Please hlep me ASSP 1. Mack Pharmaceutical issued bonds at a premium. Which of t

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Question

Please hlep me ASSP

1. Mack Pharmaceutical issued bonds at a premium. Which of the statements below is true of the premium?

a. It will increase bond interest expense throughout the bond term.

b. It represents a reduction in the cost of borrowing.

c. It is an extra payment the bond issuer must pay to the bond investors.

d. It is a reduction of the interest payments the bond issuer must pay to bond investors.

2. Which one of the following is considered an advantage of the corporate form of organization?

a. Unlimited liability of stockholders

b. Separation of ownership and management

c. Continuous life

d. Government regulation

3. Which one of the following is not one of the functions that impact the market value of bonds?

a. The length of time until the amounts are received

b. The market interest rate

c. The dollar amounts to be received

d. The method of amortizing the bond interest

4. Which of the following transactions affects the Retained Earnings account?

a. Declare a cash dividend

b. Acquire treasury stock

c. Pay a cash dividend

d. Stock split

5. Harvey Food Store issued common stock with a par value of $1 per share. What is par value?

a. The anticipated selling price of each share of stock

b. The legal capital that must be retained in a company for the protection of shareholders

c. The amount assigned to each share of stock in a company’s corporate charter

d. The amount to be debited to Common Stock for each share of stock issued

1)Option B. As the bond is issued at premium meaning the YTM is lesser than coupon of the bond

2)option B. As both the owners and management are seperated

3)option D

4)option A.Declare a cash dividend by this retained earning decreased and current liability increased

5)Option C.