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mestny [16]
2 years ago
15

For investors, changes made to the tax code by the government are known as a form of:______.

Business
1 answer:
uysha [10]2 years ago
8 0

For investors, changes made to the tax code by the government are known as a form legislative risk, which results from changes in law.

Legislative risk refers to the possibility that government legislation or regulations will significantly alter the business prospects of one or more companies. These changes may have a negative impact on the firm's investment holdings. The legislative risk may occur as a direct result of government action or by changing customer demand patterns. Investors rarely complain about preferential treatment and bailouts for specific industries, possibly because they all work with the secret hope of profiting from them.

What subsidies and tariffs can give an industry in terms of competitive advantages, regulation and taxation can take away from many others. They can send shockwaves around the world and destroy companies and entire industries with a single law, subsidy, or switch of the printing press. As a result, many investors consider legislative risk to be a major factor when evaluating stocks.

Learn more about legislative risk here:

brainly.com/question/9230331

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simmons company issued four-year bonds with a par value of $1,000,000. the bonds have a 4% coupon rate and interest is payable s
VLD [36.1K]

Simmons Company issued four-year bonds with a $1,000,000 par value. Interest is due semi-annually on the bonds, which have a 4% coupon rate. The market interest rate is 6%. $1002402.88 must Simmons pay investors in interest on a semi-annual basis.

The Indeed Editorial Team is made up of a brilliant and diverse group of writers, researchers, and subject-matter experts who use Indeed's data and insights to provide helpful advice for navigating your career path.

Understanding how loans and investments operate is essential to laying a solid financial foundation for both you and your company. How interest is calculated is one of the key aspects of loans and investments. Your loans and investments may have simple interest or compound interest terms. You will discover what it implies, why it matters, and how to compute interest that is compounded semiannually interest in this post.

Learn more about semiannually interest here

brainly.com/question/14969931

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7 0
10 months ago
In their simplest form, bonds are pure ________. a) debt b) equity c) hybrid security d) current assets
melomori [17]

In their simplest form, bonds are pure a) debt.

<h3>What are bonds?</h3>
  • A bond may be a debt security, almost like an IOU.
  • Borrowers issue bonds to boost money from investors willing to lend them money for a certain amount of time.
  • When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
  • In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
<h3>What sorts of bonds are there?</h3>

The main types of bonds are:

  • Investment-grade
  • Corporate bonds
  • Municipal bonds
  • High-yield bonds

To learn more about bonds: brainly.com/question/17405470

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5 0
1 year ago
A store manager must decide how many rug cleaners to rent to customers. The manager estimates that the first would yield $200 a
Harrizon [31]

Answer:

The store manager must decide to buy 3

Explanation:

Given that:

  • The first:  $200 a year
  • The second $150
  • The third $75,
  • The fourth $50
  • Interest rate is 12 percent
  • Investment: $500

As we know that the rate of return will be: Income / Investment

So the rate of return of:

  • The first:  $200 / $500 = 0.4 = 40%
  • The second $150 / $500 = 0,3 = 30%
  • The third $75 / $500 = 0.15 = 15%
  • The fourth $50 / $500 = 0.1 = 10%

Only three rug cleaners have the rate of return greater than the interest rate so the store manager must decide to buy 3

5 0
3 years ago
Q 4.35: McGinnis Construction is a cash-basis company with a fiscal year-end of June 30. McGinnis’ employees earn a normal weekl
hjlf

Answer: Understatement, $30,900

Explanation:

There will be an UNDERSTATEMENT of McGinnis' net income for the most recent fiscal year of $30,900.

The Understatement arises because as of year end which is June 30th, McGinnis were not paid for their services that cost $40,900 and instead will only be paid on the 8th of the next month so it was not accounted for in the net income.

The reason the net income understatement is $30,900 and not $40,900 is because McGinnis will still have to account for the payment to it's employees. If in a five day week they earn $12,500, that would mean that they earn $2,500 a day (12,500/5). Seeing as June ended on a Thursday, that is a 4 day week which means $2,500*4= $10,000.

That $10,000 will reduce the net income by that amount.

The net effect is a $30,900 UNDERSTATEMENT.

4 0
3 years ago
Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. T
rodikova [14]

Answer:

The correct answer is (a)- Integrated cost leadership/differentiation.

Explanation:

Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.

8 0
3 years ago
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