Answer:
a) The bonds were issued at a premium.
Explanation:
Given that
There are the bonds of $5,000,000
And, if the total amount received that involved the accrued interest also so the amount of the bond is $5,060,000
This means the bond is issued at premium as the value is increased i.e. fro m $5,000,000 the value is now $5,060,000
So, the option a is correct
And, the rest of the options would be incorrect
Both A and B so answer C.
Answer:
Basic earning per share $0.21 per share
Explanation:
Basic Earning per share = ( Net Income - Preferred stock dividend ) / Weighted Average outstanding shares
Basic Earning per share = ( $200,000 - $50,000 ) / 700,000
Basic Earning per share = $150,000 / 700,000
Basic Earning per share = $0.2143 / share
Weighted average Outstanding shares = 500,000 + 200,000
Weighted average Outstanding shares = 700,000 shares
Answer:
B
Explanation:
Proximate cause means “legal cause,” or one that the law recognizes as the primary cause of the injury. ... In other words, the plaintiff will have to show that the injuries were the natural and direct consequence of the proximate cause, without which the injuries would not have occurred.
Answer:
You should buy more shares
Explanation:
The above-mentioned question is missing few components. I have added them to explain on how the question would be solved if all the variables were provided. Please note the additions in bold text below. The answer of which is given afterwards.
You own 300 shares of Somner Resources' preferred stock, which currently sells for $39 per share and pays annual dividends of $5.50 per share. If the market's required yield on similar shares 12% is percent, should you sell your shares or buy more?
Solution as mentioned below:
First of all we need to calculate value of the preferred stock by dividing the annual dividend per share from the market required rate.
Value of preferred stock = 5.50 / 12%
Value of preferred stock = $45.83
Now given the fact that the current price at which the stocks are sold is $39 which is less than the price at which they are actually valued which is $45.83. You should buy more of the shares as they are currently undervalued.
