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
Beginning inventory for the month contained 3,000 units that were 35% complete with respect to materials. 57,000 units were comp
notka56 [123]

Answer: 57,550 units

Explanation:

When using the weighted average method, the units completed and transferred out are assumed to include the opening inventory.

The weighted average equivalent units are therefore:

= Units completed and transferred out + Equivalent ending units

= 57,000 + (10% * 5,500)

= 57,000 + 550

= 57,550 units

6 0
3 years ago
A reliable source in your industry has informed you that some of your more aggressive competitors are planning to formulate agre
Rom4ik [11]
Black mail just dont fire them either blackmail them or make them sign a contract
7 0
3 years ago
Of fifo or lifo, which method would produce the more favorable cash flow? fifo, because of it produces lower income tax expense
quester [9]
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
4 0
3 years ago
When can interest be included in the acquisition cost of a plant asset?
hammer [34]

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

7 0
3 years ago
An auto manufacturer is considering adding new automation to their assembly line to reduce production costs. The manufacturer is
QveST [7]

Answer:

Check the explanation

Explanation:

As per the beta distribution, the average revenue per year = (Pessimistic +4*Most Likely +Optimistic) / 6

Avg revenue per year = (460000 + 4*660000 + 840000) / 6 = 656666.67

MARR = 12%, life = 9 yrs

NPW = -4000000 + 656666.67 * (P/A,12%,9) + 40000 * (P/F,12%,9)

= -4000000 + 656666.67 * 5.32824 + 40000 * 0.36061

= 7498877.6+14424.4

= -433415.60

= -433000 (nearest 1000)

7 0
3 years ago
Read 2 more answers
Other questions:
  • Metlock Company took a physical inventory on December 31 and determined that goods costing $185,000 were on hand. Not included i
    15·1 answer
  • On October 17, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $435,000 while the
    11·1 answer
  • Recommend four aspects you would include when preparing a flyer
    13·2 answers
  • Describe at least three other investments you want to make with your income either now or someday in the future. Explain why you
    15·2 answers
  • Consider three different closed economies with the following national income statistics. Country A has taxes of $40 billion, tra
    8·1 answer
  • Dirk required surgery for a kidney impairment. His total bill for medical services was $50,000. Dirk has a medical expense polic
    5·1 answer
  • Type the correct answer in the box. Spell all words correctly. Which view in a presentation program displays your slides in full
    15·2 answers
  • Closing entries and a post-closing trial balance are steps in the accounting cycle that occur
    5·1 answer
  • ______ management refers to the activities related to planning for, attracting, developing and retaining an effective workforce.
    14·2 answers
  • A perfectly competitive apple farm produces 1,000 bushels of apples at a total cost of $36,000. The price of each bushel is $50.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!