Answer:
A. $880
B. -$752.23
Explanation:
To find the conversion value of the issue, we start with this calculation
The initial step is to compute the Conversion ratio using the following formula
Conversion ratio = Par value of security/ Conversion price
Substituting, we find
Conversion ratio = $1,000/$25
Thus, Conversion ratio = 40
Next, we determine the Conversion value with this formula
Conversion value = Conversion ratio * Conversion price
Substituting gives
Conversion value = 40*$22 per share
Therefore, the conversion value of the issue equals $880
B. Now calculating the Straight bond value of the issue
Using a financial calculator for Present Value (PV)
PMT = 8%*1,000 = 80
N = 12 years
1/Y = 12%
FV = 1,000
Thus, PV = -$752.23
This means the Straight bond value of the issue is -$752.23
Answer:
The cost of goods manufactured equals 650,000.
Explanation:
Based on the following details:
Beginning inventory= $250,000
Cost accumulated during the period= $500,000
Ending work in process inventory= $100,000.
To find the cost of goods manufactured, apply this formula:
cost of goods manufactured= beginning WIP + cost incurred - Ending WIP
cost of goods manufactured= 250,000 + 500,000 - 100,000
cost of goods manufactured= 650,000
Answer:
a. The depreciation expense isn't separately listed, but its influences are shown in the projected tax payments.
Explanation:
The cash budget reflects all cash transactions, both receipts and payments
It includes interest and dividend disbursements, indicating cash outflows when payments are made in cash
Additionally, it impacts the Days Sales Outstanding (DSO) and encompasses cash inflows related to long-term sources such as bond issuance
However, since depreciation is a non-cash expense, it's not explicitly accounted for, but its impact is included in tax payment projections
Engaging in insider trading with your own company, you would analyze.
Answer: Distinctive competence
Explanation: Distinctive competencies refer to specific attributes that uniquely differentiate a person, company, or organization from its competitors. These qualities make it challenging for consumers to swap these services for another, while competitors often find them hard to replicate. Such features typically foster success, enhance customer loyalty, and provide an advantage over rivals. This concept is termed distinctive competence, indicating services available only from one entity or very few. In the context provided, Gadgetbug demonstrates distinctive competence through its exceptional after-sale customer service, which competitors struggle to equal.
