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Luba_88 [7]
3 years ago
8

Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio

n's bonds are publicly traded and the prevailing market price indicates that Dyckman's investment is worth 20,000. However, Dyckman management believes that the bond market is generally overvalued, and their analysis of the Thomas investment suggests to them that it is worth $18,000. Dyckman should carry the Thomas investment on its balance sheet at:_____.
A) $20,000.
B) $18,000.
C) Either $18,000 or $20,000, as either are defensible valuations.
D) $19,000, the midpoint of Dyckman's range of reasonably likely valuations of Thomas.
Business
1 answer:
faust18 [17]3 years ago
3 0

Answer: $20,000

Explanation:

Bonds are to be carried in the books at their fair value which is their market value. That value is $20,000 in this instance and so Dyckman Dealers will have to record the bonds at that $20,000 value.

Investment analysis are not a basis for recording bond prices. They are simply a basis for making investment decisions. For instance, because they believe that the bond is overvalued, they can benefit from this by short selling the bond and waiting for it to drop in price.

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All of the following are reasons for a company to repurchase its previously issued stock, except:
gladu [14]

Answer:

The correct answer is option d. to increase the shares outstanding.

Explanation:

A company can repurchase its previously purchased stocks to resell to the employees, for bonuses to employees and to even support the market price of the stock.

But the company certainly will not repurchase its previously purchased stocks  to increase the shares outstanding.

I hope the answer is helpful.

Thanks for asking.

4 0
3 years ago
If you case a car accident, which type of insurance will require you to pay the least out of pocket?
maria [59]
Uninsured motorists. Make sure you have it.
7 0
3 years ago
The classic quote from the movie Field of Dreams, "If you build (produce] it
-BARSIC- [3]

The correct answer is A. Say's Law

Explanation:

Say's Law proposed by the economist Jean-Baptiste Say establishes the supply (availability of a product) or the production itself is the factor that creates demand (customers willing to buy the product). For example, the production of a new model of cellphone or computer makes people want to buy the new model. This idea is expressed by the quote "If you build (produce] it  they will come [purchase]" because in the quote it is explained the production of something make people go to buy that product.

6 0
3 years ago
Suppose you are interested in studying whether scent affects spatial reasoning abilities. You decide to test spatial reasoning u
Brilliant_brown [7]

Answer: 1. c. There are no differences in the mean completion times among the scents compared

2. Scent; Completion Time

Explanation:

The Null Hypothesis of a research is that hypothesis which you aim to disprove because it holds that no significant relationship between the variables being researched exists.

In this scenario you are studying whether scent affects spatial reasoning abilities.

The Null Hypothesis will.be that which states that there is no relationship between scent and spartial reasoning therefore there will be no differences in the mean completion times among the scents compared.

The factor of interest is the variable that is being changed to examine a difference making it the SCENT in this scenario.

The dependent variable changes due to the Factor of Interest so it is the COMPLETION TIME.

6 0
4 years ago
A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to
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Answer:

Part a. Manufacturing the goods at home and let overseas sales managers handle the marketing.

Advantages  

  1. Can have a full authority in production activities.
  2. It is easy to set up a strategy and multiply the manufacturing.
  3. Having better regulator over human resources.
  4. The foreign sales agents will enhanced the understanding of European marketplaces.
  5. It lower the exit costs if product fails.

Disadvantages

  1. Having lack of information in European pharmaceutical procedures.
  2. The foreign agents may damage the brand name if not prudently handled.
  3. Additional costs in delivery of the products.

Part b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.

Advantages

  1. Having full control in manufacturing activities.
  2. It is easy to set up a strategy and multiply the manufacturing.  
  3. Having better regulator over human resources.
  4. The brand name will not be damaged since the marketing is controlled by the same company

Disadvantages

  1. Utilization of extra resources to be consumed on marketing
  2. Having lack of information in European pharmaceutical procedures.
  3. Additional costs in delivery of the products  
  4. Having lack of information in European pharmaceutical procedures  

Part c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm

Advantages

  1. The risk is distributed among the firms.
  2. No additional delivery cost included.
  3. Knowledge of European organization will be valuable in
  4. understanding guidelines and advertising in European markets.

Disadvantages

  1. Having less control in manufacturing activities  
  2. Shared of the profit among the partners.
  3. Moderate level of exit cost is included.
  4. Additional firm may harm the brand image.

7 0
3 years ago
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