The Lakeland Company issues $518,000 of its 10%, 10-year bonds at 106 on March 31, 2017. The bond pays interest on March 31 and September 30. On September 30, 2017, how much cash did the company pay to the bondholders?
A) $2,590
B) $51,800
C) $25,900
D) $12,950
C .Interest Paid = $518,000 x 10% x 6/12 = $25,900
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The Cramden Bus Company is currently all equity financed, but it is considering a leveraged capital structure, the details of which are presented in the table under the column labeled 'Proposed'
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Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.
Answer the following statement true (T) or false (F)