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sashaice [31]
3 years ago
6

When buying component parts, risk does not include:?

Business
1 answer:
mojhsa [17]3 years ago
7 0

When buying component parts, the risk that it is not included is the interest rate fluctuations. Interest rate fluctuations is being defined as an interest rate that likely decrease or increase in which occurs because of factors such as how banks manage the economy and control inflation.

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The preemptive right is important to shareholders because it a. allows managers to buy additional shares below the current marke
love history [14]

Answer:

C. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Preemptive rights are rights given to shareholders in an organization allowing them to buy additional shares in any future issue in order to maintain their percentage ownership, before the shares are available to the general public. It guards against dilution or decrease in a shareholders stake or ownership interest buy allowing them buy more shares for future issues before it is available for the general public to own shares. In doing so, shareholders avoid involuntary dilution.

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3 years ago
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On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest ann
Andreas93 [3]

Answer:

Wayne, Inc.

1. The stated interest rate for this bond issue is:

= 8%.

2. The market interest rate for this bond issue is:

= 9%.

3. The selling price of the bonds as a percentage of the face value is 97.5% ($3,900,000/$4,000,000 * 100)

4. Journal Entry to record the sale of the bond issue on December 31, 2020:

December 31, 2020:

Debit Cash $3,900,000

Debit Bonds Discounts $100,000

Credit Bonds Payable $4,000,000

To record the bonds proceeds, discounts, and liability.

5. December 31, 2021:

Debit Bonds Interest Expense $351,000

Credit Bonds Amortization $31,000

Credit Cash $320,000

To record the first payment of interest and amortization.

Explanation:

a) Data and Calculations:

Face value of bonds = $4,000,000

Bonds price = $3,900,000

Discount =   $100,000

December 31, 2021:

Interest expense = $351,000

Market interest rate = $351,000/$3,900,000 * 100 = 9%

Cash payment =     $320,000

Coupon interest rate = $320,000/$4,000,000 * 100 = 8%

7 0
3 years ago
What do investors use the income statements of organizations for?
Ivenika [448]

Answer:

Investors use income statements to determine the profitability of a company over time. ... This is the amount that a company would pay shareholders, per share, if the company paid out all of its net income as dividends.

Explanation:

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3 years ago
What are the main customers of bank of canada
Viefleur [7K]

The Canadian banking system is a conservative system that consists of five main categories. They are:

Chartered banks

Trust and loan companies

Cooperative credit movement

Life insurance companies

Securities dealers

For anyone considering a career in banking in Canada, this list of top banks in Canada is a helpful guide on where to start. To learn more, see our lists of financial institutions.

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3 years ago
The three common types of checking accounts are basic, interest-bearing, and lifeline?
otez555 [7]

Answer:

True

Explanation:

Quizlet: Name three common types of checking account? basic checking account, interest-banking checking account, and Lifeline checking accounts.

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