Answer:
The interest rate on a 10-year corporate bond for a company with AA rating will be higher than for a 10-year bond for a company with a BBB- rating.
True
The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
<h3>What do you mean by extending credit to customers?</h3>
The method of extending credit to customers permits them to buy items and services and pay for them later on. Offering credit is usually a win-win for each trader and buyer.
Customers have greater buying strength and have a tendency to shop for greater in the event that they are not restrained to the cash they have got at the time of the sale.
The missing information from the above question is given below:
increase
be less than
exceed
Thus, The disadvantage of extending credit to customers is that the cost may <u>exceed </u>the additional sales revenue received through credit transactions. hence, Option C is the correct statement.
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APV and WACC are similar in that they reflect the tax benefit of leverage.
<h3>How to illustrate the information?</h3>
It should be noted that the adjusted present value (APV) is used to value a project.
The weighted cost of capital (WACC) implies the rate at which a company is expected to pay all its security holders in order to finance its assets.
In conclusion, APV and WACC are similar in that they reflect the tax benefit of leverage.
<u>Complete question:</u>
APV and WACC are similar in that they reflect the tax benefit of ...........
a. leverage
b. relocation
c. equity
d. waiting
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<u>Index of industrial production</u> is considered to be a coincident economic indicator
An economic indicator is a piece of data that analysts use to analyze existing or potential investment opportunities. These data are often of a macroeconomic scale. The general health of an economy can also be determined using these measures.
Economic indicators can be anything an investor wants them to be, but certain information made public by the government and nonprofits has gained widespread attention. Indicators of the economy can be categorized or grouped. The majority of these economic indicators have a predetermined publication schedule. The industrial production index is regarded as a cogent economic indicator.
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Fees charge = 2%
Investment worth = $500,000
Amount due = 2/100 * 500,000 = 10,000
The amount Andrew will receive as compensation is $10,000.