Marwick Corporation issues 23%, 5 year bonds with a par value of $1,150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 21%. What is the bond's issue (selling) price, assuming the Present Value of $1 factor for 10.5% and 10 semi-annual periods is 0.3684 and the Present Value of an Annuity factor for the same rate and period is 6.0148?

a. $1,150,000

b. $939,244

c. $1,945,457

d. $1,219,117

e. $354,543

A company has 650 shares of $50 par value preferred stock outstanding, and the call price of its preferred stock is $61 per share. It also has 26,000 shares of common stock outstanding, and the total value of its stockholders' equity is $900,250. The company's book value per common share equals:

a. $32.29.

b. $33.78.

c. $34.63.

d. $33.10.

e. $33.38.

A machine with a cost of $135,000 and accumulated depreciation of $90,000 is sold for $52,500 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

a. $52,500.

b. Zero. This is a financing activity.

c. $7,500.

d. $45,000.

e. Zero. This is an operating activity.