Three additional types of securities used to raise long-term capital are preferred stock, warrants, and convertibles. Preferred stock is a hybrid security that represents a cross between debt and common equity. A is a derivative security issued by firms to facilitate the issuance of some other type of security. It represents a long-term option to buy a stated number of shares of common stock at a specified price. A security is a bond or preferred stock that can be exchanged at the option of the holder for the common stock of the issuing firm at no additional cost to the holder. All these financing instruments can be used to raise capital efficiently and at a relatively low cost. The fill-in the blank options are:

1. Convertible / Lease / Warrant

2. Convertible / Lease/ Warrant

Financial information that is capable of making a difference in a decision is

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.