1)What is the advantage of issuing 30-year debt over 5-year debt for corporations in a low interest rate environment? Corporations are less likely to default over a 30-year period than 5 years. Corporations can lock in a lower rate for a longer period without having to rollover their debt every five years at potentially higher rates. 30-year rates are usually lower then 5-year US Treasury rates. Investors are generally willing to accept lower rates over 30 years compared to 5 years.

2)When a company's bonds are in great demand and their prices go up, this means that the borrower is paying a lower financing rate. is paying a higher financing rate. has a higher risk of default. is free from risk of default.

3)"Green bonds" is a name given to a class of bonds issued exclusively by the Corporation for Green Investments. that are used to fund organic vegetable farms. that are printed on green colored certificates of ownership and are issued by domestic companies only. whose proceeds are used to fund environmentally sustainable activities.

4)In the balance sheet, mortgage notes payable are reported as a current liability only. a long-term liability only. both a current and a long-term liability. a current liability except for the reduction in principal amount.

5)Corporations invest excess cash for short periods of time in each of the following except low-risk securities. equity securities. government securities. highly liquid securities.

6)Swifty Co. purchased 41, $1,000, 6%, Cullumber Company bonds on January 1, 2019 for $41470 cash. Interest is payable annually on January 1. The entry to record the January 1, 2020 annual interest payment would include a credit to Interest Receivable for $2460. credit to Debt Investments for $2488. debit to Interest Revenue for $2460. credit to Interest Revenue for $2488.

7)Which of the following reasons best explains why a company that experiences seasonal fluctuations in sales may purchase investments in debt or stock securities? The company may have excess cash. The company may invest for speculative reasons to increase the value in pension funds. The company may invest for the strategic reason of establishing a presence in a related industry. The company may generate a significant portion of its earnings from investment income.

8)Marigold Industries owns 39% of Cullumber Company. For the current year, Cullumber reports net income of $256000 and declares and pays a $60000 cash dividend. Which of the following correctly presents the journal entries to record Marigolds equity in Cullumbers net income and the receipt of dividends from Cullumber?

9)Sheffield Corporation has 31,300 shares of $10 par value common stock outstanding when it announces a 2-for-1 stock split. Before the split, the stock had a market price of $126 per share. What will be the approximate market price per share?

Market Price