Assume you buy $1,000 of a convertible bond at par, which was offered at a 2.5% discount to its theoretical value. the stock price on the day of purchase is $35, and carries a 1% dividend yield. the convertible bond has a 4% coupon, a conversion premium of 20%, and a delta of 56%. interest income from the short position is 1.5%, and stock borrow cost is 0.25%. during a one-year holding period, the stock moves 3 times. the percentage change in stock price, corresponding convertible bond value, and new delta ratio, in sequential order are as follows: 7% / $1,037.12 / 61%; -5% / $1,012.11 / 58%; 4% / $1,032.71 / 60%. calculate the returns generated from this investment after one year, broken out by income generation, monetizing volatility, and purchasing an undervalued convertible. ignore transaction costs for the purposes of this exercise.

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.

Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.