Convertible bonds are normally ________

A) debentures
B) income bonds
C) zero coupon bonds
D) mortgage bonds


A

Business

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Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?

A. $923.22 B. $946.30 C. $969.96 D. $994.21 E. $1,019.06

Business

Breakeven is when total fixed costs equal total revenues

Indicate whether the statement is true or false

Business

The accounting records of Calli Inc indicate that the firm sold for $1,800 during Year 2 a machine originally costing $6,000, with accumulated depreciation of $4,600 . The journal entry made to record this sale was as follows: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1,800 Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . 4,600

Loss on Disposal of Equipment . . . . . . . . . . . . . . . . . . . . 400 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 In preparing the statement of cash flows using the work sheet, the accountant. a. adds the $400 loss to net income in computing cash flow from operations. b. subtracts the $400 loss from net income in computing cash flow from operations. c. adds the $400 loss to net income in computing cash flow from investing activities. d. subtracts the $400 loss from net income in computing cash flow investing activities. e. subtracts the $400 loss from retained earnings in computing cash flow investing activities.

Business

Materials used by Square Yard Products Inc in producing Division 3's product are currently purchased from outside suppliers at a cost of $5 per unit. However, the same materials are available from Division 6. Division 6 has unused capacity and can produce the materials needed by Division 3 at a variable cost of $3 per unit. A transfer price of $3.20 per unit is established, and 40,000 units of

material are transferred, with no reduction in Division 6's current sales. How much would Division 3's income from operations increase? A) $150,000 B) $50,000 C) $32,000 D) $72,000

Business