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Setler [38]
3 years ago
14

If the market interest rate is greater than the stated interest rate on bonds, the bonds will sell: ___________

Business
1 answer:
Monica [59]3 years ago
5 0

Answer:

Option B, at a discount, is the right answer.

Explanation:

Bond is a kind of security or it is a liability for a company that occurs by issuing the bonds to the public. We find that if the stated interest rate on bonds is lower than the market interest rate then the general public will not buy bonds. Therefore, it becomes essential for a company to issue bonds at a discount rate so that it can attract the general public.  It is the same case in the given question, therefore, the company will issue bonds at a discount rate.

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The two giants of the non-alcoholic beverage industry are
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Pepsi and coke they beefin
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4 years ago
One approach to reducing project length would be to: Group of answer choices Eliminate tasks on the critical path. Use hammock a
xxMikexx [17]

Answer:

the correct answer is Eliminate tasks on the critical path.

Explanation:

Critical path is the set of activities which are essential or "critical" for the success of the process. If we truly need to reduce the length of a project, we should find innovative ways to reduce the number of critical processes in the critical path.

3 0
3 years ago
Which of the following is FALSE regarding the difference between debt and common stock? A. Equity is ownership in a firm but deb
VLD [36.1K]

Answer:

C. Periodic payments made to both are tax deductible for the company.

Explanation:

Interest expense is tax deductible and dividends are not tax deductible.

This is because, interest is an expense charged to income statement and paid on debt, which is a compulsory payment.

Whereas, when we discuss about payment of dividend it is paid as part of retained earnings, as this is paid from retained earnings which is balance of net income added after tax to retained earnings.

Therefore, the statement which is false

C. Periodic payments made to both are tax deductible for the company.

4 0
3 years ago
Mr. and Mrs. Underhill operate a hardware store in a jurisdiction that levies both a sales tax on retail sales of tangible perso
Setler [38]

Answer:

Sales Tax:

Sales tax is levied only on retail sales. Since the inventory is purchased by Mr. & Mrs. CS for their store, it will not qualify to be a retail sale. Property tax is calculated on the property. In our question, property tax will be calculated on the book value as on 31st December.

Step-I: Solution to the problem where sale is not a retail sale:  

No, Mr. and Mrs. CS are not required to pay any sales tax on the purchase of inventory, since it is purchased for store and not qualifies to be a retail sale.

Step-II: Property Lax liability on Inventory:

Now, Mr. and Mrs. CS will be required to pay property tax on the book value of inventory left on 31st December. They can minimize their property tax liability by adjusting the time of their purchases. If they could have purchased the inventory in January, then the inventory could have been sold throughout the year and the book value of the stock left as on 31st December would have been lesser. Thus, the amount of tax would also be lesser  

7 0
3 years ago
Campbell Corporation is evaluating an extra dividend versus a share repurchase. In either case, $15,000 would be spent. Current
goldfiish [28.3K]

Answer:

$46.25; $50

$50; $50

Explanation:

Given that,

Amount spent = $15,000

Current earnings = $2.50 per share

Current selling price = $50 per share

Shares outstanding = 4,000

Alternative 1: Extra dividend

Price per share:

= Current selling price - (Amount spent ÷ Shares outstanding)

= $50 - ($15,000 ÷ 4,000)

= $46.25

Shareholder wealth = $50

Alternative 2: Repurchase

Price per share = $50

Shareholder wealth = $50

3 0
4 years ago
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