ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 32

25) Which of the following features of preferred stock makes it
more like a debt than an equity instrum
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ACC 304 Final Exam Part 2 (2 Sets)
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1) On January 1, 2015, Piper Co. issued ten-year bonds with
a face value of $3,000,000 and a stated interest rate of 10%,
payable semiannually on June 30 and December 31. The bonds
were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10%

.386

Present value of 1 for 10 periods at 12%

.322

Present value of 1 for 20 periods at 5%

.377

Present value of 1 for 20 periods at 6%

.312

Present value of annuity for 10 periods at 10%
6.145