Answer:
Generally convertible bonds are cheaper than normal corporate bonds since the warrants that allow bondholders to convert them to stocks carry a price. If the stock price is undervalued, so will the warrants. This means that yes, the company will also lose money if they issue convertible bonds.
But what is really important here is what action results in the lowest loss. Issuing common stock will probably result in higher losses than issuing convertible bonds.
Answer:
The average inter arrival time is less than the average process time.
Explanation:
Queue model is used to describe the waiting lines through a mathematical equation. It clearly assumes that the inter arrival time that is the time in between any two waiting is less than the average processing time.
And accordingly all the things gets to add more processes, and there is a stage in which all the things are into processes.
And since the interval time is low thus, the key assumption stated in statement 2 is correct.
Answer: False
Explanation:
The statement that "Paul Krugman argues that although strategic trade policy looks unappealing in theory, in practice it is most likely to be workable" is false.
According to Paul Krugman, a strategic trade policy will be captured by the special-interest groups that are within the economy and this will bring about it's distortion and therefore it's unlikely to be workable.
Answer:
Private Property - The right of private persons and firms to obtain, control, employ, dispose of, and bequeath land, capital, and other property.
Freedom of enterprise - The freedom of firms to obtain economic resources, decide what products to produce with those resources, and sell those products in markets of their choice.
Mutually agreeable - Economic transactions willingly undertaken by both the buyer and the seller because each feels that the transaction will make him or her better off.
Freedom of choice - The freedom of resource owners to dispose of their resources as they think best; of workers to enter any line of work for which they are qualified; and of consumers to spend their incomes in whatever way they feel is most appropriate.
Self-interest - What each individual or firm believes is best for itself and seeks to obtain.
Competition
- The presence in a market of independent buyers and sellers who compete with one another and who are free to enter and exit the market as they each see fit.
Market - An institution that brings buyers and sellers together.
The correct answer is A) Have more debt than they can pay because there are laws, generally by the state, that limit when people can file for bankruptcy. You are not allowed to file for bankruptcy unless you are unable to afford your debts. Choices B, C, and D, along with being illegal, are also unethical, especially in terms of business.
