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:
$5,000
Explanation:
The return on investment is 20%
= 20/100
=0.2
The average operating assets is $100,000
The minimum required rate of return is 15%
= 15/100
= 0.15
The first step is to calculate the net operating assets
= ROI× average operating assets
= 0.2×100,000
= $20,000
Therefore, the residual income can be calculated as follows
= Net operating income-(minimum required rate of return×average operating assets)
= $20,000-($100,000-0.15)
= $20,000-15,000
= $5,000
Hence the residual income for the year was closest to $5,000
Answer:
This is an example of pay rise!
I hope this helps you!
Answer:
Security policy failure
Explanation:
A security policy is a procedure that is to be followed to protect a company from threats, mostly computer security threats and what to do incase of occurrence.
A security policy identifies the business assets and sets up ways to protect them.
When security policy fails it results in results in business losses as is seen in when the National Retailer Target Corporation suffered a major data breach that put at risk the financial information of an estimated 40 million customers, and in 2009 the health care provider Bluecross Blueshield of Tennessee suffered a theft of hard drives when it reported 57 hard drives stolen.
Answer:
The maturity value of certificate of deposit(CD) would be:
A = P 
wherein, A= Amount
P= Principal
r= rate of interest compounded annually
n= no of years to maturity
(a) two year investment plan:
$6000 (1 + .05) (1 + .05) = $6615
(b) five year investment plan:
= $6000 
= 6000 (1.2763) = $7657
(c) eight year investment plan:
= $6000 
= $6000(1.4774) = $8865 approx.
(d) twenty year investment = $6000 
= $6000 (2.6533) = $15,920 approx
