Business, 28.11.2019 06:31 mateotrevino1

Classify the following investments. each case is independent of the other.

investment classifications

(a)a bond that will mature in 4 years was bought 1 month ago when the price dropped. as soon as the value increases, which is expected next month, it will be sold.

(b)10% of the outstanding stock of farm-co was purchased. the company is planning on eventually getting a total of 30% of its outstanding stock.

(c)10-year bonds were purchased this year. the bonds mature at the first of next year.

(d)bonds that will mature in 5 years are purchased. the company would like to hold them until they mature, but money has been tight recently and they may need to be sold.

(e)a bond that matures in 10 years was purchased. the company is investing money set aside for an expansion project planned 10 years from now.

(f)preferred stock was purchased for its constant dividend. the company is planning to hold the preferred stock for a long time.
expert answer

Answers: 3

Show answers

Other questions on the subject: Business

Business, 20.06.2019 18:04, PushyGorilla

Joshua is a millionaire, and he manages several successful companies. he usually interacts with people of similar status. given this information, joshua and the people he interacts with are part of a

Answers: 2

continue

Business, 21.06.2019 19:40, hollycoleman13

Uppose stanley's office supply purchases 50,000 boxes of pens every year. ordering costs are $100 per order and carrying costs are $0.40 per box. moreover, management has determined that the eoq is 5,000 boxes. the vendor now offers a quantity discount of $0.20 per box if the company buys pens in order sizes of 10,000 boxes. determine the before-tax benefit or loss of accepting the quantity discount. (assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)

Answers: 1

continue

Business, 21.06.2019 22:50, Zagorodniypolina5

Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.

Answers: 1

continue

Business, 22.06.2019 10:00, Randomkid0973

University car wash built a deluxe car wash across the street from campus. the new machines cost $219,000 including installation. the company estimates that the equipment will have a residual value of $19,500. university car wash also estimates it will use the machine for six years or about 12,500 total hours. actual use per year was as follows: year hours used 1 3,100 2 1,100 3 1,200 4 2,800 5 2,600 6 1,200 prepare a depreciation schedule for six years using the following methods: 1. straight-line. 2. double-declining-balance. 3. activity-based.

Answers: 1

continue

You know the right answer?

Classify the following investments. each case is independent of the other.

investment cl...