1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
shutvik [7]
4 years ago
6

Andrew Industries is contemplating issuing a 30​-year bond with a coupon rate of 7.00 % ​(annual coupon​ payments) and a face va

lue of $ 1 comma 000. Andrew believes it can get a rating of A from Standard​ & Poor's.​ However, due to recent financial difficulties at the​ company, Standard​ & Poor's is warning that it may downgrade Andrew​ Industries' bonds to BBB. Yields on​ A-rated, long-term bonds are currently 6.50 %​, and yields on​ BBB-rated bonds are 6.90 %.A. What is the price of the bond if Andrew Industries maintains the A rating for the bond​ issue?
B. What will be the price of the bond if it is​ downgraded?
Business
1 answer:
erik [133]4 years ago
8 0
Vghfvfvfvfvhhvvvvbbhvc
You might be interested in
One of the competitive dimensions that form the competitive position of a company when planning their strategies is making the b
horrorfan [7]

Answer:

False

Explanation:

The five basic competitive dimensions are cost, quality, time, flexibility and innovation. If the company has greater control over these five thing, then it is more inclined towards the competitive advantage. Furthermore, the best trade off doesn't forms part of strategies that constitutes to competitive advantage.

4 0
4 years ago
Read 2 more answers
Driving consists of a ______________ process that is used hundreds of times per mile traveled
abruzzese [7]

Driving consists of a <u>"decision making" </u>process that is used hundreds of times per mile traveled .


Driving a commercial vehicle requires your complete consideration since it is a decision-making process.

These decisions turn out to be second nature as an individual has all the more driving background.  

While working a commercial vehicle, the driver must settle on the right choice in a brief instant. Inability to settle on the right choice can put the motoring open and the business driver in danger of damage or demise.


6 0
3 years ago
Marlow Company purchased a point of sale system on January 1 for $5,800. This system has a useful life of 5 years and a salvage
xz_007 [3.2K]

Answer: $1392

Explanation:

The depreciation rate under straight line is =1/5=0.2

The depreciation rate under double declining is = 0.2 × 2 = 0.4

Depreciation expense for the first year = 0.4 × $5800 = $2320.

At the beginning of year two, net book value = $5800 - $2320 = $3480

Depreciation expense for year two = 0.4 × $3480 = $1392

7 0
3 years ago
Jeremiah Corporation purchased debt securities during 2021 and classified them as securities available-for-sale: Security Cost F
grin007 [14]

Answer: $0

Explanation:

Available-for-sale securities simply refers to the debt securities that are bought but with the intention that they'll be sold before they mature. They're typically reported at their fair value.

The gain that will be reported by Jeremiah Corporation in the December 31, 2021, income statement relative to the portfolio is $0. This is because for available-for-sale securities, there'll be no reports on holding gains or losses incurred.

4 0
3 years ago
You are evaluating shares in Honeywell International (HON). They currently pay an annual dividend of $4.00 per share this year a
xxTIMURxx [149]

Answer:

$84

Explanation:

Calculation for what is the value of HON shares

Using this formula

Value of HON shares=(Expected dividend next year)/(Discount rate -Growth rate of dividend)

Let plug in the formula

Value of HON shares= 4(1+.05)/(.10-.05)

Value of HON shares= (4.2/ .05)

Value of HON shares= $84

Therefore the Value of HON shares will be $84

7 0
3 years ago
Other questions:
  • Bobbi and Stuart are partners. The partnership capital of Bobbi is $41,400 and that of Stuart is $74,700. Bobbi sells his intere
    8·1 answer
  • Masters Golf​ Products, Inc., spent 4 years and $ 1 comma 200 comma 000 to develop its new line of club heads to replace a line
    9·1 answer
  • 13. A kitchen sink should always be
    10·1 answer
  • Assignments
    14·2 answers
  • "according to ted levitt, what is the definition of a product? what satisfactions do customers want?"
    15·1 answer
  • Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto
    15·1 answer
  • If certain conditions are met, an apartment manager can exclude the fair market value of free rent from his or her income. true
    5·1 answer
  • Lydia works at a medical facility in which all employees are required to wear white shoes. lydia does not agree with this rule.
    11·1 answer
  • A problem is listed below. Identify its type. A certain company has purchased new swivel chairs for its employees. The company m
    14·1 answer
  • a procyclical fiscal policy, like those of many state and local governments in the united states, tends to worsen recessions or
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!