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3 years ago

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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Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the follo

Scrat [10]

Answer:

$62.00

Explanation:

Given data (Twersky Wedding):

Size-related: $1.15/guest

Complexity-related: $28.24/ tier

Order-related: $74.74/order

Guests: 120

Tiers 5

Order 1

Calculations:

Size related ($1.15 per guest × 120 guests): $138.00

Complexity-related ($28.24 per tier × 5 tiers): $141.20

Order-related ($74.74 per order × 1 order): $74.74

Cost of purchased decorations for cake: $54.66

______________________________________________

Total cost $408.60

Charges $470.60

Overall margin = Charges - Total cost = $470.60 - $408.60 = $62.00

Hope this helps!

6 0

3 years ago

Brief Exercise 24-2 Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $216,758, n

Tanzania [10]

Answer:

Net Present Value = $12,400

Since net present value is positive, the investment shall be made.

Explanation:

Capital outlay = $216,758

Cash inflow every year = $43,900

Period = 10 Years

Net Present Value = Present value of cash inflow - Present value of cash outflow

Present Value of Cash Inflow = Cash inflow each year X Present value factor of cash inflows for years

= $43,900 X 5.22

= $229,158

Present value of cash outflow = $216,758

Net Present Value = $229,158 - $216,758 = $12,400

Since net present value is positive, the investment shall be made.

Net Present Value measures the net effect of an investment discounted at current rate of interest, i.e. cost of capital.

Final Answer

Net Present Value = $12,400

Since net present value is positive, the investment shall be made.

3 0

4 years ago

Price discrimination will result in consumers with more elastic demand purchasing more of the good than when a single price is c

Akimi4 [234]

<span>A company can have a product that they want a single customer to be able to use and profit from, they may sell that product to that customer at a lower price, allowing them to purchase more, and blocking out competitors with higher pricing.</span>

6 0

3 years ago

The following information is taken from Reagan Company's December 31 balance sheet: Cash and cash equivalents $ 9,619 Accounts r

abruzzese [7]

Answer:

46.07 days

Explanation:

Calculation for the firm's days' sales uncollected for the year

Using this formula

Days' Sales Uncollected Ratio = Ending Accounts Receivable/Net Sales * 365

Let plug in the formula

Days' Sales Uncollected Ratio = ($76,422/$605,500) * 365

Days' Sales Uncollected Ratio = 46.067 days

Days' Sales Uncollected Ratio = 46.07 days Approximately

Therefore the firm's days' sales uncollected for the year is: 46.07 days

5 0

3 years ago

Your newest coworker is not as productive as other members of your team. You and your coworkers have to work harder to make up f

BaLLatris [955]

Answer:

The correct answer would be option C.

Explanation:

If there is a new co worker hired in my office, and its her beginning days, and I, along with other team members see that she is not as productive as other members of the team are, and we all have to work more and harder to make up for her work. So i would preferably give her advice and tips for how to get things done correctly and efficiently. I would not like to get her out of the office, rather i will try to make her understand the things as soon as possible and give her tips to increase her work efficiency. But if the problem continues, and I believe that she will not be able to cope up with us, then i will talk to the supervisor and suggest him that she might not be the best role for us. But i will go with option C.

6 0

3 years ago

Read 2 more answers