30

A company issued 5-year, 7% bonds with a par value of $100,000. The company received $97.947 for the bonds. Using the straight-line method, the amount of interest se for the first semiannual interest period is: A $3,500 00 B $3,204.70 C. $3,705.30 D. $7,410.60 E. $7,000.00 27 : Adidas issued 10-year, 8% bonds with a par value of $200,000. Interest is paid semiannually. The market rate on the issue date was 7.5%. Adidas received $208,948 in cash proceeds. Which of the following statements is true? A A ss must pay $200,000 at maturity plus 20 interest payments of $8,000 each $208,948 at maturity plus 20 interest payments of $8,000 each B. Adidas must pay .Adidas must pay $200,000 at maturity plus 20 interest payments of $7,500 each D. Adidas must pay $206,948 at maturity and no interest payments E. Adidas must pay $200,000 at maturity and no interest payments 28 Stockholders' equity consists of A. Contributed capital and retained earnings B. Long-term assets C. Retained earnings and cash D. Contributed capital and par value E. Premiurns and discounts 27A dividend preference for preferred stock means that A. Preferred shareholders are guaranteed dividends B. Dividends must be declared on preferred stock C. Dividends are paid quarterly R Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders Preferred stockholders prefer dividends more than common stockholders 30 Retained earnings: A Generally consists of a company's cumulative net income less any net losses and dividends declared since its B. Can only be appropriated by setting aside a cash fund C. Represent an amount of cash available to pay shareholders D. Are never adjusted for anything other than net income or dividends E. All of the above