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Debora [2.8K]
3 years ago
6

A call provision gives bondholders the right to demand, or "call for," repayment of a bond. Typically, companies call bonds if i

nterest rates rise and do not call them if interest rates decline. a. True
Business
1 answer:
BlackZzzverrR [31]3 years ago
7 0

Answer:

False

Explanation:

A call provision entitles the issuer of the bond the right to call or demand repayment of the bond. Bondholders do not have the right to call the bond. If bondholders do not want to hold the bond anymore they can just sell it on the secondary bond market.

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Daniel Franco, a free-lance gaming consultant and blogger, needed a new gaming system for his business. After some lengthy revie
Law Incorporation [45]

Answer:

Explanation:

Issue: Will the court rule in support of Daniel’s argument that Nintendo breached the warranty based on reasonable expectation on the performance of an expensive system and statements made while selling the gaming system?

Rule:  There is a creation of express warranty when a seller makes a description of the statement quality, condition or performance of goods sold. This warranty is created by the statement of facts and if the seller uses words to designate the value of the supposed goods, it will only be considered as an opinion that does not create any express warranty.

The customer’s reasonable expectation of the existence of the gaming system based on the price leads to implied warranty. The goods sold should be logically fit for the general purpose for which it is sold. It should be of proper quality to satisfy the implied warranty of merchantability and the goods should fit the particular purpose for which the buyer will use the goods to satisfy the implied warranty of fitness for a particular purpose.

Analysis: Here, the argument of Daniel that Nintendo’s description of the gaming system as “most reliable”, and “durable” asserted that the quality and performance of the gaming system will not stay because these words create general statements that are made as part of sale or seller’s opinion about the goods. These words would be considered as puffery and do not create any express warranty. The higher price of the gaming system would create an implied warranty about the performance of the system, but the switch failed only after the warranty period. When the seller has expressly stated the warranty period as one year, any defects that occur after the warranty period will not breach the implied warranty.

Moreover, the gaming system was reasonably fit for Daniel’s business purpose and worked well during the warranty period. Hence Daniel’s arguments will not stay in front of the court.

Conclusion: The court will not rule in favor of Daniel and Daniel will not be able to recover against Nintendo because no breach of warranty had occurred.

8 0
3 years ago
Sales total $320,000 when variable costs total $200,000 and fixed costs total $60,000. the sales volume is 5,000 units. the brea
sesenic [268]

Income Total $320,000 whilst variable expenses overall $2 hundred,000 and glued prices general $60,000. the sales volume is 5,000 gadgets. the breakeven point in income bucks is Sale 200000$

   

working

sale=400000$

VC= 300000$

Contribution=one hundred thousand/0.25

Contribution % to sales is 25%

BEP= Contribution = FC

FC=50000

Contribution % to sales is 25%

assume Sale is = X$ then

BEP= Contribution = FC

BEP= 25% of X$ = 50000$

X = 50000$/25%

X = 200000

The breakeven point is the point at which overall value and general sales are the same, meaning there's no loss or benefit to your small enterprise. In other words, you have reached the extent of production at which the charges of production equal the sales for a product.

The breakeven point in economics, business—and mainly price accounting—is the factor at which overall cost and overall revenue are the same, i.e. "even". there's no net loss or gain, and one has "broken even", even though possibility expenses have been paid and capital has received the risk-adjusted, expected return. This discernment is crucial as it's the most effective manner for an enterprise to decide if what it costs for its products and services will cover what it charges to make the products or provide the one's offerings.

Learn more about the breakeven point here: brainly.com/question/21137380

#SPJ4

8 0
2 years ago
Franklin Aerospace has a quick ratio of 2.00x, $38,250 in cash, $21,250 in accounts receivable, some inventory, total current as
postnew [5]

Answer:

Over the past year, the company sold and replaced its inventory 31.37x

Explanation:

In order to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate first the inventory with the following formula:

Current assets=cash+inventory+account receivables

inventory=Current assets-cash-account receivables

inventory=$85,000-$38,250-$21,250

inventory=$25,500

So, to calculate how often did Franklin Aerospace sell and replace its inventory we would have to calculate the Inventory turnover ratio as follows:

Inventory turnover ratio=sales/inventory

Inventory turnover ratio=$800,000/$25,500

Inventory turnover ratio=31.37x

Therefore, over the past year, the company sold and replaced its inventory 31.37x

6 0
3 years ago
Cash to Monthly Cash Expenses Ratio Capstone Turbine Corporation produces and sells turbine generators for such applications as
Andrej [43]

Answer:

a) $1,918.17

b) 16.8 months

C) Yes, Capstone Turbine will remain in business.

Explanation:

a) To find the monthly cash expenses, we have:

Monthly cash expenses = negative cash flow from operations / 12

= 23018 / 12

= $1,918.17

b) To find the ratio of cash to monthly cash expenses, we have:

Ratio of cash to monthly cash expenses = Year end cash / monthly cash expenses

= $32,221 / $1,918.17

= 16.797

≈ 16.8 months

c) Yes, Capstone Turbine will remain in business because the calculated ratio above shows that they have cash to continue operations for approximately 16.8 months.

6 0
3 years ago
On october 31, 2009, sky co. borrowed $16 million cash and issued a 7-month, noninterest-bearing note. the loan was made by star
mash [69]

Answer: Sky's effective interest rate on this loan is 8.39%.

In this question, we assume that interest is compounded annually.

Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.

Face value of the note            $16 million

Discount Rate p.a                        8%  

Tenure of the note                    7 months

Discount on Note = Face Value * Discount Rate * \frac{Tenure in months}{Months in a year}

Discount on Note = 16 * 0.08 * \frac{7}{12}

Discount on Note = 0.746666667million

[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]

Loan Amount received by Sky = 16 - 0.746666667

Loan Amount received by Sky = 15.25333333 million

So, Sky pays an interest of 0.746666667 on a sum of 15.25333333  for 7 months. This works out to a seven month interest of:

Seven month Interest Rate = \frac{Interest}{Loan amount}

Seven month Interest Rate = \frac{0.746666667}{15.25333333}

Seven month Interest Rate = 0.048951049

From this we can work out the effective interest rate for Sky as follows:

Sky's Effective Interest Rate = Seven month interest rate * \frac{12}{7}

Sky's Effective Interest Rate = 0.048951049* \frac{12}{7}

Sky's Effective Interest Rate = 0.083916084

4 0
3 years ago
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