We need to <span>provide
the accompanying estimates of federal budget receipts, federal budget
spending, and gdp, all expressed in billions of dollars</span>.
Answer:
Total product cost= $181,000
Explanation:
<u>The product cost is the sum of the direct material, direct labor, and manufacturing overhead:</u>
Direct materials $ 70,000
Direct labor $ 37,000
Variable manufacturing overhead $ 12,000
Fixed manufacturing overhead $ 25,000
Total manufacturing overhead $ 37,000
Total product cost= $181,000
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
