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Nana76 [90]
3 years ago
13

The common stock of Southern Airlines currently sells for $33, and its 8% convertible debentures (issued at par, or $1,000) sell

for $850. Each debenture can be converted into 25 shares of common stock at any time before 2025. What is the conversion value of the bond?
Business
1 answer:
JulijaS [17]3 years ago
6 0

Answer: $825

Explanation:

Convertible bonds or debentures can be converted into stock in a company by the holders.

The Conversion Value of the bond is given by;

Conversion Value of the Bond = Stock Price * Conversion Ratio

Conversion Ratio = 25 shares for one debenture.

= 25/1

= 25

Conversion Value of the Bond = Stock Price * Conversion Ratio

= 33 * 25

= $825

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At a quantity of 130, marginal benefit equals ______ and marginal cost equals _____.
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Answer:

$1.60, $0.50

Explanation:

At a quantity of 130, marginal benefit equals $1.60 and marginal cost equals

$0.50.

marginal cost means incremental cost or cost in production of every additional unit it is measured by change in total cost divided by change in number of quantity.

likewise, marginal benefit amount consumer pay on buying additional unit. it is calculated by multiplying quantity with price of that unit.

8 0
3 years ago
Ruth gives Seth a computer as a gift. Using the computer, Seth develops a new game, for which he obtains intellectual property p
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Answer:

production

Explanation:

Based on the information provided within the question it can be said that Seth's acquisition of the game is by production. This is the process of completely creating from scratch the idea that leads to the product. Which is what Seth did since he developed the game from zero. Using the computer that was gifted to him as a tool.

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3 years ago
What is the meaning of market testing?
swat32

Answer:

The correct option is;

B. Performing a premarket test before venturing into full-scale production

Explanation:

Market testing is the process of appraising the different scenarios and arrangements that can be encountered and the selection of the most appropriate arrangement that is most favorable for expansion

Market testing involves trials made to answer the following questions;

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The best form of advertising

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Other market reactions to product launch

5 0
3 years ago
Read 2 more answers
"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous
kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

6 0
3 years ago
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myrzilka [38]
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B. Arriving with snacks doesn’t get you anywhere.

C. Arriving late isn’t even up for debate.

D. A day off is a day off for a reason, go home pal.
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