Answer:
d. The distribution gives preferred stock to some common stock shareholders and common stock to other common stock shareholders.
Explanation:
This is likely the answer to the question. There is no way preferred stock would be given to some common stock shareholders while common stock to other stock to others.
Answer:
A)If interest rates decline, the prices of both bonds will increase, but the 15-year bond would have a larger percentage increase in price.
TRUE
As it has more time to maturity it will have a higher time expose to the rate therefore, will be more volatile against the rate fluctuations
Explanation:
The 10-year ond is issued at premium, above par as the coupon rate 12% is higher than market rate 10%. Each year will decrease the market value to come closer to maturity date.
The 15-year ond is issued at discount, below par as the coupon rate 8% is lower than market rate 10%. Each year will increase the market value to come closer to maturity date.
Answer:
Order processing= $930 per order
Explanation:
<u>First, we need to calculate the estimated costs for order processing:</u>
Order processing cost= (380,000*0.3) + (150,000*0.45) + (170,000*0.3)
Order processing cost=$232,500
<u>Now, we can calculate the activity rate:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Order processing= 232,500 / 250
Order processing= $930 per order
