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3 years ago

5

When a firm plans to issue bonds, it creates a(n) ______, which is a legal document that explains its obligations to bondholders

?

1 answer:

kobusy [5.1K]3 years ago

6 0

When a firm plans to issue bonds, it creates a(n) -prime-, which is a legal document that explains its obligations to bondholders?

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ou believe that you can earn 2% more on your portfolio if you engage in full-time stock research. However, the additional tradin

oksian1 [2.3K]

Answer:

C. $12,000

Explanation:

additional earnigns for active management:

800,000 x 0.02% = 16,000

<em><u>expected </u></em>active management cost:

800,000 x 0.5% = 4,000

net gain: 12,000

At most, we can spend 12,000 dollars.

Up to this point, the expense are cover by the additional return. bove this threshold the fund will incur in losses from the active management

8 0

3 years ago

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because: a.monitoring of managers located in

mars1129 [50]

Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:

monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
monitoring of managers located in foreign countries is more difficult.
.MNCs are relatively large.
foreign subsidiary managers raised in different cultures may not follow uniform goals.

<h3>What are multinational corporations?</h3>

Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.

Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow uniform goals.

Read more on human capita development here:

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8 0

2 years ago

Compute the annual dollar changes and percent changes for each of the following accounts. (Round percent change to one decimal p

elixir [45]

Answer and Explanation:

The computation of annual dollar changes and percent changes for each of the following accounts is shown below:-

Particulars 2015 2014 Changes in dollar Percent change

a b c = (a - b) d = c ÷ b

Short term

investments $380,168 $239,377 $140,790 58.82%

Accounts

receivable $102,276 $105,903 -$3,627 -3.42%

Notes

payable 0 $93,973 -$93,973 -100%

4 0

3 years ago

On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 20

Step2247 [10]

Answer and Explanation:

The Journal entries are shown below:-

1. Right of use assets Dr, $371,049

To Lease payable $371,049

(Being lease is recorded)

Working note:-

Present value of periodic lease payment $354,595

($100,000 × (present value of ordinary annuity of $1, n = 4, i = 5%)

($100,000 × 3.54595)

Present value of an estimated cash payment under a residual value

$16,454 (Present value $1, n = 4, i = 5%)

Lease payment = $354,595 + $16,454

= $371,049

2. Amortization expense Dr, ($371,049 ÷ 4 years) $97,262

To Right of use assets $97,262

(Being related to the lease is recorded)

3. Interest expense Dr, (5% × $371,049) $18,552

Lease payable Dr, $81,448

To annual payment of cash $100,000

(Being annual payment of lease is recorded)

3 0

3 years ago

Security markets provide liquidity:________

Keith_Richards [23]

Answer:

C. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale

Explanation:

Naturally, a security market is seen to permit you do more with your actual savings within your saving periods. It is seen to aid over the counter trading which is seen to occur directly between the trader and the broker. In certain cases that can be termed marketable securities, it is seen to occur due to the maturities are seen to tend to be less than one year; and at such, the buyer/broker rates at which they can be bought or sold have little effect on prices.

5 0

3 years ago