Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>
Explanation:
The important point to be noted from the given question is that the bond is offered when the market rate is 6 percent.
So ,the bonds are said to selling at premium since the market rate has reduced from 6% to 5.5%
In this case it is right to say that -Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>
Answer:
Receipt of voting stock by all shareholders of the original corporations.
Explanation:
A consolidation is when two or more companies come together to form a new legal entity.
For example, Company A + Company B = Company C
Company A and Company B ceases to exist.
For consolidation to take place, the following has to occur :
1. Approval by the board of directors of each corporation.
2. Provision for an appraisal buyout of dissenting shareholders.
3. An affirmative vote by the holders of a majority of each corporation’s voting shares.
Dissenting shareholders do not receive voting stocks.
I hope my answer helps you.
<span>The first step in developing brand image for the Coffee Collective would be to develop positive brand awareness and an association of the brand in consumers' minds to give the brand an identity.
Brand image refers to the image of the company that is painted in the mind of the consumer/future consumer. It is important to have positive brand awareness and that the consumer believes there is value within the brand they are going to purchase from. This is even more important when you are referring to a brand that has a lot of market competition like food, drinks, and/or coffee because there are many options, you want the consumer to pick yours. </span>
Answer:
e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project
Explanation:
As per the basic concept of investment, "higher the risk, higher the return".
Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.
Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.
So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.
Answer: $65186.16
Explanation:
Since the individual is scheduled to receive $34,000 in two years and will then invest it for 7 more years at 7.5 percent per year. The amount that the person will have in 9 years will be:
FV = PV(1 + rate)^n
where,
PV = present value = $34000
Rate = 7.5% = 0.075
n = number of years = 7
FV = 34000 × (1 + 7.5%)^9
FV = 34000 × (1 + 0.075)^9
FV = 34000 × 1.075^9
FV = 34000 × 1.91724
FV = $65186.16
The amount in 9 years will be $65186.16