The disadvantage of swaps is that
A) they lack liquidity.
B) it is difficult to arrange for a counterparty.
C) they suffer from default risk.
D) they are all of the above.
D
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Breezy Company is considering the replacement of equipment that has a current book value of $340,000. Breezy has an opportunity to sell the equipment for $240,000. The cost of replacing the old equipment with a new machine is $300,000. The cost of operating the new equipment is $20,000 per year less than the cost of operating the old equipment. The new equipment has a 5-year useful life. The amount of the sunk cost for this replacement decision is
A. $240,000 B. $300,000 C. $100,000 D. $340,000
Diana Dion is currently researching data sources from within her company to make marketing decisions. Diana is making use of ________ databases
A) online B) internal C) external D) public E) search service
Bridge Corporation had two issues of securities outstanding-- common stock and a 5 percent convertible bond issue in the face amount of $10,000,000 . Interest payment dates of the bond issue are June 30 and December 31 . The conversion clause in the bond indenture entitles the bondholders to receive 40 shares of $20 par value common stock in exchange for each $1,000 bond. On June 30, 2014, the
holders of $1,800,000 face value bonds exercised the conversion privilege. The market price of the bonds on that date was $1,100 per bond and the market price of the common stock was $35 . The total unamortized bond discount at the date of conversion was $500,000 . What amount should Bridge credit to the account "Paid-In Capital in Excess of Par" as a result of this conversion assuming Bridge does not want to recognize any gain (or loss) on the conversion? a. $0 b. $270,000 c. $360,000 d. $920,000
What term is used to describe the creation of a security interest that is enforceable against the debtor?
a. Attachment. b. Pledge. c. Perfection. d. Lien.