Answer:
value of right = $1.95
Explanation:
given data
new shares = $19 plus 3
current market price = $26.80
to find out
value of one right
solution
we get here value of rights that is express as
value of rights = 
.............1
value of rights = 
value of rights = 
value of right = $1.95
Answer:
10%
Explanation:
Use future value formula
Future Value = Present Value ((1+r)^n)
26,600 = 20,000 ((1+r)^3
26,600/20,000 = (1+r)^3
1.33 = (1+r)^3
1.33^1/3 = 1+r
1.0997 = 1+r
1.0997 - 1 = r
r = 0.997 = 9.97% = 10% (rounded of to the nearest whole percentage)
Answer:
(a) An employee’s monthly credit card payments are nearly 75% of her monthly earnings. select a fraud triangle factor. Financial pressure.
(b) An employee earns minimum wage at a firm that has reported record earnings for each of the last five years. select a fraud triangle factor. Rationalization.
(c) An employee has an expensive gambling habit. select a fraud triangle factor. Financial pressure.
(d) An employee has check-writing and -signing responsibilities for a small company, and is also responsible for reconci. Opportunity.
Explanation:
Fraud refers to obtaining something of value with a false representation of facts.
The fraud triangle factors are:
Opportunity: A situation that allows fraud to happen, for example, there are no internal controls in a company.
Financial pressure: There is a need that takes a person to commit fraud, for example, a debt.
Rationalization: The person that commits the fraud justifies it in his mind, for example, the person needs the money more than the big organization.
Answer:
D) prime rate plus 4 percent
Explanation:
<em>Zebra Productions</em> will now be qualified as a sub-prime customer as it has been slow making payments to its bank. This has made its credit rating and quality lower. The lower credit rated customers are charged <em>sub-prime lending </em>rates which is charging interest rates higher than the prime lending rate ( lower interest rate for good credit rating customers). This is due to the fact that the bank is taking <em>higher risk</em> on the borrower's account and thereby should get <em>higher return</em> for taking higher risk.
Thus, <em>option no. D) prime rate plus 4 percent </em>would be charged to Zebra Productions.
Answer:
The correct answer is letter "B": The proceeds of the bond issue entirely as debt.
Explanation:
Under the U.S. General Accepted Accounting Principles (<em>GAAP</em>) the issuance costs of bonds are ignored for reporting purposes but the amount of sales revenues is recorded as debt. The amortization of the bond can be calculated using the <em>effective interest method</em> or the <em>straight-line method</em>.
