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steposvetlana [31]
2 years ago
12

Garcia Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. Cash proceeds exceed

the sum of the fair value of the warrants and the face amount of the bonds. This excess is reported as:
Business
1 answer:
777dan777 [17]2 years ago
5 0

Answer:

Discount on bond payable

Explanation:

since in the question it is mentioned that the company has issued the common stock warrants also the cash proceeds is more than the sum of the fair value + face value

So we presume that the bond are to be sold at the discount

Therefore the excess should be reported as the discount on bond payable

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Answer:

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Explanation:

A strictly dominant action does not play fair. Here, there is no equality because strict dominance requires all payoffs to be strictly greater.

A strictly dominant strategy is that strategy that always provides greater utility to a the player, no matter what the other player's strategy is.

A rational player will avoid a strictly dominated counterpart because if his opponent uses strictly dominated action he will be come out worse off regardless of which moves other players make.

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Answer:

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Answer:

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a)

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If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.

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