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Svet_ta [14]
3 years ago
13

Which of the following is NOT considered a convertible instrument and is indicative of a complex capital structure? a. convertib

le bonds b. stock options c. warrants d. stock dividend e. None of the answer choices are correct.
Business
1 answer:
AfilCa [17]3 years ago
6 0

Answer:

e. None of the answer choices are correct.

Explanation:

A capital structure that comprises of those securities which can dilute it's earnings per share to common stockholders, is termed as complex capital structure.

Convertible bonds grant the owners, the right to convert their bonds into stocks, which leads to a dilutive effect on earnings per share for common stock holders.

Similarly, stock options grants a right to employees to purchase company's stock at a rate lower than the market price. This again is dilutive in nature.

Warrants are just like call options but when those are exercised create a dilution effect on the earnings per share of the company. Here the holder gets an option to buy new shares at an exercise price at a future date.

Stock dividends refer to paying common stock holders in the form of additional stock issue rather than paying them cash dividend.  Those dilute the stock's price.

Thus, all four lead to a complex capital structure.

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A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs p
sasho [114]

Answer:

The answer is cost accounting system.

Explanation:

Cost accounting is a tool that allows you to estimate the actual price of the products, which allows you to establish a profit margin for each unit sold. Depending on the activity of the company, several techniques are used such as production costing, process costing, standard costing, absorption costing, etc.

5 0
3 years ago
On September 1, 2021, Southwest Airlines borrows $40.1 million, of which $8.2 million is due next year. Show how Southwest Airli
Zepler [3.9K]

Answer and Explanation:

The Preparation of balance sheet is shown below:-

                                       Balance Sheet

Current liability

Long term debt of Current portion $40,100,000

Long term liability

Notes payable                                $31,900,000

($40,100,000 - $8,200,000)

Total liabilities                                      $72,000,000

So, to reach the total liabilities we simply add the long term debt of current portion with notes payable.

5 0
3 years ago
Downtown! is a rapidly growing web-based retailer with about 100 management and technical support employees at its headquarters
ivanzaharov [21]
Where did the answer go after I signed up?  I sign up and the answer disapperas?
5 0
3 years ago
Read 2 more answers
In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20
alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

         Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

         Inventory Cr $9.4m

8 0
3 years ago
The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1 year zero coupon bond is 3%. What does the no-arbitrage condition
tresset_1 [31]

Answer:

<em>$111.11 or 111.11% of face value</em>

Explanation:

Assuming the face value of $100 for all bonds (without loss of generality)

If the two year coupon bond is repackaged as a one year zero coupon bond paying $12 after one year and another two year bond paying $112 after 2 years, the price of the two zero coupon bonds are given as

Price of one year Zero coupon bond = 12/1.05 = $11.43 (one year ZCB has YTM of 5%)

Price of two year Zero coupon bond = 112/1.06^2 = $99.68 (two year ZCB has YTM of 6%)

So, one can sell the repackaged bonds at a price = $11.43+ $99.68 = $111.11 or 111.11% of face value

7 0
3 years ago
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