Exhibit 14-11 Omega, Inc issued $100,000 of its 7% five-year bonds on January 1, 2014, at 98. Interest is paid on January 1 and July 1. The bonds are callable at 104 and straight-line amortization is used. The bonds are recalled on April 1, 2016. ? Refer to Exhibit 14-11. Interest expense for 2016 will be
A) $1,750.
B) $1,800.
C) $1,850.
D) $1,900.
C
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If Steve Templeton decides to not close the plant in Kantron, what business social responsibility will Steve Templeton be achieving?
A) moral minimum B) corporate citizenship C) maximizing profits D) stakeholder interest
One use of short-range forecasts is to determine:
A) planning for new products. B) capital expenditures. C) research and development plans. D) facility location. E) job assignments.
In its role as a banker for banks, the Fed:
A. regulates the total amount of money within the overall economy. B. reduces the discount rate so that banks can obtain funds at a lower cost. C. performs open market operations, which involve buying and selling government securities, which include treasury bonds, notes, and bills. D. coordinates the check-clearing process for checks on behalf of any banks that are willing to pay its fees.
Winnie Polk can buy a car for $10,250. The dealer will give her $1,500 for her old car if she uses their financing option, and she can finance the rest with 36 monthly payments of $275. Winnie could also borrow the money from a bank for a total cost of $576.50. How much would Winnie save by borrowing from the bank instead of financing through the dealer?