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

Kelly is 28 years old and lives in California. This year 2019 tax year, Kelly bought a new auto for $20,000 plus 1,650 in state and local sales taxes. Besides this sales tax, Kelly also paid $8,260 in state income taxes mortgage interest of $5,500 (400,000 acquisition indebtedness on her residence). If Kelly files single with AGI of $56,000, what amount of itemized deductions will she be eligible to claim

Answers

$8260 + $5500= 13,760 State income taxes, but not sales taxes,

One characteristic of the United States Foreign Corrupt Practices Act is that it: ____________

a. applies to only international transactions that occur within the territorial borders of the United States.
b. is an attempt to support U.S. businesses by exporting U.S. values that indirectly aid business.
c. clearly stipulates terminology and behavior that is illegal on the part of U.S.
d. businesses and foreign business operating in the United States.
e. includes uncertainties such as terminology, definitions, accounting standards, and behavior standards.

Answers

One characteristic of the United States Foreign Corrupt Practices Act is that it clearly stipulates terminology and behavior that is illegal on the part of U.S

United States Foreign Corrupt Practices Act was set up in 1977. It helps to

serve as a guide to know the legal and illegal behavior expected of

individuals by the USA.

Example of illegal behavior by the Act includes offering bribes for favor to gain business deals, keeping to agreements etc.

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3

Tina wants to purchase new pair of shoes for 95$ and a jacket for 100$.

She has a credit card to use. What are her alternatives? *

O jacket and 100$

O shoes and jacket

credit card and 100$

none of the above

Answers

None of the options shows an alternative Tina has, a real alternative would be a credit card and cash ($190)

In economics, an alternative is an element that replaces or substitutes another. For an element to be considered an alternative it needs:

To belong to the same category or have the same function.To be possible for the user to replace the first element using the alternative.

Based on this, let's analyze each of the options:

Jacket and $100: These are not alternatives because Tina wants a jacket and this product cannot be replaced with money as money will not protect Tina from cold weather.

Shoes and a jacket: These are not alternatives because Tina wants the two products not only one.

Credit card and $100: These would be alternatives if the total cost was $100. However, using a credit card Tina can pay for both products but using $100 she can only pay for one of the products.

Therefore, the options do not present alternatives; but one valid alternative is a credit card and $190.

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Leo Co. uses the allowance method to account for bad debts. At the end of the year, Leo Co.'s accounts receivable balance is $25,000; allowance for doubtful accounts balance of $100 (credit); and sales of $500,000. Based on history, Leo estimates that bad debts will be 2% of accounts receivable. The entry to record estimated bad debts will include a debit to Bad Debts Expense in the amount of:

Answers

The bad debts expense for the year to be debited will be $600.

Adjusted balance of the Allowance for Doubtful Accounts = Accounts receivable * 2%

Adjusted balance of the Allowance for Doubtful Accounts = $25,000 x 2%

Adjusted balance of the Allowance for Doubtful Accounts = $500

Unadjusted balance of the Allowance for Doubtful Accounts = $100

Amount of bad debt expenses = Adjusted balance of the Allowance for Doubtful Accounts + Unadjusted balance of the Allowance for Doubtful Accounts

Amount of bad debt expenses = $500 + $100

Amount of bad debt expenses = $600

Therefore, the bad debts expense for the year to be debited will be $600.

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Answer:$400

Explanation:

100 points
Aurora has been working on a visual for her sales presentation to her senior management team. She has tested it with a few coworkers. It took them several minutes to understand the message she’s trying to convey. Which two options should Aurora consider to improve the effectiveness of her presentation?

A. Use black and white instead of colors.
B. Simplify the visual.
C. Remove the visual from the presentation.
D. Use a different graphic or chart.
E. Make the title of the visual longer.

Answers

D. definitely D because she should try and a use a different visual format.

Answer:

D.

Explanation:

dallas buys strawberries, and he would be willing to pay more than he now pays. suppose that dallas has a change in his tastes such that he values strawberries more than before. if the market price is the same as before, then:

Answers

Answer:

the correct answer is b. Dallas's consumer surplus would increase

Explanation:

Dallas buys strawberries, and he would be willing to pay more than he now pays. He has a change in his tastes such that he values strawberries more than before. If the market price is the same as before, then Dallas's consumer surplus would increase.

Which of the following is true of disruptive technologies? A. The tech industry is the least fertile ground for disruptive technologies. B. Initially underperforming incumbents, over time their performance attributes improve to the point where they invade established markets. C. They come to market with a set of performance attributes that existing customers have demanded. D. Disruptive technologies and disruptive innovations are independent concepts. E. The term disruptive technologies is a simple one because few technologies are able to create market shocks and catalyze growth.

Answers

The true statement about disruptive technologies is they come to market with a set of performance attributes that existing customers have demanded.

Disruptive technologies are technological advancement that leads to changes in the operations of an industry, market or economy. Examples of disruptive technologies are artificial intelligence, 3d printing, cloud storage and robotics.

The technology industry is a fertile ground for disruptive technologies. This is because most inventions originate from the tech space. Disruptive technologies replace or drive out existing technologies and render them obsolete. The worst hit are underperforming incumbents.

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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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Select all the correct answers.
Which two expenses are considered variable expenses?
car loan payment
car fuel
o grocery bill
O mortgage payment
O property taxes

Answers

Explanation:

1: mortgage payment

2: property taxes

which of these is a criterion used to select a target market segment?

Answers

Answer:

the first one by the website

Explanation:

the websites name is the eustions name

Expected growth of a segment of these is a criterion used to select a target market segment. Thus, option (e) is correct.

What is segmentation?

Segmentation is the process of target market into groupings of potentiality customers choices and the needs. There are the different parts such as psychographic, geographic segmentation, demographic, and behavior.

The segmentation of the target market are the target this consumer was the related to the particular product and the services. The target market segment size of the population,  expected growth of a segment, competitive position in the market, cost to reach, and characteristic.

As a result, the significance of the segmentation are the aforementioned. Therefore, option (e) is correct.

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Your question is incomplete, but most probably the full question was.

similarity of needs of potential buyers within a segmentmeasurements of customer perceptionsdifference of needs of buyers among segmentspotential of a marketing action to reach a segmentexpected growth of a segment

nathalie, customer relations manager at digital media, inc., must inform her clients of a 15 percent price increase for all services. in doing so, she should be sure to

Answers

When informing her customers of a 15% price increase on all services, customer relations manager Nathalie must be sure to offer customers money-saving options such as bundled services or choosing less comprehensive plans.

Communicating a price increase can be perceived by customers as bad news, as it can affect their budget if they are not prepared to overspend on a digital media service.

Indirect communication is also positive when delivering bad news, as it can first focus on positive argumentation to soften a fact, such as demonstrating that the change will bring the following benefits:

Higher quality of service.Faster delivery.Customization.

Therefore, when communicating not-so-positive news to customers, manager Nathalie should seek to soften the impact of the news by emphasizing options for cheaper service, packages and plans so that she can keep her customers.

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who invented the selfie stick what purpose does it serve

Answers

Answer:

In 2005, selfie sticks were invented by Wayne Fromm, and the purpose of the selfie stick was to take photographs or videos by positioning a digital camera device beyond the normal distance of an arm. The device will also allow selfie-takers to affix their phones to a wall and stand away while snapping a picture. After the photo is taken, users will be able to easily remove their phones from the wall without leaving a trace.

Hope it helps you. :)

What is a Selfie

Selfie is a self-portrait picture diverted from the Aussie Language in  Australia

A selfie stick is used to take photographs or videos by positioning a digital camera device, typically a smartphone, beyond the normal range of the arm. This allows for shots to be taken at angles and distances that would not have been possible with the human arm alone.

a device in the form of a rod on which a camera or smartphone may be mounted, enabling the person holding it to take a photograph of themselves from a greater distance than if holding the camera or smartphone in their hand.

Answer:

Who Invented Selfie Stick

Wayne Fromm

What Purpose does The Selfie Stick Serve?

to take photographs or videos by positioning a digital camera device, typically a smartphone, beyond the normal range of the arm.

Answer:

The selfie stick was invented by a Canadian inventor named Wayne Fromm in the early 2000s. The purpose of a selfie stick is to extend the reach of a smartphone or camera so that the user can take a picture of themselves (a selfie) or a group photo with a wider angle without having to ask someone else to take the picture for them.Selfie sticks have become popular since they allow people to capture better photos of themselves with a background they would like to showcase. They are portable, easy to use and can be adjusted to different lengths.

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!!!

plz help 25 points!!!

Answers

Answer:

I thinks its b

Explanation:

lon 4 of 20
What is profit?
A. Money remaining when all expenses except salaries, rent, and
taxes have been paid.
B. Money lost after all other business expenses, including salaries,
rent, and taxes have been paid.
C. Money invested after all business expenses, including salaries,
rent and taxes have been paid.
D. Money remaining when all other business expenses, including
salaries, rent, and taxes, have been paid.
SU

Answers

just making points thank you

which one of the following is a primary market transaction?

Answers

Correct answer: A dealer buying newly-issued shares of stock from a corporation.

We best learn from other people's struggles, successes, and stories.
True
O False

Answers

Answer:

true bhe

Explanation:

syempre natututo rin tayo sa mga pagkakamali ng iba dahil sa pagkatuto natin alam na natin yung gagawin natin para maiwasan ang pagkakamali nila.

Answer:

true

Explanation:

higgins enterprises is accepting notes receivable from four customers for $18,000 each. which customer will end up paying the least in interest, assuming all individuals pay in full on the maturity date?

Answers

Answer:

328.5

Explanation:

18000*annual interest rate*days/360

18000*7.3%*90/360 = 328.5

Based on the amount accepted as notes receivables and the interest rates, the individual that will pay the least interest is Individual 3.

Individual 1:                                                        Individual 2:

= Amount x Interest x Period / year                 = 18,000 x 5.98% x 1 year

= 18,000 x 6.75% x 4/12 months                     = $1,076.40

= $405

Individual 3:                                                       Individual 4:

= 18,000 x 7.3% x 90/365 days                       = 18,000 x 7.15% x 8/12 months

= $324                                                              = $858

In conclusion, Individual 3 will pay the least interest.

The customers in question are:

A. Individual 1 has an annual interest rate of 6.75% and a maturity date of four months.

B Individual 2 has an annual interest rate of 5.98% and a maturity date of one year.

C Individual 3 has an annual interest rate of 7.3% and a maturity date of 90 days.

D. Individual 4 has an annual interest rate of 7.15% and a maturity date of eight months.

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Segment margin is equal to sales revenue less all costs attributable to a segment that ______. Multiple choice question. is the same thing as contribution margin is calculated as part of a special-order decision includes both direct and common fixed costs includes both variable and direct fixed costs

Answers

Answer:

includes both variable and direct fixed costs

Explanation:

Some companies expand successful retail businesses by entering into contracts that give others the right to operate businesses with the same name and format. This is called ______. Multiple choice question. franchising an administered vertical marketing system licensing co-branding

Answers

Answer:the answer is franchising

Explanation:

Franchises are contracts or stores and are given to public people to own and operate

Franchising is when some companies expand successful retail businesses by entering into contracts which give others right to operate businesses.

What is franchising?

Franchising refers to an arrangement whereby a one party gives aproval for the other party to trade in his name with all rights and privileges.

Advantages of owning a franchise are :

Franchise owner gets valuable help throughout the lifespan of the business. Owning a franchise comes with a low rate of failure.

Hence, franchising is when some companies expand successful retail businesses by entering into contracts  which give others right to operate businesses.

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How many corporations still offer their employees a pension plan
10%
50%
12%
20%

Answers

The answer is mostly likely 12%

Which statement best describes the relationship between inflation and
savings?
A. As savings grow faster than inflation, the savings will buy less.
B. As inflation increases faster than savings, the savings are worth
less.
O C. As savings grow slower than inflation, the savings will buy more.
D. As inflation decreases faster than savings, the savings are worth
more.

Answers

Answer:

B. AS savings grow fast than inflation, the savings the savings are worth less.

Explanation:

This is because Over time, inflation can reduce the value of your savings, because prices typically go up in the future. This is most noticeable with cash. If you keep $10,000 under your bed, that money may not be able to buy as much 20 years into the future.

The statement that best describes the relationship between inflation and savings is that: As inflation increases faster than savings, the savings are worthless.

What is Inflation?

Inflation can be defined as a decrease in the purchasing power of money that is reflected in a general increase in the prices of goods and services in an economy.

The relationship between inflation and savings can be described as a point where inflation increases faster than savings, the savings would be worthless.

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of the 4 companies listed below, which company is more likely to use specific identification to value its inventory and cost of goods sold?

Answers

The question did not supply the four listed companies.

However, the companies that usually use the specific identification methods to value their ending inventory and the cost of goods sold are the companies that trade unique and high-value goods.

For a piece of jewelry, each item is usually unique, and they are not mass-produced. Such a company can use the specific identification to track the cost of each item. Companies selling heavy equipment can also use the specific identification method to value their inventory.

Thus, the specific identification method enables the company to determine the cost of its ending inventory and the cost of goods sold.

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where is the account accumulated depreciation on equipment found on the financial statements?

Answers

Answer:

The Balance Sheet

Explanation:

The accumulated depreciation lies right underneath the "property, plant and equipment" account in a statement of financial position, also known as a balance sheet or report on financial condition.

which country in the world consumes the most coca-cola per capita?

Answers

Answer:

Mexico

Explanation:

Mexico.

which of the following identifies the goods or services of a specific business, person, or organization?

Answers

The term that helps in identification of goods as regards this question is B: Trademark.

A trademark can be regarded as an intellectual property, which helps in offering of protection for a brand.

It identity the source where the goods/service comes from, and distinguish it from someone else business.

Therefore, option B is correct.

CHECK THE COMPLETE QUESTION;

Which of the following identifies the goods or services of a

specific business, person, or organization?

Trademark

License

Fair use designation

Copyright

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How does fractional-reserve banking influence the money supply in the United States?

Answers

The banking system help influence money supply by using customer's deposit to generate more money in the system.

The Fractional reserve banking is a system where the banks hold some fraction of the customers' deposit as reserves and the rest are used to generate returns in the form of interest rates on loans.

The United States banking system practices the fractional reserve banking because its allows the commercial banks to get interest on customer's deposits with them

Therefore, in conclusion, the fractional-reserve banking influence the money supply in the United States because the process helps creates more money and thus increases the economy money supply.

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Answer:

Fractional-reserve banks issue depositor funds to borrowers, increasing the number of claims made on the same dollars.

Explanation:

Acme, Inc.'s books show an ending cash balance of $10,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $3,000; deposits in transit of $2,000; NSF check of $100; and interest earned on the bank account of $10, the company's up-to-date ending cash balance equals ______.

Answers

The company's up-to-date ending cash balance equals $9,100.

Here, we are preparing company's up-to-date ending cash balance through reconciliation format.

Balance as per bank          $0               Balance per books        $10,000

Add: Deposit in transit        $2,000        Add: Bank collection      $0

Less: Outstanding checks  $3,000       Add: Interest revenue     $10

Adjusted bank balance      $9,110        Less: Service charges      $100

                                                                         EFT and NSF checks  

                                             $10,110        Adjusted book balance  $10,110

Therefore, the company's up-to-date ending cash balance equals $9,100.

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Karen is the next employee scheduled to attend 3 weeks of training in another state. Her employer knows the training will disrupt Karen's family life. The employer arranges cell phone service and Internet access for Karen to communicate daily with her family while she is away. Other coworkers tell Karen how useful the training has been, and that the time away goes quickly. By supporting Karen, the coworkers and the employer are improving Karen's _______ to learn.

Answers

By supporting Karen, co-workers and the employer are improving Karem's willingness to learn during her training, which is positive behavior that encourages and motivates the employee.

Training helps in the development of employees, makes them more motivated, creative and consequently productive, which is an essential advantage for companies to remain competitive and profitable.

Team behaviors also demonstrate an organizational culture favorable to collaboration, understanding and the development of employee skills and competencies.

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when does the right to enforce patent protection begin

Answers

When the idea is created and on paper
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