1 one potential advantage of financing corportations, Ask an Expert

Accounting

1. one potential advantage of financing corportations through the use of bonds rather than common stock is

a.the interest on bonds must be paid when due
b.the corporation must pay the bonds at maturity
c.the interest expense is deductable for tax purposes by the corporation
d.a higher earnings per share is guarenteed for existing common shareholders

2. when the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are

a. convertible bonds
b.unsecured bonds
c.debenture bonds
d.callable bonds

3. the present value of $30,000 to be received in 2 years, at 12% compounded annually is (rounded to nearest dollar)

a. $23,916
b.$37,632
c.23,700
d.30,000

4. An unsecured bons is the same as a

a. debenture bond
b. zero coupon bond
c. term bond
d. bond indenture

5. if $1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash recieved from the sale is

a.$1,080,000
b.$975,000
c.$1,000,000
d.$1,025,000

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9797321

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - carpenter inc had a balance of 80000 in its

Question - Carpenter Inc. had a balance of $80,000 in its quality-assurance warranty liability account as of December 31, 2015. In 2016, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated ...

Question - given the following data what is the value of

Question - Given the following data, what is the value of the gross profit as determined by the LIFO method? Sales revenue 300 units at $15 per unit Purchases 240 units at $10 per unit Beginning Inventory 120 units at $9 ...

Question - the pritzker music pavilion in downtown chicago

Question - The Pritzker Music Pavilion in downtown Chicago is a technologically sophisticated and uniquely designed performing arts venue that hosts live concerts attended by over half a million patrons a year. A group o ...

Question - on january 1 eastern college received 1370000

Question - On January 1, Eastern College received $1,370,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spre ...

Questions -q1 conner corporations adjusted trial balance

Questions - Q1. Conner Corporation's adjusted trial balance included the following items:Accounts payable ($65,000), Accounts receivable ($45,000), Capital stock ($100,000), Cash ($50,000), Dividends ($10,000), Goodwill ...

Question - you are saving for a porsche carrera cabriolet

Question - You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit $15,000 at the end of each year for the next 10 years. You expect to earn 8 perc ...

Question - alex acquires a residential rental property on

Question - Alex acquires a residential rental property on June 1, 2018 at a total cost of $423,000. Of this total, $132,000 can be allocated to the value of the land. He immediately spends $42,000 to make major improveme ...

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question - x company incurred the following costs in

Question - X Company incurred the following costs in 2017: Factory insurance $4,606 Customer service 4,470 Advertising costs 5,478 Factory maintenance 4,475 Direct materials 5,151 Direct labor 4,165 Factory utilities 5,4 ...

Question - who pays the first level of tax on a c

Question - Who pays the first level of tax on a C corporation's income? What is the tax rate applicable to the first level of tax? Did recent tax law changes increase or decrease the corporate tax rate? under new taxatio ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert