When a bond issuer makes a cash payment to bondholders to induce conversion how is this...
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When a bond issuer makes a cash payment to bondholders to induce conversion how is this payment recorded? It increases paid-in capital. It is capitalized to bonds payable. It is expensed. It creates a liability. D Question 12 2.5 pts Why are restrictions placed on repurchases and dividend payments? Loan covenants place restrictions so lenders get paid in the future. The FASB places restrictions to guarantee smooth future dividend payments. O Investors restrict payments to build up earnings. The SEC does not let a firm pay out more than 5% of retained earnings. When a bond issuer makes a cash payment to bondholders to induce conversion how is this payment recorded? It increases paid-in capital. It is capitalized to bonds payable. It is expensed. It creates a liability. D Question 12 2.5 pts Why are restrictions placed on repurchases and dividend payments? Loan covenants place restrictions so lenders get paid in the future. The FASB places restrictions to guarantee smooth future dividend payments. O Investors restrict payments to build up earnings. The SEC does not let a firm pay out more than 5% of retained earnings.
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Answer 1 It is expensed Explanation At time of conversion ... View the full answer
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date:
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