Litke corporation issued at a premium of $10,000 a $200,000 bond issue convertible into 4,000 shares of common stock (par value $20). at the time of the conversion, the unamortized premium is $4,000, the market value of the bonds is $220,000, and the stock is quoted on the market at $60 per share. if the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds?

When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?

Mystic bottling company bottles popular beverages in the bottling department. the beverages are produced by blending concentrate with water and sugar. the concentrate is purchased from a concentrate producer. the concentrate producer sets higher prices for the more popular concentrate flavors. a simplified bottling department cost of production report separating the cost of bottling the four flavors follows: