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nydimaria [60]
3 years ago
15

A few days before the end of the term of a two-year NDA (non-disclosure agreement) he signed with a startup company related to a

possible patent, Frank interviewed with another startup and divulged information covered by the agreement. The interview had been scheduled for a week later, in which case it wouldn’t have been an issue, but had been moved up when another job applicant dropped out and the company had an opening for an earlier interview. Frank reasoned that he had met the spirit of the NDA, and a few days early wouldn’t really matter. Besides, as it turned out, the company he interviewed with wasn’t interested in that information, although they did hire him. What would you have done if you were Frank?
Business
2 answers:
dezoksy [38]3 years ago
6 0

Answer:

if i was frank, i will rather not have tell the details of the information at my disposal from one company to another company because it is highly unethical  to do so and in its ethical sense,Informations is not supposed to be passed on even if it was a window opportunity as that is the standing of NDA. Even though he got hired and this disclosure of company secret will serve as a threat  to the company he had disclosed the information from in that instance or later on.

Explanation:NDA is all about non disclosure and if I be frank, I will honour it because it is the right thing to do by not devulging company's secret to another.

Tom [10]3 years ago
5 0

Answer:

Explanation:

If I was Frank I wouldn’t have disclosed the information from one company to the next, it is unethical and with an NDA information shouldn’t be passed on. Even though, it may have been an opportunity for the company he got hired and a threat to the company he disclosed the information from.

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A firm's WACC can be correctly used to discount the expected cash flows of a new project when that project will: Multiple Choice
Serggg [28]

Answer:

...when that project will have the same level of risk as the firm's current operations

Explanation:

Weighted average cost of capital (WACC) is the company's cost of capital based on its proportion of equity and debt used in its capital structure. It can be used as the discount rate for calculating the present value of future expected cashflows of a project if the project is determined to be of similar risk to the company's operations; meaning that the estimated beta of the project is the same as the beta of the firm.

5 0
3 years ago
Match the word or phrase with the best description of it. a. select the correct word or phrase An expression about whether finan
liubo4ka [24]

Answer Explanation

An expression about whether financial statements conform with generally accepted accounting principles

Audition. If the statement had been done conformed to GAAP it will be a positive audit.

business that raises money by issuing shares of stock:

Corporation, raise fund from issuance of stock

The portion of stockholders’ equity that results from receiving cash from investors

Capital or total paid-in capital

Obligations to suppliers of goods

Account Payable is the liability account to represent thedebt with suppliers

Amounts due from customers

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A party to whom a business owes money

It is a debtor to the company and will be state under:

Account Receivable or Note receivable accounts

A business that is owned jointly by two or more individuals but does not issue stock.

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8 0
3 years ago
On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on July 31,
kodGreya [7K]

Answer:

Answers are journal entries, in the explanation box

<h2>Explanation:</h2><h3><u>Bonds:</u></h3>

Bonds is an interest bearing security or long term promissory note that a company represents while borrowing money with the interested investors.

<h2><u>Requirement 1:</u></h2><h2><u>Prepare the journal entries on August 1, 2021, to record:</u></h2><h3><u>Requirement 1(a):</u></h3>

The issuance of the bonds by Limbaugh (L)

<u>Solution:</u>

<u>Following is the journal entry for the issuance of bonds on August 1, 2021:</u>

<u>1st August 2021:</u>

Debit: Cash  $31,200,000 <u>(Working 1)</u>

Debit: Discount on bonds payable  $3,600,000 <u>(Working 3: Note 1)</u>

Credit: Bonds payable  $30,000,000

Credit: Equity - stock warrants $4,800,000 <u>(Working 2)</u>

<u>Working 1:</u>

Calculation of cash received:

Cash received = Face value × Issued rate

Cash received = $30,000,000 × 104%

Cash received = $31,200,000

<u></u>

<u>Working 2:</u>

<u>Calculation of amount of equity - stock warrants:</u>

Equity - stock warrants = Market price per warrant × number of warrants × number of bonds

Equity - stock warrants = $8 × 20 warrants × (30,000,000÷ 1,000 bonds)

Equity - stock warrants = $4,800,000

<u>Working 3: </u>

<u>Calculate the discount on bonds payable:</u>

Discount on bonds payable = Bonds payable + Equity stock warrants - Cash received

Discount on bonds payable = $30,000,000 + $4,800,000 - $31,200,000

Discount on bonds payable = $3,600,000

<u>Note 1:</u> Since discount on bonds issues is an expense, therefore, it is debited.

<h3><u>Requirement: 1 (b)</u></h3>

<u>Prepare the journal entries on August 1, 2021, to record the investment by Interstate (I).</u>

<u></u>

The following is the journal entry on August 1, 2021 to record the investment by Interstate (I) i.e. investor:

Debit: Investment in stock $960,000 (Working 4)

Debit: Investment in bonds $6,000,000 (Working 5)

Credit: Discount on bonds investment $720,000 (Working 7)

Credit: Cash $6,240,000 (Working 6)

<u>Working 4: </u>

<u>Calculate the investment in stock warrants:</u>

Investment in stock warrant = Equity - stock warrant × 20%

Investment in stock warrant = $4,800,000 × 20%

Investment in stock warrant  = $960,000

Working 5:

Calculate the amount of investment in bonds:

Investment in bonds = Face value × 20%

Investment in bonds = $30,000,000 × 20%

Investment in bonds = $6,000,000

<u>Working 6:</u>

Calculate the amount of cash paid:

Cash paid = Face value × issued rate × 20%

Cash paid = $30,000,000 × 104% × 20%

Cash paid = $6,240,000

<u>Working 7:</u>

<u>Calculate discount on bond investment:</u>

Discount on bond investment = Investment in stock warrants + Investment in bonds - Cash paid

Discount on bond investment = $960,000 + $6,000,000 - $6,240,000

Discount on bond investment = $720,000

<h2><u>Requirement 2:</u></h2><h2><u>Prepare the journal entries for both Limbaugh and Interstate in February 2032, to record the exercise of the warrants.</u></h2>

<h3><u>Requirement 2(a)</u></h3>

<u>Prepare the journal entries for Limbaugh in February 2032, to record the exercise of the warrants.</u>

Solution:

Following is the journal entry for exercise of warrants by <u>Limbaugh</u>:

Debit: Cash: $7,200,000 (Working 8)

Debit: Equity - stock warrants $960,000 (Working 9)

Credit: Common stock - equity $8,160,000

<u>Working 8: </u>

<u>Amount of cash received from the exercise:</u>

Amount of cash received from the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash received from the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash received from the exercise = $7,200,000

<u>Working 9:</u>

<u>Amount of equity - stock warrants from exercise:</u>

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

<u>Working 10:</u>

<u>Amount of common stock:</u>

Amount of common stock = Cash received + equity - stock warrants

Amount of common stock = $7,200,000 + $960,000

Amount of common stock = $8,160,000

<h3><u>Requirement 2(b)</u></h3>

<u>Prepare the journal entries for Interstate in February 2032, to record the exercise of the warrants.</u>

Solution:

The journal entry is as follows:

Debit: Investment in common stock: $8,160,000 (Working 13)

Credit: Investment in stock warrants: $960,000 (Working 11)

Credit: Cash: $7,200,000 (Working 12)

Working 11:

<u>Amount of equity - stock warrants from exercise:</u>

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

<u>Working 12:</u>

<u>Calculate the amount of cash paid for exercise:</u>

Amount of cash paid for the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash paid for the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash paid for the exercise = $7,200,000

<u>Working 13:</u>

<u>Investment in common stock:</u>

<u>Amount of common stock:</u>

Investment in common stock = Cash paid + Investment in stock warrants

Investment in common stock = $7,200,000 + $960,000

Investment in common stock = $8,160,000

3 0
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A marginal external cost of a product is equal to
Lyrx [107]

Answer:

the answer is D hope that helps you out

4 0
2 years ago
Italian Stallion has the following transactions during the year related to stockholders’ equity. February 1 Issues 5,000 shares
bixtya [17]

Answer:

The Journal entries are as follows:

(a) On Feb 1,

Cash A/c (5,000 × $15)          Dr. $75,000

To common stock                                        $75,000

(To record the issue of shares)

(b) On May 15,

Cash A/c (500 × $12)                   Dr. $6,000

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Dividend Expense A/c (5,500 × $0.75)          Dr. $4,125

To Dividend Payable                                                            $4,125

(To record the declaration of dividend)

(d) On Oct 15,

No Journal entry would be passed.

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Dividend Payable A/c             Dr. $4,125

To cash                                                       $4,125

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