Assume that Motorola, Inc., issues bonds with a face value of $10,000,000 for$9,200,000. The bonds have detachable warrants that may be traded in for shares of common stock. Assume that immediately after issue, bonds with warrants detached trade for $9,000,000; the warrants, for$400,000. Use the template below to show the financial statement effects at the date of issue.

	Assets		=	Liabilities	+	Shareholders' Equity
						CC	AOCI	RE
Journal entry

Pablo traded in his 2000 Ford for a new Ford. One week later, he hit an oily spot in the road on his way to work and skidded into a parked car. The 2000 Ford was insured under the PAP with full coverage, including a $250 deductible for a collision loss. At the time of the accident, Pablo had not notified his insurer of the trade-in. The physical damage to the parked car was$8000. Damage to Pablo’s car was $5000. Will Pablo’s PAP cover either or both of these losses? Explain.

With a partner or a group, toss a number cube 30 times and record the number showing on each toss. Compare the histograms. Describe how the distribution of the mean changes as the number of tosses increases.

This excerpt is taken from an article titled “Caywood Looks for Convertibles,” which appeared in the January 13, 1992, issue of BondWeek, p. 7:

Caywood Christian Capital Management will invest new money in its $400 million high-yield portfolio in “busted convertibles,” double- and triple-B rated convertible bonds of companies . . . , said James Caywood, CEO. Caywood likes these convertibles as they trade at discounts and are unlikely to be called, he said.

Why is Mr. Caywood interested in call protection?

Find a partner. Using the analogy, explain to your partner how life on Earth evolved over billions of years.

Get together with a partner. Try to guess at least five sentences your partner wrote in Activity 24. Check how many of your guesses were right. What activities do you and your partner have in common?

With a partner or in a group, discuss the following questions.

1. What is area?
2. Why are squares used to measure area?
3. What are some other possible units that could be used to measure area? Write your conclusions for each question.

Plantco produces three products. Three workers work for Plantco, and the company must determine which product(s) each worker should produce. The number of units each worker would produce if he or she spent the whole day producing each type of product are given in Table 21. TABLE 21:

$$\begin{matrix} \text{ } & \text{Product}\\ \text{Worker} & \text{1} & \text{2} & \text{3}\\ \text{1} & \text{20} & \text{12} & \text{10}\\ \text{2} & \text{12} & \text{15} & \text{9}\\ \text{3} & \text{6} & \text{5} & \text{10}\\ \end{matrix}$$

The company is also interested in maximizing the happiness of its workers. The amount of happiness “earned” by a worker who spends the entire day producing a given product is given in Table 22. TABLE 22:

$$\begin{matrix} \text{Worker} & \text{Product}\\ \text{ } & \text{1} & \text{2} & \text{3}\\ \text{1} & \text{6} & \text{8} & \text{10}\\ \text{2} & \text{6} & \text{5} & \text{9}\\ \text{3} & \text{9} & \text{10} & \text{8}\\ \end{matrix}$$

Construct a trade-off curve between the objectives of maximizing total units produced daily and total worker happiness.

This excerpt is taken from an article titled “Caywood Looks for Convertibles,” which appeared in the January 13, 1992, issue of BondWeek, p. 7:

Caywood Christian Capital Management will invest new money in its $400 million high-yield portfolio in “busted convertibles,” double- and triple-B rated convertible bonds of companies . . . , said James Caywood, CEO. Caywood likes these convertibles as they trade at discounts and are unlikely to be called, he said.

What is a busted convertible?

Find a partner. Using the analogy, explain to your partner what might happen if all the decomposers disappeared from Earth.

With a partner or a group, toss a number cube $30$ times and record the number showing on each toss. Compare the histograms. Describe how the distribution of the mean changes as the number of tosses increaes.

Share your paper with your writing group or with a partner. Ask your reader(s) to focus especially on these points:

Can you follow everything I've said? Do you have questions?

At a later point in the story, Candide finally sees the error of Pangloss's teachings and renounces optimism, defining it as "the mania of maintaining that everything is well when we are wretched." Do you agree with Candide's statement? Why or why not? State your definition of optimism.

Get together with a partner or a group and talk about your responses to this true story. Be sure to refer to your journals.