Answer:
a. A Ba1 corporate bond <u>2 (not investment grade)</u>
b. A ten-year BBB- corporate bond with a YTM of 7% <u>3 (medium risk but still investment grade)</u>
c. A secured loan from Argosy Gaming, which is a B- rated firm <u>4 (less risky since it is backed by a collateral)</u>
d. A senior subordinated bond from Argosy Gaming <u>1 (highest risk)</u>
Explanation:
There are two major bond rating agencies in the US: Moody's and Standard & Poor's.
Their rankings are very similar, although the letters vary a little:
AAA: safest
AA: low risk
A: low risk
BBB: medium risk
BB: a little bit more riskier
B: risky
CCC: very high risk
CC: even riskier
C: riskiest
D: junk, in default
Answer:
The economic principle governing the congressional package is known as economic stimuli.
Explanation:
The phenomenon of Economic stimuli is described as a change in economic or fiscal policy to enable economic growth in an economic slump. Some of the other activities may include dropping interest rate or quantitative easing.
Is a microeconomics law that states, all other factors being equal, as the price of a good or service increases, consumers demand for the good or service will decrease, and vice versa
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line." Logan incurred $180,000 in fringe benefits costs last year.
First, we need to calculate the allocation rate based on number of employees:
Estimated allocation rate= total estimated fringe costs for the period/ total amount of allocation base
Estimated allocation rate= 180,000/30= $6,000 per employee.
Now, we can allocate fringe costs to the A-line:
Allocated fringe costs= Estimated Estimated allocation rate* Actual amount of allocation base
Allocated fringe costs= 6,000*10= $60,000
Capital Investment. Capital investment includes spending money on equipment, factories, etc that will help the business be productive in the future.
