Answers
Answer:
Option A is the right answer.
Explanation:
Bonds seems to be debt security during which the lender is obliged to pay compensation at regular time intervals as well as pay the money back the balance of the shareholder at intellectual ability.
- Option B: The raising of new bonds diminishes underlying ownership within the company. Incorrect issuance of new equities diminishes the company's current ownership.
- Option C: Debenture bonds attached leverage on the assets guaranteed. Incorrect debentures represent short term loans.
- Option D: Bonds focuses on providing funding for equities. Incorrect since debt funding is provided by Bonds.
So that alternative A would be the appropriate choice.
Bonds are like IOUS with a promise to repay the amount borrowed, with interest, on a certain date. Thus, option A is correct.
Bonds appear to be a type of financial instrument where the lender is required to provide periodical payments of compensation as well as to reimburse the shareholder for their remaining amount at the investor's intellectual discretion.
An Iou-like financial obligation is a bond. By purchasing corporate bonds, investors are making a loan to the corporation issuing the connection. Bonds usually provide investors with a fixed rate of interest that is paid over a specified period of time at periodic times. In general, bonds are a less risky investment. Therefore, option A is correct.
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Related Questions
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What are some forces that influence environmental uncertainty? Which typically has the greatest impact on uncertainty? --- environmental complexity or environmental dynamism? Why?
The office product division in Hyacinth Company reported $11,250 net operating income with $75,000 average operating assets this year. The office product division has a new investment opportunity that would increase net operating income by $4,375 with $35,000 additional investment. 1. Which of the following statements is TRUE given that the company's minimum required rate of return is 10%? Multiple Choice: O Regardless of whether the division is evaluated on the basis of ROI or Residual income, the manager will not accept the new investment because it is bad for the company. O If the division is evaluated on the basis of Residual income, the manager of the office product division would not accept the new investment because it is bad for the company. O If the division is evaluated on the basis of Residual income, the manager of the office product division would accept the new investment because it is good for the division. O If the division is evaluated on the basis of ROI, the manager of the office product division would accept the new investment because it is good for the division. O If the division is evaluated on the basis of ROI, the manager of the office product division would not accept the new investment because it is bad for the company.
Answers
Answer:
D
Explanation:
Answers
Answer:
5.56%
Explanation:
Computation for holding-period return
Using this formula
Holding-period return =(Stock sales- Purchased Share + Dividend)/Purchased share
Let plug in the formula
Where,
Stock sales=92
Purchased Share=90
Dividend=3
Holding-period return=(92 - 90 + 3) / 90
Holding-period return=5/90
Holding-period return=0.0556×100
Holding-period return= 5.56%
Therefore the Holding-period return will be 5.56%
Answers
Answer:
Equals the increase in total benefits from consuming the unit.
Explanation:
This is defined as a maximum amount a consumer is willing to pay for an additional good or service.
It is also the additional satisfaction or utility that consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decreases as consumption of the good or service increases.
In the business world, the marginal benefit for producers is often referred to as marginal revenue.
Answers
Answer:
These revenues correspond to the portion of the related companies that do not consolidate in the Financial Statement because there is a minimum participation or there is no control over them (Example: They have control with the 51% of participation). However, if they have a minimal portion this means that there is a minority participation, the portion of the gain that corresponds to it is recorded in the financial statements.
Answers
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units
Answer:
Explanation:
The firm can sell 800 - (10 * 20) = 600 units at the $20 per-unit price.
The firm can sell 800 - (10 * 70) = 50 units at the $70 per-unit price.
For the Year Ended December 31, 2022
Sales revenue $ 145,200
Cost of goods sold 105,000
Gross profit 40,200
Selling expenses $10,800
Administrative expenses 3,600 14,400
Income from operations 25,800
Interest expense 1,800
Income before income taxes 24,000
Income tax expense 4,800
Net income $ 19,200
Additional data:
1. Depreciation expense was $10,500.
2. Dividends declared and paid were $12,000.
3. During the year equipment was sold for $5,100 cash.
This equipment cost $10,800 originally and had accumulated depreciation of $5,700 at the time of sale.
Prepare a statement of cash flows using the indirect method.
Answers
Answer:
statement of cash flows using the indirect method
Cash flow from Operating Activities
Cash Receipts from Customers $145,200
Cash Paid to Supplies and Employees ($108,900)
Net Cash from Operating Activities $36,300
Cash flow from Investing Activities
Proceeds from Sale of Equipment $5,100
Net Cash from Investing Activities $5,100
Cash flow from Financing Activities
Dividends Paid ($12,000)
Net Cash from Financing Activities ($12,000)
Movement during the period $29,400
Cash and Cash Equivalents at Beginning of the Period 0
Cash and Cash Equivalents at the End of the Period $29,400
Explanation:
Cash Receipts from Customers Calculation :
Sales revenue $ 145,200
Assuming Cash Sales
Cash Paid to Supplies and Employees Calculation :
Cost of goods sold $105,000
Add Selling Expenses $10,800
Add Administrative expenses $3,600
Less Depreciation ($10,500)
Cash Paid to Supplies and Employees $108,900
Final answer:
The statement of cash flows for Crane Company using the indirect method starts with the net income and then adjusts for non-cash items such as depreciation and the gain/loss from equipment sale. The net Cash provided by operating activities would be $17,700. This method helps understand the cash movements within the company.
Explanation:
To prepare a statement of cash flows for Crane Company for the year ended December 31, 2022 using the indirect method, you first start with the net income from the income statement and then make adjustments for changes in non-cash items, add back depreciation expense (a non-cash item) and account for the gain/loss from the sale of equipment. The prepared statement would look like this:
- Net Income: $19,200
- Add: Depreciation Expense: $10,500
- Add: Loss on Sale of Equipment (original cost - accumulated depreciation - sale price): ($10,800 - $5,700 - $5,100) = $0
- Less: Dividends Paid: $12,000
The net Cash provided by operating activities would be $17,700 ($19,200 + $10,500 - $12,000). This method helps in revealing the sources and uses of cash within the company.
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