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sveta [45]
3 years ago
11

If the market interest rate remains at 5% for the next 29 years, and if Leggio's credit rating remains constant, then the price

of its bonds will decrease gradually over time and be exactly $1,000 at maturity. True or false
Business
1 answer:
sweet [91]3 years ago
3 0

Answer: True

Explanation:

A bond is a debt tool that provides a periodic stream of interest payments to investors while repaying the principal sum on a specified maturity time.

In the U.S., the face value is usually $1,000 or a multiple of $1,000. Hence as the credit value remains constant over the span of the 29 years, the bond keeps decreasing.

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While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec
Mariulka [41]

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

3 0
3 years ago
Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts receivable were $25,0
Dahasolnce [82]

Answer:

b. $100,000

Explanation:

Provided information

Beginning balance of account receivable = $25,000

Collection from customers = $100,000

Ending balance of account receivable = $15,000

Since we have to find out the gross taxable income, so we considered only the collection from customers as this is the amount which is received and therefore, it has come under the gross taxable income i.e $100,000.

8 0
3 years ago
Bakers corp will pay a dividend of 5.15 8.05 and 11.25 per share for each of the next three years respectively. the company will
Pani-rosa [81]

Answer: $19.40

Explanation:

Based on the information given in the question, the following can be deduced:

D1 = $5.15

D2 = $8.05

D3 = $11.25

Rate of return = 11% = 0.11

The current stick price will be calculated as:

= 5.15/(1 + 0.11) + 8.05/(1 + 0.11)^2 + 11.25/(1 + 0.11)^3

= 5.15/1.11 + 8.05/(1.11)^2 + 11.25/(1.11)^3

= $4.64 + $6.53 + $8.23

= $19.40

5 0
3 years ago
Which of the following statements is​ true?
raketka [301]

Answer:

The correct answer is option C.

Explanation:

n economics, we know that the basic problem is the scarcity of resources. These resources have alternative uses. We have unlimited wants and needs. Whenever we decide how to use scarce resources to satisfy our wants and needs, we face a trade-off.  

We cannot satisfy all our wants and needs, if we want to satisfy one we have to sacrifice the other. Anytime a person decides to take any action, he/she faces trade-offs. Every individual regardless of his wealth and income is faced with making trade-offs.

8 0
4 years ago
A company has fixed costs of $94,050. Its contribution margin ratio is 33% and the product sells for $69 per unit. What is the c
Natali5045456 [20]

,Answer:  $285,000

Explanation:

The Contribution margin of a product refers to its selling price less that of the variable costs incurred to make and sell the good.

It can be used to calculate the breakeven point in sales along with the fixed costs.

To calculate a company's break-even point in dollar sales, the formula is:

= Fixed costs / Contribution margin ratio

= 94,050 / 33%

= $285,000

8 0
3 years ago
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