1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mixer [17]
3 years ago
15

Supreme Industries issues the following announcement to holders of an issue of​ callable, convertible​ notes: ​"Prior to the clo

se of business on May​ 17, 2008, holders may convert their Notes into shares of Supreme Industries common stock at 29.45 shares of Supreme Industries common stock per​ $1000 principal amount of the Notes. Cash will be paid in lieu of fractional shares. On April​ 16, 2008, the last reported sale price of Supreme Industries common stock on the NYSE was $ 22.60 per​ share." If on May​ 17, Supreme Industries is trading as $ 24.30​, what is the value of common stock a holder of a​ $1,000 note would​ receive?
Business
1 answer:
777dan777 [17]3 years ago
4 0

Answer:

The value received by holder of $1,000 is $831.8

Explanation:

$1000 notes will get 33.95 shares which says 33 shares and teh cash equal to the 0.95 shares value. The convertible Bonds (CB) are converted at the will of holders into the shares or cash. The conversion price is the trading price of the share which is $24.20. Thus, a hoder of $1,000 will receive the following value:-

1) 33 shares at 24.50 which is equal to :-

 =33\times 24.50=808.5

2) The cash which is equal to 0.95 share. 1 share is valued at $24.50 thus 0.95 share will be valued at:-

 \frac{24.5}{1}\times 0.95=23.3

Thus total value of the common stock will be :

808.5+23.3=831.8

Thus, the value received by holder of $1,000 is $831.8

You might be interested in
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,200 of federal in
iragen [17]

Answer:

Tax Due by Jeremy is $218

Explanation:

Step 1: Calculate Jeremy's total Income

$100,000 (Salary) + $6,000 (Interest Income) + $4,000 (long term capital gain)=  $110,000

Jeremy's exclusion at this point is 0.

Therefore, Jeremy's Gross income = $110,000, This is also Jeremy's Adjusted Gross Income (AGI).

Step 2: Calculate Taxable Income after deductions.

AGI= $110,000

Deductions from AGI= $23,000 (The greater of standard or itemized deduction).

Qualified Business Income Deductions (QBI)= $0 (Jeremy did not declare any personal business).

Taxable Income= AGI-Deductions- QBI Deductions

= $110,000-$23,000-0

= $87,000

Step 3: Calculate Jeremy's Tax Liability as follows:

Capital Gain is included as part of Gross Income, therefore finding the tax liability will necesitate that the capital gain be deducted and only the taxable percentage be added back.

Jeremy's tax liability = (87,000-4,000) + (4,000 x 0.15)

= ($83,000 x 15.4%) + 600

=$12,818 + 600

=$13,418

Jeremy's total tax Liability= $13,418 - $0 (non refundable tax credit) + 0 (other taxes)

Jeremy's total tax liability = $13,418

The total tax payment made by Jeremy

=(2,000 + 11,200)= $13,200

Therefore the tax due by Jeremy is Total Tax Liability - Tax Payment mande

= $13,418 - $13,200

= $218

7 0
3 years ago
The relationship between the future value of a single sum and the corresponding present value of a single sum is determined by t
Schach [20]

Answer:

D

Explanation:

interest rate per compounding period​ ; number of compounding periods

5 0
2 years ago
Barney has a balance of $780 on a credit card with an APR of 31.3%, compounded monthly. About how much will he save in interest
BlackZzzverrR [31]

$119.66 is the answer for apex

8 0
3 years ago
Read 2 more answers
What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize this
kvv77 [185]

Answer:

The legislature budget board and the governor are authorize to transfer money from one agency to other.

Explanation:

Given:

Money needs to be transferred from 1 agency to other when legislature is not in session:

Solution:

When Legislature is not in session, the legislature budget board and the governor are authorize to transfer the money from one agency to other during emergencies.

3 0
3 years ago
Fire insurance policies include deductibles:
stiv31 [10]
1. A im not to sure for this one.... :/ 
2. A  Signaling ; reputation 
5 0
3 years ago
Other questions:
  • Fishing Adventures rents small fishing boats to tourists for day­long fishing trips. Each boat can only carry 1500 pounds of peo
    15·1 answer
  • What is negotiation? A. A discussion in which a sales person demonstrates features of a product B. A discussion in which people
    11·1 answer
  • The following data are for the two products produced by Tadros Company.Product A Product BDirect materials $15 per unit $24 per
    8·1 answer
  • Age Group Amount Estimated Percent Uncollectible Estimated Allowance 0–30 days $ 420,000 2 % $ 8,400 31–60 days 140,000 5 % 7,00
    7·1 answer
  • A ____ is a document sent with your résumé to provide additional information on your skills and experience. It provides detailed
    15·2 answers
  • Chris bought a home for $225,000, putting down 20%. The mortgage is at 6 1/2% for 30 years. Determine his monthly payment
    5·1 answer
  • Suppose the production of a particular good causes a negative externality. Based on market forces​ only, how will this impact th
    9·1 answer
  • If the Fed increases ​ior enough, such that it will raise the intersection point with the vertical portion of reserve​supply, th
    15·1 answer
  • The forces that affect foreign markets may differ dramatically from those affecting domestic markets. This makes a careful------
    12·1 answer
  • Appalachian Ski Shop signs a three-month note payable to help finance increases in inventory for the winter ski season. The note
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!