operating activity although any purchase or sale of a long term asset is come under the investing activities.

Loan receivable is an asset too therefore, it will be shown under investing activities.

4 0

3 years ago

This occurs when a government spends more money than it takes in.

BARSIC [14]

This is called deficit

8 0

3 years ago