1. Southgate company has current assets of 3 million of which 750000 are account receivable. its current liabilities total 2 million of which 500000 are accounts payable and 100000 are wages payable. Southgate net credit is: (a) 150000 (b)250000 (c)650000 (d)1000000
2. How much would you pay for a bond that offered you 600 per year indefinitely if you wanted a 12% return? (a)4800 (b)5000 (c)6750 (d)7575
3. $12 preferred stock (a) has a face value of $12 (b)pay a $12 annual dividend (c)is issued for a price of $12 (d) pays investors $12 when it matures
4. Schwarzer corporation has 10000 shares authorized of which 6000 are issued and 1000 are treasury shares. How many shares are outstanding? (2) 5000 (b)6000 (c)7000 (d) 100000
5. Ajunk bond is another name for?