A corporation has issued $100 par, 8% cumulative convertible preferred stock, callable at par. The preferred is convertible into 1.4 shares of common stock. Currently, the preferred stock is trading at $102 while the common stock is trading at $75.50. The corporation calls the preferred stock at par plus accrued dividends of $2 per share. If a customer buys 100 preferred shares, converts, and then sells the common stock in the market, the profit is (ignoring commissions):_________

a. tender offer
b. forced conversion
c. advance refunding
d. simultaneous transaction

Answers

Answer 1

a. The profit the investor made when he sold the common stock shares in the market is $370.

b. The investor sold the 140 common stock shares through a. tender offer.

A tender offer is made when the investor is approached by another investor in the open market to buy the 140 common stock shares.  In this instance, the shares are sold at the prevailing market price.

Data and Calculations:

Par value of cumulative convertible preferred stock = $100

Dividend rate per year = 8%

Current price of preferred stock = $102

Number of shares of preferred stock bought = 100

Total cost of purchase = $10,200 (100 x $102)

Sales price of common stock = $75.50

Number of common stock shares converted = 140 (100 x 1.4)

Sales proceeds from sale of common stock = $10,570 ($75.50 x 140)

Profit made by investor = $370 ($10,570 - $10,200)

Thus, the sale of the common stock shares was not by forced conversion, advance refunding, simultaneous transaction, but by a tender offer.

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Related Questions

housing prices boomed from 2002 to 2006, fueling the market for subprime mortgages and forming an asset-price bubble. housing prices began declining in 2006, falling by more than 30%, which led to defaults by subprime mortgage holders.

Answers

Answer:

A

Explanation:

I belive the answer is A due to like ballon loans or smth like that if its wrong lmk!

separation of duties is important for internal control of

Answers

Answer:

Explanation:

Both cash payments and cash receipts.

according to gaap which method should be used to record the acquisition of a fixed asset

Answers

According to gaap, the method that can be utilized in recording the acquisition of a fixed asset is Cost method.

In GAAP , the one method that is notable and accurate in recording a fixed asset is the cost method.

The cost method can be regarded as method utilized in recording the acquisition cost of the fixed asset as well as the costs of bringing the fixed asset to the condition that is needed for it to be used as well as the required location.

Therefore, cost method helps in recording acquisition of a fixed asset .

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do you have to pay taxes twice on 401k withdrawals?

Answers

Maybe it could be 402 or 403

which budgeting approach requires justification for all expenditures

Answers

Answer:

i would love to help you but i dont know the answer

the manager at creative minds inc. is distressed that employee absenteeism increased by 16% in the past year. how would you recommend the manager respond to this inside force?

Answers

I will recommend that the manager identify the frequently absent employees and replace them with artificial intelligence.

Today, the artificial intelligence is a modern technology which performs the function of employees more efficiently and effectively.

The artificial intelligence such as software package that perform a work process automatically does not makes mistakes and does not appear absent as place of work.

Therefore, i will recommend that the manager identify the frequently absent employees and replace them with artificial intelligence.

The option includes "a. Evaluate the HR practices to ensure they are generating the behaviors needed to accomplish strategic goals. b. Identify the frequently absent employees, and replace them with artificial intelligence c. Remind employees about how Creative Minds is genuinely connected to supporting youth art programs. d. Demonstrate how the firm is committed to simultaneously tackling global social issues and maximizing shareholder wealth."

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Answer:

Identify the frequently absent employees, and replace them with artificial intelligence.

Explanation:

advantage of running your own shop by yourself and disadvantage of running your own shop?​

Answers

Advantages & Disadvantages of Owning Your Own Shop
Advantage: Financial Rewards. ...
Advantage: Lifestyle Independence. ...
Advantage: Personal Satisfaction and Growth. ...
Disadvantage: Financial Risk. ...
Disadvantage: Stress and Health Issues. ...
Disadvantage: Time Commitment.

Answer:

Explanation:

The good is you could make money and get other things you need but the bad is that you need to buy the supplies for the shop. there

companies with an online presence sometimes send direct mail to customers to advertise sales. the direct marketing association has a website where consumers can state their preferences for what types of mail they do and do not wish to receive. this is an example of ___.

Answers

Companies are companies

in a private placement of bonds, bonds may be sold to

Answers

The bonds in private placement can only be sold to the pre-selected investors and institutions.

The private placement means an private alternative to the process of issuing bonds which are previously publicly offered for the purpose of raising capital for the corporation.

The Private placement involves the offers or sales of debt/equity securities between the issuer and selected investors.

Therefore, in conclusion, the bonds in private placement can only be sold to the pre-selected investors and institutions.

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Consider the following information: Budgeted indirect cost $2,000 Budgeted production units 800 Budgeted direct manufacturing labor hours 500 Budgeted customer orders 400 Actual number of setups 1,000 Using broad averaging, what is the budgeted indirect-cost rate per direct manufacturing labor-hour

Answers

The budgeted indirect cost rate is $4.00 per direct manufacturing labor-hour.

Data and Calculations:

Budgeted indirect cost for the period = $2,000

Budgeted production units for the period = 800 units

Budgeted direct manufacturing labor hours = 500 hours

Budgeted customer orders for the period = 400 orders

Actual number of setups = 1,000 setups

Therefore, the budgeted indirect cost rate per direct manufacturing labor-hour = Budgeted indirect cost divided by the budgeted direct manufacturing labor hours.

= $4 ($2,000/500)

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There are 12,000 people living in Toyland. Of these 12,000 people, 1,000 are either too old to work or too young to work. Of the remaining individuals, 5,000 are employed with full-time jobs; 4,000 are employed part time but wish to work full time; 1,000 are currently not working but are looking for work; and the remainder are discouraged workers. The unemployment rate in Toyland is _____, and the percentage of the population that are discouraged workers is _____.

Answers

Answer:

323

Explanation:

because why not just trust me

The unemployment rate in Toyland is 10per cent, and the percentage of the population that are discouraged workers is 23.3per cent. Hence, option D is appropriate.

What is the meaning of Unemployment?

When someone is actively looking for a job while also being able to work, they are said to be unemployed. It is crucial to remember that a person must be actively seeking paid employment in the labor force to be termed unemployed.

The OECD defines unemployment as those over a certain age who are currently available for work but are not currently employed or self-employed. The number of jobless persons as a percentage of the labor force is used to calculate the unemployment rate, which is used to calculate the level of unemployment.

Numerous factors originate from both the supply side, or just the worker, and the demand side, or the employer, that contribute to unemployment. High-interest rates, the world economy being in a recession, and the financial crisis might all affect demand. Frictional unemployment as well as structural employment are major supply-side contributors.

Hence, option D is correct.

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Full Question-

12,000 people are living in Toyland. Of these 12,000 people, 1,000 are either too old to work or too young to work. Of the remaining individuals, 5,000 are employed with full-time jobs; 3,000 are employed part-time but wish to work full-time; 1,000 are underemployed but working full-time jobs; 1,000 are currently not working but are looking for work; and the remainder are discouraged, workers. The unemployment rate in Toyland is _____, and the percentage of the population that are discouraged workers is _____.

a 15 percent; 23.3 percent

b 20 percent; 9.1 percent

c 10 percent; 9.1 percent

d 10 percent; 23.3 percent

Charlotte complains that a lot of turnover is coming from branches that used to be First American Bank before the merger. She claims that the employees there were not used to so much oversight. Based on this information, First American was most likely a(n) __________ organization.

Answers

From Charlotte's complaint we can conclude that First American was most likely an organic organization.

An organic organization can be described as an organization that has all of its employees working at the same level.

It is flexible, has little layers of management and also has the ability to adapt well to changes. Also the organization is one that has little supervision.

This is obvious because of the claim that employees were not used to so much oversight.

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3. How do the ultra rich use charitable giving to make sure they pay less taxes?

Answers

Because when you donate to a charity it will not be taxed so you can put your money somewhere without it being taxed with it going somewhere good

Presented below is information related to Ricky Henderson Company.
Cost Retail
Beginning inventory $ 200,000 $ 280,000
Purchases 1,375,000 2,140,000
Markups 95,000
Markup cancellations 15,000
Markdowns 35,000
Markdown cancellations 5,000
Sales revenue 2,200,000
Compute the inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Ending inventory using conventional retail inventory method
$Presented below is information related to Ricky He

Answers

The ending inventory using conventional retail inventory method is $170,100.

Ricky Henderson Company Ending inventory

                                          Cost                                         Retail

Beginning inventory       $200,000                                 $280,000

Add Purchases                $1,375,000                               $2,140,000

Total                                 $1,575,000                              $2,420,000                                                    

Markups                                                      $95,000

Markup cancellations                                ($15,000)

Net markup                                                                          $80,000

($95,000-$15,000)

Total                                 $1,575,000                                 $2,500,000

($2,420,000+$80,000=$2,500,000)

Markdowns                                                     $35,000

Markdown cancellations                               ($5,000)  

Net markdown                                                                       ($30,000)

($35,000-$5,000)

Sales price of goods available                                             $2,470,000

($2,500,000-$30,000)

Less Sales revenue                                                               ($2,200,000)

Ending inventory at retail                                                      $270,000    

($2,470,000-$2,200,000)     

Second step is to calculate the Cost-to-retail ratio using this formula

Cost-to-retail ratio=Cost of goods sold available/Retail price of goods available+ Net markup

Let plug in the formula

Cost-to-retail ratio=$1,575,000/($2,420,000+$80,000)

Cost-to-retail ratio=$1,575,000/$2,500,000

Cost-to-retail ratio=0.63

Third step is to calculate the ending inventory at cost (lower of cost or market) using this formula

Ending Inventory at cost =Cost-to-retail ratio× Ending inventory at retail

Let plug in the formula

Ending Inventory at cost=0.63×$270,000

Ending Inventory at cost =$170,100

Inconclusion the ending inventory using conventional retail inventory method is $170,100.

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Delectable, Inc.'s unadjusted trial balance includes Accounts Receivable of $10,000; Allowance for Doubtful Accounts of $50 credit balance; and Sales Revenue of $100,000 (all on credit). Management estimates that 2% of credit sales will be uncollectible. Delectable's financial statements will show ______. (Check all that apply.)

Answers

Delectable's financial statements will show Allowance for Doubtful Accounts of $1,000 on balance sheet and Bad debts expense of $950 on Income statement

Here, we are to determine the records of bad debts expenses on Income statement and Allowance for doubtful accounts on Balance sheet.

Bad debts expense = Estimated bad debts - credit balance in allowance account

Bad debts expense = $1,000 - $50

Bad debts expense = $950

                            Journal Entry

General journal                                  Debit   Credit

Bad debts expense                            $950

Allowance for Doubtful accounts                   $950

(Bad debts expense recorded)

The allowance for doubtful account will be $1,000. ($950+$10) because the Allowance for Doubtful Accounts had $50 credit balance.

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Research simply involves reading about a subject.
- True
✅False

Answers

Answer:

Its false

Explanation:

you got it right

PLEASE HELP MEE 50 Pts

Question: What are the local, state, and federal taxes for a healthcare business?

Answers

Answer:

?????.. ?????????????

whats some work values for being a nail tech

Answers

Answer:

Explanation:

Flexible schedule. One of the main advantages of being a nail professional is that you can always work on a flexible schedule. Customer satisfaction. This is one arena in the beauty industry where you have the power to enhance the self-esteem of a person. Interactive field. As a nail technician you meet a number of people who are engrossed in the fashion industry apart from your customers. Lucrative field. A nail technician career is quite rewarding as the fashion industry is ever evolving with new designs, styles, colors, shapes and so forth.

PATIENCE WITH MANICURE CUSTOMERS!!

A successful nail technician has the patience to work diligently and pay close attention to the details. Your patience to thoroughly trim your clients’ nails, care for their cuticles, and apply polish will demonstrate your dedication.

CUSTOMER SERVICE!!

Every nail technician knows how to engage in conversation with their clients and provide them with high quality results.

Treat them to the level of service that they’d be proud to tell their friends and family about!!!

how to make money online without paying anything 2020

Answers

Answer:

you could sell stuff online for no cost.

Explanation:

what is the cumulative effect of the inventory error on total gross profit for the 2 years?

Answers

Answer:

its lower gross profit under the LIFO then the methode FIFO

Explanation:

HELP! i need help with this brochure project for economics and personal finance. its about Understanding Checking and Debit Accounts can someone please give me the information or something for it or if u have already done it can you please give it to me.
the document has all the information.

Answers

Answer:

PLEASE DO YOU HAVE IT NOW I NEED IT ASAPP

Explanation:

please I need to graduate

why economic environment is important?

Answers

Answer:

The economic environment consists of external factors in a business market and the broader economy that can influence a business. You can divide the economic environment into the microeconomic environment, which affects business decision making - such as individual actions of firms and consumers - and the macroeconomic environment, which affects an entire economy and all of its participants. Many economic factors act as external constraints on your business, which means that you have little, if any, control over them. 

" i took it from my book, nvm "

Explanation:

brainliest plz

What are common characteristics of less-educated workers that contribute to their having higher unemployment rates than workers with more education? Multiple select question. Working lower-skilled jobs Working jobs that are vulnerable to cyclical layoff Working jobs that are more permanent Having more time between jobs

Answers

Explanation:

but nobody question to only just right now multiple select question.

Answer:

Working lower-skilled jobs, having more time between jobs, and working jobs that are vulnerable to cyclical layoff.

Explanation:

If the incorporator makes a serious mistake in the process of incorporation the business, such as not filing the articles of incorporation with the secretary of state, the courts may still recognize the corporation as a(n) _______ corporation. Multiple Choice de facto executory implied de jure

Answers

A De facto corporation is a term used by courts to show the events in which a business organization that has failed in its effort to be a de jure corporation which is a corporation by law. but it will still be treated as a corporation. The courts may still recognize the corporation as a De facto corporation.

A De facto corporation is simply known as a type of corporation which is organized with beautiful compliance with the requirements of incorporation and allowed to stand and exercise the powers of a corporation until its existence is backed up by the State.

It shows that there is an extent of legal recognition of a corporation, even if its articles of incorporation may not have been filed correctly.

Conclusively, A De facto corporation is one where parties who tried to establish it must act in hope and must be running their business as a corporation.

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the erie canal connected industry and consumers in the east with what group?

Answers

The Erie canal was able to connect industries and consumers in the east with c. Midwestern farmers.

The Erie Canal:

Was completed in 1825Connected New York City and the Great Lakes Allowed for goods to be shipped to and from the New York to the Great Lakes

The Great Lakes were accessible to farmers in the midwestern region and after the Erie Canal was built, farmers were able to send their produce via the Great Lakes and through the Erie Canal to New York City where it could be purchased by industries and people or shipped internationally.

In conclusion, the Erie canal was very important to midwestern farmers as it increased their reach.

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Options for this question include:

a. Southern planters

b. Canadian fur traders

c. Midwestern farmers

d. New England fishers

kathleen is considering expanding her dress shop. if interest rates rise she is:

Answers

Answer:

likely to expand?

Explanation:

Kathleen is considering expanding her dress shop. If interest rates rise she is Less likely to expand

What is  interest rates

Higher interest rates can make it more expensive to borrow money. If Kathleen decides to borrow money or use credit to grow her dress shop, she might have to pay more money back because of the higher interest rates on those loans. This might make borrowing money more costly and might affect her choice to grow her business.

When interest rates go up, how people spend their money can change. When interest rates go up, it costs more for people to borrow money. This can mean people may spend less money on optional things like clothes, which could impact Kathleen's sales and income.

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what is the term for a group of project activities that are assigned to a single organizational unit?

Answers

Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.

withdrawn rs 1000 on a permanent basis out of capital.​

Answers

Answer:

withdraw a/c...........Dr           1000

         To cash a/c                           1000

Explanation:

why should mary ann and nana create a business plan?

Answers

One of the most important steps in beginning and operating a business is writing a business plan. It acts as a strategic instrument to direct choice-making, reduce risk, and increase chances of success.

A business plan is a strategic instrument for defining and clarifying the concept of the business as well as its main aims and objectives. It offers a methodical manner to describe what the company wants to accomplish and how it intends to do it.

In a business plan, Mary Ann and Nana describe the approaches they aim to take in order to realize their objectives. They can use it to plot out their necessary course, spot probable obstacles, and make backup plans.

The financial, human, and technological resources that the company will require to run successfully are listed in the business plan. This guarantees effective resource allocation and prevents wasteful spending.

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when a contingent event that may give rise to a future loss is likely to occur, it is said to be

Answers

When a contingent event that may give rise to a future loss is likely to occur, it is said to be contingent liability.

A contingent liability is a possible loss that could arise due to an event in the future. Such losses are regarded as probable losses or could also be said to be reasonably possible losses

Examples of  contingent liability that has the probability of happening in the future is a lawsuit or the warranties from a product.

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