To secure funding to convert their service vehicle fleet to hybrid technologies. MGL Industries is issuing green bonds to investors. You plan to buy $1 million of these bonds. This is how much you will raise by selling a vacation home that you acquired 25 years ago for$140,000. (a) At What rate has the value of the vacation home increased? (b) Write a short description of green bonds. How are they different from normal corporate, revenue, and debenture bonds? As an investor, would you buy green bonds? Explain.

Quiet Running, a closely held LLC, produces electric cars. It recently secured the rights to a patent that will allow it to produce such cars with a cruising range of nearly 500 miles. In order to meet the anticipated demand, it needs a large amount of capital to set up a new factory. You are the corporate counsel and are attending a board meeting when one of the company’s financial advisors suggests that the company “go public” with their stock. What advice would you give as to the potential impact of doing so on the company’s organizational form?

What are the implications of the efficient market hypothesis for corporate managers?

A study of the pay of corporate CEOs (chief executive officers) examined the cash compensation, adjusted for inflation, of the CEOs of 104 corporations over the period 1977 to 1988 . Among the data are the average annual pay increases for each of the 104 CEOs. The mean percent increase in pay was 6.9%. The data showed great variation, with a standard deviation of 17.4%. The distribution was strongly skewed to the right.

What are the degrees of freedom? When the exact degrees of freedom do not appear in Table C, use the next lower degrees of freedom in the table.

Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2020. All the bonds are classified as available-for-sale and are purchased at par. At year-end, market interest rates have declined, and the fair value of the bonds is now$10,600,000. Interest is paid on January 1. Prepare journal entries for Stave Company to (a) record the transactions related to these bonds in 2020, assuming Stave does not elect the fair option; and (b) record the transactions related to these bonds in 2020, assuming that Stave Company elects the fair value option to account for these bonds.

The newest law firm in town paid a total of $\$ 33,860$ to a marketing firm for the research and development of the firm's corporate trade name and trademark. From this budget, a Web-site developer was paid $\$ 9,475$ for her creative work on the project. Her salary was what percentage of the entire amount?

Division When solving problems that involve percents, it is usually a matter of dividing one value by another.

Starting Hints To solve this problem, divide the salary of the Web-site developer by the total amount paid to the marketing firm to determine what percent the developer's salary was of the total.

What are some characteristics of a formal corporate culture?

Create multiple-choice test questions for each content and academic vocabulary term. Content Vocabulary: entrepreneurship, entrepreneurs, franchise, sole proprietorship, unlimited liability, partnership, general partnership, limited partnership, limited liability, corporation, stockholders, foreign corporation, limited liability company (LLC), Doing Business As (DBA), Articles of Incorporation. Academic Vocabulary: indication, domestic, community, vary.

Compare tax on individual and corporate income.

An investor is in a 30 % combined federal plus state tax bracket. If corporate bonds offer 9 % yields, what must municipals offer for the investor to prefer them to corporate bonds?

The rate at which an epidemic spreads through a community with 2,000 susceptible residents is jointly proportional to the number of residents who have been infected and the number of susceptible residents who have not. Express the number of residents who have been infected as a function of time (in weeks) if 500 residents had the disease initially and 855 residents had been infected by the end of the first week.

DAE Parts Shop began business on January 1, 2019. The corporate charter authorized issuance of 20,000 shares of $5 par value common stock and 5,000 shares of$10 par value, 5% cumulative preferred stock. DAE issued 12,000 shares of common stock at $25 per share on January 2, 2019. What effect does the entry to record the issuance of stock have on total stockholders’ equity?

a. increase of$340,000

b. increase of $300,000

c. increase of$150,000

d. increase of $120,000

Suspect Company issued $600,000 of 9 percent first mortgage bonds on January 1, 20X1, at 103. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1 . Prime Corporation purchased$400,000 of Suspect's bonds from the original purchaser on January 1, 20X5, for $396,800. Prime owns 60 percent of Suspect's voting common stock.

Required

Prepare the worksheet consolidation entry or entries needed to remove the effects of the inter-corporate bond ownership in preparing consolidated financial statements for 20X6.

Match (by letter) the following terms with their definitions. Each letter is used only once.

$$\begin{matrix} \text{Terms}\\ \hline \text{\_\_\_\_\_ 1. Publicly held corporation.}\\ \text{\_\_\_\_\_ 2. Organization chart.}\\ \text{\_\_\_\_\_ 3. Articles of incorporation.}\\ \text{\_\_\_\_\_ 4. Limited liability.}\\ \text{\_\_\_\_\_ 5. Initial public offering. }\\ \text{\_\_\_\_\_ 6. Double taxation.}\\ \text{\_\_\_\_\_ 7. S corporation.}\\ \text{\_\_\_\_\_ 8. Limited liability company.}\\ \end{matrix}$$

$$\begin{matrix} \text{Definitions}\\ \hline \text{a. Shareholders can lose no more than the amount they invest in the company.}\\ \text{b. Corporate earnings are taxed twice-at the corporate level and individual shareholder level.}\\ \text{c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation.}\\ \text{d. Traces the line of authority within the corporation.}\\ \text{e. Allows for legal treatment as a corporation, but tax treatment as a partnership.}\\ \text{f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE).}\\ \text{g. The first time a corporation issues stock to the public.}\\ \text{h. Describes (a) the nature of the firm's business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.}\\ \end{matrix}$$