1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lisabon 2012 [21]
3 years ago
5

Your customer purchases FYZ 4% convertible preferred stock at $60 per share. The conversion price is $10. With the common stock

now trading 1 point below parity, you know that the common shares of FYZ are trading at
Business
1 answer:
KIM [24]3 years ago
6 0

Answer:

$9

Explanation:

Calculation for how much the common shares of FYZ are trading

First step is to find the conversion ratio

Using this formula

Conversion ratio =Market price of the convertible+Conversion price)/Conversion price

Let plug in the formula

Conversion ratio=$70/$10

Conversion ratio=7

Second step is to calculate for the Parity price of the common stock

Using this formula

Parity price=Market price of the convertible / conversion ratio

Let plug in the formula

Parity price=$70/7

Parity price=$10

Last step is to calculate how much the common shares of FYZ are trading

Using this formula

Common shares =Parity price-Common stock trading point

Let plug in the formula

Common shares =$10-1

Common shares=$9

Therefore the common shares of FYZ are trading at $9

You might be interested in
Nevin is a longtime teacher supervising a group of very eager, very dedicated teach for america volunteers who are excited about
vodka [1.7K]
The correct answer is "People-Oriented Leadership".

People-Oriented leadership refers to the kind of leadership, wherein a leader takes initiative and also believes that communication from one worker to another can be a good cause for effective teamwork. Nevin believes that social interaction can be a good cause for unity and a harmonious workplace to achieve goals easily.
6 0
3 years ago
Read 2 more answers
When firms are said to be price takers, it implies that if a firm raises its price: a. buyers will go elsewhere. b. buyers will
MatroZZZ [7]

Answer:

The correct answer is a. buyers will go elsewhere.

Explanation:

This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.

3 0
4 years ago
The common stock of the Avalon Corporation has been trading in a narrow range around $40 per share for months, and you believe i
Sergeu [11.5K]

Answer:

$700

Explanation:

Given that

Price of a 3 month put option = $3

Price of a 3 month call option = $4

Considering the above

Selling the straddle = sell a put + sell a call

Thus,

Total premium income from selling a stradle = (P + C)100

Where,

P is price of put

C is price of call

Therefore,

Total premium from selling a stradle

= (3 + 4)100

= 7 × 100

= $700

4 0
4 years ago
Read 2 more answers
Maintenance, which was about 18 of the total budget less than it spent on administrative personnel. The amount spent on administ
____ [38]

Answer:

the remaining budget for other expenses = 1/8 of the total budget

Explanation:

Since the city's administrative personnel expenses are 1/8 larger than both maintenance expenses and safety expenses, it means that safety expenses are equal to maintenance expenses.

Since maintenance expenses are 1/4 of the total budget, safety expenses are also 1/4 of the total budget.

Administrative personnel expenses are 1/8 higher, so that means that they equal 1/4 + 1/8 of the total expenses.

If we add the three categories = 1/4 + 1/4 + (1/4 + 1/8) = 7/8

So the remaining budget for other expenses = 1 - 7/8 = 1/8 of the total budget

8 0
3 years ago
The first budget customarily prepared as part of an entity’s master budget is the blank____________ .
Andreyy89

Answer: sales budget

Explanation:

The first budget customarily prepared as part of an entity’s master budget is the sales budget.

Sales budget is simply financial plan, that shows how resources will have to be distributed in order for the predicted sales to be achievable.

4 0
4 years ago
Other questions:
  • Mike started a calendar year business on September 1st of this year by paying 12 months rent on his shop at $1,000 per month. Wh
    10·1 answer
  • You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000
    8·1 answer
  • Yield to maturity (YTM) is the rate of return expected from a bond held until its maturity date. However, the YTM equals the exp
    10·1 answer
  • EXERCISE 6-3
    9·1 answer
  • All of Gaylord Company's sales are on account. Thirty-five percent of the credit sales are collected in the month of sale, 45% i
    11·1 answer
  • Transfer prices are _____. A. costs of the segment producing the product or service B. revenues of the segment acquiring the pro
    6·1 answer
  • What are the two types of products that
    14·1 answer
  • How to choose scented candles online?
    13·1 answer
  • Dermody Snow Removal's cost formula for its vehicle operating cost is $3,030 per month plus $333 per snow-day. For the month of
    5·1 answer
  • Text: "managerial accounting: tools for business decision making " 9th edition, isbn 9781119709589
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!