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o-na [289]
2 years ago
10

A convertible preferred stock is convertible at $10, pays a 4% annual dividend, is callable at $110, and is trading at a current

market price of $116. Based on these details, what is the parity price of the common stock
Business
1 answer:
Leno4ka [110]2 years ago
4 0

Answer:

$11.60

Explanation:

In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price

The par value of the preferred stock=$100(since call price is $110)

convertible price=$10

conversion ratio=$100/$10=10

The parity price is the current market price of the preferred stock divided by the conversion ratio

Parity price=$116/10

Parity price=$11.60

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Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J
Fed [463]

Answer:

C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.

Explanation:

A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.

Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.

In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.

6 0
3 years ago
Durban Metal Products, Ltd., of the Republic of South Africa makes specialty metal parts used in applications ranging from the c
gladu [14]

Answer:

<u>Overhead Report for heavy-duty trailer axles.</u>

Order size ($ 16.85 × 200)              $3,370.00

Customer orders ($ 320.00 × 1)        $320.00

Product testing ($ 89.00 × 4)            $356.00

Selling ( $ 1,090.00 × 2)                  $2,180.00

Total                                                 $6,226.00

Conclusion :

The total overhead cost assigned to the order is $6,226.00

Explanation:

ABC system allocates overheads to jobs using cost drivers.

First an Activity Center where costs accumulate is identified these can be several in our scenario we have four Activity Centers.

Then the Cost driver rate is calculated for each Activity Center. Our question has provided these.

The final step is to allocate the overheads to a particular job using the cost driver rate.

7 0
3 years ago
Floors n’ More, Inc., hires Gordon to renovate Floors n’ Mores showroom. Gordon submits plans that Floors n’ More approves. Gord
gogolik [260]

Answer:

Yes Gordon can sue Floors n' Mores for the settlement of the contract keeping in mind that Gordon has made partial completion of the contract. Full payment would be determined based on the completion of the total work in line withe the plans submitted when the contract was signed

Explanation:

In order to understand the scenario in case if Gordon wants to sue Floors n Mores they can only be compensated for the amount of project completion in line to the expectations that matches to Floors n More.

For Example if 75% of the work is in line with the expectation of Floors N More then Gordon should be paid total amount payable multiply by 75%.

Usually in such cases if the contract is fulfilled to certain extent it is preferred to close the contract based on the %age of completion because major reconstruction, buying of fixtures and furniture was executed. Hence major risks and rewards were transferred to Floors n Mores.  

4 0
3 years ago
A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortg
Sunny_sXe [5.5K]

Answer:

c. The balance of mortgage payable will decrease each period the loan is outstanding.

Explanation:

Since in the question it is mentioned that the coporation has to pay the amount of $80,000 to bank for 10 years in order to reply the loan so according to the given options the option c should be selected as the part of the annual payment would be considered to the loan principal amount this increase for each and every period but at the same time the interest expense amount would be reduced in each and every period at the time when loan become outstanding

4 0
3 years ago
Jack just bought a car. what risk does he face?
Oxana [17]

Jack can face multiple risks.

He can be injured or killed in a car wreck.

He can injure or kill someone in a car wreck.

Bills.

Car note.

Gas Money

Tickets.

Parking.

Hope this helps Buddy!



- Courtney

4 0
3 years ago
Read 2 more answers
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