Answer:
corporations can obtain financing at lower rates
Explanation:
Convertible debts are a type of long term capital financing that has the option of converting the debt into stock or equity. Corporations issue convertible debts to balance equity and liabilities.
A convertible debt will usually have a lower interest because the holder of the debt has the option of converting it to stock. A conversion occurs after a certain period. Investors willingly opt for convertible debts as the conversion aspect makes them less risky. Companies will opt for them because they are less expensive in interest payments, hence a cheaper form of obtaining capital.
Answer:
d. salary
Explanation:
There are many different sources of income. Usually, most of an adult's income comes from salary.
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Answer:
B.the law of increasing opportunity cost
Explanation:
PPF is graphical representation of product combinations that an economy can produce, given resources & technology
It is downward sloping because - given same resources & technology, one good 's production can be increased by decreasing production of other good.
Resources are assumed to be unequally efficient in production of resources. Shifting production from one good to other occurs with increasing Marginal Opportunity Cost (amount of good sacrifised to gain an additional unit of the other good.
This makes slope of PPC i,e MOC to rise & makes it concave i.e outward bending
First of all, let us calculate the annual gains: they are 80000-60000=20000$. In three years, the profit will be 3*20000=60000$. Hence, the break-even investment would be 60000$. For a year after that, the profit will be 20000$; hence the return on investment would be 20000/60000=33,33% per year. After 6 years, the investment would have yielded a 100% profit (return on investment).