Horace corporation has $200,000 of convertible 5% bonds. each $500 bond is convertible into 50 shares of common stock. the bonds were sold at par and are currently trading at par, and the required return on nonconvertible bonds of similar risk is 11%. common stock is trading at $23 per share. when calculating debt to equity ratio: convertible bonds should be treated as debt convertible bonds should be excluded from debt but not included in equity convertible bonds should be treated as equity half the convertible bonds should be treated as debt, and the other half as equity

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?