The disadvantages of debt to the corporation include all but which of the following? A. Debt may be paid back with "cheaper" dollars.
B. Interest and principal payments must be met regardless of performance results.
C. Indenture agreements may place burdensome restrictions on the firm.
D. Too much debt may depress the firm's stock price.

In the context of your career choice, your own business skills cannot influence the level of your personal financial success. a. true b. false

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.

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is