33. Which of the following is the correct calculation of the premium over conversion value? a. market...

33. Which of the following is the correct calculation of the premium over conversion value?

a. market price minus par value

b. market price minus conversion ratio

c. market price minus conversion value

d. market price minus stock price

35. A bond has a par value of $1,000, a market value of $900, a conversion price of $45, and an associated stock price of $40. The premium over conversion value is

a. $0.

b. $5.00.

c. $11.11.

d. $100.00.

Expert Solution

jeff jeffy answered 1 year ago

Which of the following is a correct calculation for after-tax salvage value if salvage value and...

Which of the following is a correct calculation for after-tax salvage value if salvage value and book value differ? A) Salvage – T(book value – salvage) B) (Initial cost - Salvage)T – (book value – salvage) C) Salvage – T(salvage – (initial cost – accumulated depreciation)) D) (Salvage – accumulated depreciation)T – (salvage – book value)

Which of the following statements is correct with regard to business tax calculation? When determining a...

Which of the following statements is correct with regard to business tax calculation? When determining a corporation’s taxable income, all of the expense items are 100% deductible. Net operating losses can be carried back to the past three years and carried forward to the next 15 years. Alternative Minimum Tax system applies to small companies and low-income taxpayers. Dividend and long-term capital gains usually are levied at a flat tax rate which is comparatively high.

Which of the following are correct? i. The liquidity premium for a 2-year government bond is...

Which of the following are correct? i. The liquidity premium for a 2-year government bond is higher than the liquidity premium for a 5-year government bond. ii. The liquidity premium for a 3-year government bond is lower than the liquidity premium for a 3-year corporate bond. iii. The expected return from holding an illiquid two year zero-coupon bond to maturity is higher than the expected return from buying a liquid one-year zero-coupon bond (and holding it to maturity) followed by...

1. Assume a bond is currently selling at premium. Which of the following statement is correct...

1. Assume a bond is currently selling at premium. Which of the following statement is correct if YTM on the bond increases? Multiple Choice It is possible that this bond sells at discount after YTM rises. The bond will still sell at premium. The coupon payments will be adjusted to the new discount rate. The coupon rate of the bond will increase. 2. What is the current price of a $1,000 par value, 6% coupon bond that pays interest semi-annually...

Which of the following statements about insurance plans and premium rate setting is most correct? A...

Which of the following statements about insurance plans and premium rate setting is most correct? A Insurers set premium rates to include both the costs of providing healthcare services and the costs of providing (administering) the insurance plan, including profits. B A single method is used to set premium rates: the fee-for-service approach. C A single method is used to set premium rates: the cost approach. D Although premiums may be set using several different methods, healthcare providers are all...

Which of the following equations is correct? A. Discount rate = Risk-free rate – Risk premium...

Which of the following equations is correct? A. Discount rate = Risk-free rate – Risk premium B. Discount rate = Risk-free rate ? Risk premium C. Discount rate = Risk-free rate ÷ Risk premium D. Discount rate = Risk-free rate + Risk premium

Which one of the following statements is not correct? A. Over a week-long period, if a...

Which one of the following statements is not correct? A. Over a week-long period, if a healthy person were to ingest 35 g of NaCl, the total amount of NaCl excreted in the urine would be less than 35 g. B. In the proximal tubule, large amounts of Na+ and water are reabsorbed but the concentration of Na+ in the proximal tubular fluid does not change. C. A drug that inhibits active NaCl reabsorption in the ascending limb of the...

Which of the following describes the meaning of Enterprise Value? It is the market value of...

Which of the following describes the meaning of Enterprise Value? It is the market value of equity It is the market value of debt It is the market value of equity plus debt Answers a and b Answers b and c

1. which of the following statements is correct regarding the model of the labor market a....

1. which of the following statements is correct regarding the model of the labor market a. in the short- and medium-run models the amount of capital is fixed, while in the long run model the amount of capital can vary. b. capital-intense technology progress raises unemployment in both the short and long run. c. in the long run model, firms enter the market shen the markup (profits) are low. 2. The introduction of a new labour-saving technolofy results in: a....

in comparing monopoly to a perfect competitive market, which of the following is correct? a. equilibrium...

in comparing monopoly to a perfect competitive market, which of the following is correct? a. equilibrium quantity will be higher under perfect competition b. consumers will be better off with the monopoly c. market price will be higher under perfect competition d. employment will be higher under monopoly

Question