Question
1. Techner Company is a defendant in a current lawsuit that it estimates a $850,000 probable loss. The loss contingency should be: Disclosed and accrued
1. Techner Company is a defendant in a current lawsuit that it estimates a $850,000 probable loss. The loss contingency should be:
- Disclosed and accrued as a liability
- Disclosed but not accrued as liability
- Not Disclosed, but accrued as a liability
- Not Disclosed and not accrued as a liability
12. If the market rate is lower than the stated rate, bonds will be issued at
- Discount
- Premium
- Par Value
- Yield
2. A company issued 4%, 20-year bonds with a face amount of $60 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. Calculate the issue price of the bonds. Show your work and rounding may impact results.
A) | $60,000,000 |
B) | $46,131,324 |
C) | $18,393,600 |
D) | None of the above
|
3. A company repurchases its own stock. What impact will this have on stockholders' equity and earnings per share?
a. Decrease and no effect
b. Increase and no effect
c. Decrease and increase
d. Increase and decrease
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