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Nikolay [14]
4 years ago
7

Bonds are a far more important source of financing than are stocks B. Financial intermediaries such as banks are the least impor

tant source of external funds for businesses C. Since​ 1970, more than half of the new issues of stock have been sold to American households D. Stocks and bonds combined supply more than​ one-half of the external funds
Business
1 answer:
Anna71 [15]4 years ago
5 0

Answer:

Bonds are a far more important source of financing than are stocks

Explanation:

There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.

There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.

The discounted value of interest to be paid on maturity is recorded.

Further, there is a tax benefit on bond payments.

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Travis International has a one-time expense of $1.13 million that must be paid two years from today. The firm can earn 4.3 perce
11Alexandr11 [23.1K]

Answer:

The firm must save $45,172.02  monthly for 24 months to be able to pay $1,130,000 at 4.3% compounded monthly as found in the attached

Explanation:

In calculating the monthly saving , I used the PMT function in excel,whose formula is given as PMT(rate,nper,pv,-fv)

r represents the rate on the savings given as 4.3% annually but 0.36% per month (4.3%/12 months), as the compounding is done monthly.

nper represents the duration of savings,given as two years but multiplied by 12 months to reflect monthly compounding horizon

pv is the present value zero as it is not given and not required

Fv is future value given as $1,130,000

Find detailed computation in the attached.

Download xlsx
8 0
4 years ago
what will most likely still occur when the economy has achieved full employment? a.frictional, seasonal, and cyclical unemployme
topjm [15]
The right answer for the question that is being asked and shown above is that: "<span>c.Frictional, seasonal, and structural unemployment " </span>most likely still occur when the economy has achieved full employment is that <span>c.Frictional, seasonal, and structural unemployment </span>
5 0
4 years ago
Choose the correct answer.
Serga [27]

Answer:

Walking to the convenience

store to buy a snack.

3 0
3 years ago
Read 2 more answers
The most important implicit cost generally omitted from the accounting statement of a firm is the ____________.a. cost of compli
Ganezh [65]

Answer:

The correct answer is letter "B": opportunity cost of the equity capital invested by the owners.

Explanation:

In Accounting, explicit costs are those incurred as a result of the operation of the companies. <em>Raw materials, direct labor, overhead </em>or <em>rent </em>are examples of explicit costs. Implicit costs represent the opportunity costs of the firm over forgone decisions or decisions not taken at all like avoiding hiring more employees.

The economic profit of a firm includes both explicit and implicit costs. <em>The accounting profit of a company includes only the explicit costs, thus, the opportunity costs of the equity capital of investors are not taken into consideration.</em>

7 0
4 years ago
Singapore banned the import, manufacture, and sales of chewing gum in the country since wads of gum were making a mess on sidewa
Montano1993 [528]

Answer:

Singapore way of governance is undisputed by their citizens based on the question. The statement shows that their is a definite harsh and strict way of rule in Singapore. Here is why,

Explanation: Whenever a state can administer a form of punishment to its people on otherwise non life threatening matters, it clearly shows that:

1. The state itself has a style of leadership that is somewhat harsh and autocratic.

2.Their is a definite sense of grip by the leaders to control and dictate what suits their desire.

3.These could also translate as an effective method of governance if the people are fairly okay with the implementations and rules in place. For Singapore all the above seem to fall in place concerning the above question. Therefore it is safe to say all three points apply in the above question concerning Singapore.

6 0
3 years ago
Read 2 more answers
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