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hram777 [196]
3 years ago
13

A corporation has outstanding $5,000,000 of 9 1/2% 20-year debentures, with a conversion price of $40. If all the debentures wer

e converted, how many shares of common stock would be issued?
Business
1 answer:
Fiesta28 [93]3 years ago
8 0

Answer:

The 125,000 shares of common stock would be issued

Explanation:

For computing how many shares of common stock would be issued, we have to use the formula of common share produced which is shown below:

Common share produced = Par value ÷ Conversion price

where,

Par value is $5,000,000

And, the conversion is $40

Now, apply these values to the above formula

So, the value would be equals to

= $5,000,000 ÷ $40

= 125,000

The time period and rate of debentures is irrelevant, Thus, it is ignored.

Hence, the 125,000 shares of common stock would be issued.

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Answer:

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If the company in this scenario have competitive advantage in producing electronics then it is xheap for them to produce.

When they export electronics and import again, it can only mean that the imported electronics have a competitive edge that the company wants to take advantage of. For example higher quality than what is available locally.

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I have included a simple graph to illustrate.

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Betty Brown is currently developing a mission statement for her boutique. In what stage of growth is Betty's business?
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They often need heavy investments to finance their zoom. The market rate varies from industry to industry but usually shows a cut-off point of 10% – growth rates more than 10% are considered high, while growth rates below 10% are considered low.

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Growth-share business matrix may be a business tool, which uses relative market share and industry rate of growth factors to guage the potential of business brand portfolio and suggest further investment strategies.

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Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon i
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Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is consistent with the efficient markets hypothesis if the earning were not as high as anticipated

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The efficient market hypothesis is a hypothesis in financial economics that states that asset prices reflect all available information. A direct consequence of this is that it is impossible to "beat" the market consistently on a risk-adjusted basis, as market prices should only respond to new information.

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