A disadvantage of bond financing is: Multiple Choice Bonds pay periodic interest and the repayment of par value at maturity. It allows firms to trade on the equity. Bonds do not affect owners' control. Interest on bonds is tax deductible. Bonds can increase return on equity.

Answers

Answer 1

Answer:

Bonds pay periodic interest and the repayment of par value at maturity.

Explanation:

The main disadvantages that businesses face when issuing bonds are:

bonds pay coupons either semiannually or annually, and the company needs to have the money to pay thembonds increase the risk of insolvency, AKA bankruptcy, which increases the cost of equitysince bonds require interest payments (coupons), they can potentially decrease return on equity


Related Questions

A firm's current profits are $650,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm:

Answers

Answer:

a. Value before dividends are paid out;

= Current Profits * ( 1 + opportunity cost of funds) / ( Opportunity cost - growth rate)

= 650,000 * ( 1 + 0.07) / 0.07 - 0.05)

= $34,775,000

= $34.775 million

b. Value after dividends

= Current Profits * ( 1 + growth rate) / ( Opportunity cost - growth rate)

= 650,000 * ( 1 + 0.05) / 0.07 - 0.05)

= $34,125,000

= $34.125 million

Which of the following describes the purpose of the Federal Deposit
Insurance Corporation (FDIC)?
O A. To manage the economy by controlling the money supply.
B. To set the required reserve ratio for banks in the United States.
C. To prevent the demand for withdrawals from rising above 10
percent
D. To make sure customers don't lose money if their bank fails.

Answers

Answer:

D. To make sure customers don't lose money if their bank fails.

Explanation:

The Federal Deposit Insurance Corporation, or simply the FDIC,  is an independent agency whose mandate ensures customers do not lose their deposits should a bank or any other financial institution fails. The FDIC insures customer deposits up to a stated limit per person, per bank, per each account category.  The insurance coverage is automatic to all account holders in an FDIC insured bank.

The Federal Deposit Insurance Corporation is financed by the insurance premiums paid by banks and other institutions. The FDIC’s scope covers checking accounts and savings such as money market accounts and certificates of deposit (CDs).

D is the answer!

source : ay p ex

The effect of higher wages on the individual supply of labor is ________ and the effect of higher wages on the market supply of labor is ________. ambiguous; to decrease the quantity supplied. to decrease the quantity supplied; ambiguous to increase the quantity supplied; ambiguous ambiguous; to increase the quantity supplied

Answers

No idea for this work look confused

Swifty Corporation recorded operating data for its shoe division for the year. Sales $1900000Contribution margin 480000Controllable fixed costs 180000 Average total operating assets 960000 How much is controllable margin for the year? a) $480000 b) $300000 c) 25% d) 50%

Answers

Answer:

b is correct option I did this

Answer: b) $300000

Explanation:

Controllable margin controls revenues and cost to show that an operation  process  is balanced and controlled. To check a  manager's performance, The Controllable margin is evaluated and is defined as the contribution margin minus  the controllable fixed cost.

Given

Controllable fixed cost = $ 180,000

Contribution margin =$480, 000

Controllable margin  =   Contribution margin - Controllable fixed cost

=$480,000- 180,000

= $300,000

First to respond with what points are and what they do on Brainly gets 100 points.

Answers

Answer:

You need points in order to ask questions. You get points by answering questions. It's the cycle of.... help to be helped, I guess.

Answer:

on brainly i help people and get answers

Users need to use points to post a question

Explanation:

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?


WACC: 12.25%

Cash flows -

Year 0: - $850
Year 1: $300
Year 2: $320
Year 3: $340
Year 4: $360

Answers

Answer:

MIRR = 17%

Explanation:

The computation of the MIRR of a project is shown below:

Year Cash flows ( in $)

0       -850

1        300

2       320

3       340

4       360

 

WACC 12.25%

MIRR 17%

We simply applied the MIRR over the excel

We simply applied the attached formula so that the correct percentage could come

And, the same is to be considered

PLEASE ANSWER

what is the tort in the situation above?

Answers

TYLER

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Lockard Company purchased machinery on January 1, 2020, for $80,000. The machinery is estimated to have a salvage value of $8,000 after a useful life of 8 years. A) Compute 2020 depreciation expense using the straight-line method. B) Compute 2020 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2020.

Answers

Answer:

a) $9,000

b) $3,000

Explanation:

The calculation of the depreciation expense for each of the following cases  

a)

As we know that  

= (Purchase cost of machinery - estimated salvage value) ÷ (useful life)

= ($80,000 - $8,000) ÷ (8 years)

= ($72,000) ÷ (8 years)  

= $9,000

b)  Since the asset purchased as on Sep 1, 2020 so the depreciation expenses would be charged for four months i.e. From September to December.

Also at the same time we assume the books are closed as on Dec 31,2020

Therefore, the depreciation expense is

= $9,000 × 4 months ÷ 12 months

= $3,000

A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company’s common stock is .59. a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital

Answers

Answer: 9.81%

Explanation:

Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)

Cost of Equity = Risk free rate + beta * Market risk premium

= 8% + 0.59 * 6%

= 11.54%

Cost of capital = (8% * 49%) + (11.54% * 51%)

= 9.81%

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of a(n):_______

a. hostile takeover.
b. merger.
c. partnership
d. acquisition

Answers

Answer:

d. acquisition

Explanation:

Acquisition can be defined as the process in which a company or business firm purchases all of another company so as to build on its weaknesses or strengths.

This ultimately implies that, after the acquisition of a company's shares or all of the company, the acquiring (purchasing) company gains a total control of the acquired company and as a result it is saddled with the responsibility of controlling, maintaining, managing and financing of the company.

In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of an acquisition.

Founder Chip Conley says it’s not money, but the "other stuff," known as _______, that keeps employees happy.

Answers

Answer: e. nonfinancial rewards

Explanation:

Money is not all that it takes to make employees happy because studies have shown that employees require a mix of both financial rewards as well as other types of rewards to keep them happy and motivated.

These other rewards are called Non-financial rewards and as already mentioned, do not involve money but can go a long way in keeping employees satisfied. Some examples are: interest in employee growth by leaders and offering employees the opportunity to lead projects.


__ involves having a variety of investments in your __

Answers

Answer

Diverting, and Savings

Explanation:

That dummy said say hey. Like that's the answer what a loser. I hope this is right sorry if its wrong that's what i got.

Answer:

Diverting involves having a variety of investments in your savings.

Explanation:

Noma plans to save $3,400 per year for the next 35 years. If she can earn an annual interest rate of 9.2 percent, how much will she have in 35 years? a) $716,300.24 b) $119,000.00c) $767,464.54 d) $83807128 e) $734,09652

Answers

Answer:

c) $767,464.54

Explanation:

The computation of the future value of an annuity is shown below:

As we know that

Future value of annuity F =  Payment made × ((1 + rate of interest)^t - 1) ÷ r ate of interest

= $3,400 × (1.092^35 - 1) ÷ 0.092

= $3,400 × 225.7249

= $767,464.54

Hence, the future value of an annuity is $767,464.54

Therefore the correct option is c.

scientific management.

management by objectives (MBO).

the program evaluation and review technique (PERT).

programmed management.

Answers

Answer:

im bored soo hi

Explanation:

In a monopolistically competitive industry, price:______

a. is most likely a bit higher than the competitive market price because of the cost of variety.
b. will exceed the monopoly price due to the destructiveness of competitive forces.
c. will be lower than the competitive price due to cost savings.
d. is contingent on the behavior of other firms because they are mutually interdependent.

Answers

Answer:

a

Explanation:

In a monopolistically competitive industry, price is most likely a bit higher than the competitive market price because of the cost of variety.

In a monopolistically competitive market, firms tend to set their prices to be higher than those of the marginal cost. This invariably translates to the fact that market is never really able to be productively efficient.

Firms in monopolistically competitive markets tend to wield the same power, since they're all price makers, they have a low degree of market power.

Which are Career and Technical Student Organizations? (Check all that apply.)
Business Professionals of America
American Association of School Administrators
American Chemical Society
UDECA
Future Business Leaders of America
FFA
Skills USA
FCCLA
Will give brainliest! 50 points!!!

Answers

Answer:

Answer:

Business Professionals of America

American Association of School Administrators

DECA

Future Business Leaders of America

Explanation:

Hope it helps your question!

Answer:

A,B,D,E

Explanation:

Calculate the payback period for the following investment: A machine costs $100,000 with installation costs of $15,000. Cash inflows are expected to be 26,000 per year for the next seven years. greater than
A. 6 years.
B. 3.85 years
C. 5 years
D. 4.42 years

Answers

Answer:

D. 4.42 years

Explanation:

115000 = 26000x

115000/26000 = x

4.42 = x

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,200 and payment terms of 2/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at:
a. $3,038.
b. $6,200.
c. $6,076.
d. $6,324.

Answers

Answer:

c. $6,076

Explanation:

Calculation for what Alison should record the purchase

Purchase=$6,200 ×(100%-2%)

Purchase=$6,200 ×98%

Purchase=$6,076

Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076

For a continuous review​ policy, 74% cycle service​ level, lead time equals 1.5​ weeks, and standard deviation of weekly demand​ = 200, how many units of safety stock should be​ held? A. 192 B. 189 C. 157 D. 231 E. 181 F. 222

Answers

Answer:

C. 157

Explanation:

Safety stock = Z-score *  Standard deviation of average demand * √lead time

Z-score for 74 % service level is 0.643

Standard Deviation of demand is 200

Lead Time = 1.5 weeks

Safety stock = 0.643 * 200 * √1.5

Safety stock = 0.643 * 200 * 1.224745

Safety stock = 157.502

What term is used to refer to the probability that an accounting error or irregularity is detected and reported?

Answers

Answer:

Audit quality

Explanation:

The audit quality represents the important elements that increased the quality audits done by the auditor in consistent way. Here the responsibility of performing the quality audit is of the auditor as he or she is fully responsible to do the audits of various firms. The main motive of this audit is to be identify the error or irregularity of a firm.

Therefore the given situation represents the audit quality

The degree of general importance that working has in the life of an individual at any given point in time is called ________.

a. intrinsic motivation
b. extrinsic motivation
c. self-actualization
d. work centrality

Answers

Answer: Work centrality

Explanation:

The degree of general importance that working has in the life of an individual at any given point in time is called work centrality.

Work centrality has to do with how work plays a vital role in the lives of individuals. It is believed that work is important as it helps one meet the financial obligations through the revenue earned while working and other important things.

Answer:

 work centrality  

Explanation:

Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0

Answers

Answer:

$400 billion

Explanation:

The computation on the impact on total checkable deposits is shown below

= Increased in the bank reservce ÷ reserve requirement

= $60,000,000,000 ÷ 15%

= $400 billion

Therefore the impact on the total checkable deposits in the case when the bank reserves rises is $400 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The quantity demanded of good X falls by 20% and, in response, your income goes down by 10% and, the income elasticity of demand would be:

Answers

Answer: Income Elasticity  of demand = 2

Explanation:

Income Elasticity  of demand  shows the responsiveness of the quantity demand for a good or service is to any  change consumers  income. it is calculated as

Income Elasticity  of demand = Percentage change in Quantity / Percentage change in price

=20%/ 10% =  2

Income Elasticity  of demand = 2

therefore we can say the good is a normal good sinve it has a positive income elasticity of demand which means that there will be an increase in demand as consumer income increases and a decrease in demand as consumers income decreases.

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This site shows the occupations with the highest expected growth rates over the period 2014 - 2024. Which occupation is expected to grow at the highest percentage increase? Is this occupation also expected to have the largest increase in the number of jobs? Explain.

Answers

According to the information provided by the graph, it can be inferred that the occupation with the highest percentage of growth is wind turbine service technicians with 108.0%. While the one with the greatest increase in jobs is Home Health aides with 348.4.

How to interpret the information in the table?

In the table there are different columns and rows that organize the information. To know a specific data we must identify what each row and column corresponds to.

The columns (horizontal) correspond to the different jobs that are projected to increase in the period of time 2014 - 2024.

On the other hand, the (vertical) rows have different data such as:

Number of jobs.Change between 2014 and 2024.Average annual salary.Education required for that job.

According to this information, it can be inferred that the employment with the highest percentage of increase is that of wind turbine service technicians with 108.0%.

However, the air turbine technician job is not the one with the largest variation in job titles. The one with the greatest variation in jobs employment is Home Health aides with 348.4.

Learn more about employment in: https://brainly.com/question/239270

1. The occupation that is expected to grow at the highest percentage increase between 2014 and 2024 is Wind Turbine Services (technicians) with some college education.  It has a percentage change of 108%.

2. However, this occupation is not also expected to have the largest increase in the number of jobs.

Instead, the occupation with the largest increase in the number of jobs between 2014 and 2024 is Home Health Aides (with no formal educational credential).

What is occupation?

Occupation refers to the type of work a person does to earn a living.

For example, working as a Wind Turbine Service technician is an occupation.

Other occupations include school teaching, commercial driving, nursing practice, and working as a home health aide.

Thus, the occupation that is expected to grow at the highest percentage increase is Wind Turbine Services (technicians) while the occupation with the largest increase in the number of jobs is Home Health Aides.

Learn more about occupations at https://brainly.com/question/21414122

Colleges often rely heavily on raising money for an "annual fund" to support operations. Alumni are typically solicited for donations to the annual fund. Studies suggest that the graduate’s annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, positive, linear relationship between these variables. In the studies described:

Answers

Answer: size of alum's donation to the annual fund is the response variable

Explanation:

Considering the annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, then the study indicated that the size of alum's donation to the annual fund is the response variable

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________ price.a. margin priceb. costumer value pricec. transfer priced. break even pricee. original price

Answers

Answer:

c. transfer price

Explanation:

Transfer price is a charge that occurs when one entity charges another entity under the same owner.

So the given scenario where one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, it is called transfer price.

Transfer prices are usually reported in financial statements so they can be monitored effectively.

Standard price on the other hand is sum total of all cost required to produce a product. It can be used effectively to make a budget or make future estimates.

Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 4.50%

Answers

Answer and Explanation:

The computation of the equivalent taxable yield is shown below:

For zero = 4.50%

For 10% =  4.50 ÷ 0.90 = 5%

For 20% =  4.50 ÷ 0.80 = 5.625%

For 30% =  4.50 ÷ 0.70 = 6.43%

For 10%, for 20% and for 30% it would reduced the tax brackets by the same

like

for 10%

= 1 - 0.10

= 0.90

The Same applied for other ones

Therefore the above should be the answer

What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 130 shares of Stock B that sell for $86 per share?

Answers

Answer:

Stock A = 0.3787

Stock B= 0.6212

Explanation:

The first step is to calculate the total value

= 145(47) + 130(86)

= 6,815 + 11,180

= $17,995

Therefore the portfolio weights of each stock can be calculated as follows

Stock A = 145(47)/17,995

= 6815/17,995

= 0.3787

Stock B = 130(86)/17,995

= 11,180/17,995

= 0.6212

Motor Sales sold its old office furniture for $9000. The original cost was $17,000, and at the time of sale, accumulated depreciation was $14,000. What is the effect of this transaction?

a. gain of $9000
b. gain of $6000
c. loss of $6000
d. loss of $9000

Answers

It’s B. Gain of $6000

I hope this helped out! Have a nice day :)

Based on the given information, the effect of this transaction is a gain of $6000. Thus the correct option is B.

What is depreciation?

The continual loss of an asset's worth over time as a result of damage, obsolescence, or other circumstances is known as depreciation. The cost of an asset is divided throughout the asset's useful life using this accounting technique.

To determine the effect of this transaction, we need to calculate the carrying value of the furniture at the time of sale.

Carrying value = Original cost - Accumulated depreciation

Carrying value = $17,000 - $14,000

Carrying value = $3,000

Given that, the furniture was sold for $9,000.

Gain = Sale price - Carrying value

Gain = $9,000 - $3,000

Gain = $6,000

Therefore, the answer B is appropriate.

Learn more about depreciation, here:

https://brainly.com/question/15681635

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Harrold is the project manager for his organization and he has seven people on his project team. Who is responsible for executing the project plan and creating the project deliverables?A. Project lead.B. Project manager and the project team.C. Project manager.
D. Project team.

Answers

Answer: D. Project team

Explanation:

The project team is responsible for executing the project plan and creating the project deliverables. They are also in charge of contributing to the success of the project by making sure that the project objectives are achieved.

Each team mate has a specific role that he or she is assigned and the team should execute the tasks assigned to them successfully.

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