Every winter, bonnie’s boutique hires 10 seasonal employees to work from november 15 through january 15. the workers are paid 25% of their total salary in november, 50% of their total salary in december, and the remaining 25% of their total salary in january. bonnie’s boutique recognizes all salary expenses related to these workers at the end of january. in this scenario, bonnie’s has

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?

Afamily wishes to save for future college expenses. which financial tool should the family invest in?