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4 years ago

Why would investors buy a junk bond?

Business

2 answers:

gogolik [260]4 years ago

7 0

Bond could increase in the future

nirvana33 [79]4 years ago

5 0

Junk bonds pay a potentially higher level of interest than other bonds.

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Company X sold one of its divisions for $15,000,000 at the end of 2018. At the time of sale, the division had a book value of $1

Lady bird [3.3K]

Answer:

Loss on discontinued use of unit= $900,000

Explanation:

Company X sold one of its divisions for fair value of $15,000,000 while the book value is $14,000,000.

So they made a gain of $1,000,000

The division made a pretax loss of $2,500,000

Net loss= Pretax loss- Gain from sale

Net loss= 2,500,000- 1,000,000

Net loss= $1,500,000

Tax rate for Company X is 40% so taxed amount for the loss= 0.40* 1,500,000= $600,000

Loss on discontinued use of unit= Pretax loss - Tax

Loss on discontinued use of unit= 1,500,000- 600,000= $900,000

6 0

4 years ago

The question "What will I have to give up?" relates to

lbvjy [14]

Answer:

a. "What will I have to give up?" relates to the immediate cost.

b. "What will I gain in return?" relates to the future benefit.

c. The amount of money a worker might make on a job in a year is a salary.

d. The potential earnings of becoming a doctor minus the cost of going to medical school is the accounting profit.

Explanation:

A career is a professional employment path usually long-term. In choosing a career, different aspects should be considered. The most important aspect is usually the economic aspect of the career. For example; one should consider a career path that will be financially beneficial in long run. To do this, one has to do adequate research on various careers to determine one that they can afford without defaulting on a loan. This means that one has to consider costs such as; school fees, accommodation costs in terms of rent, transportation costs and food at the very basic level. It is very crucial for one to pick a career whose cost they can afford.

The immediate cost usually answers the fundamental question "What will i have to give up?"Once one is comfortable with the amount that they are willing to spend for the career path, they can move to the next question. The question "What will I gain in return?" alludes to the future benefit of this endeavor. The career path should be in such a way that the benefit should significantly exceed the immediate cost. The benefits are always in terms of allowances, medical cover and of cause the salary.

The potential earnings that one might get from taking up a given career minus the cost of education and training for that particular career can be defined as the accounting profit. A beneficial career is one where the accounting profit is positive.

8 0

4 years ago

Supply and Demand Equilibrium A graph titled Supply and Demand equilibrium has quantity on the x-axis and price on the y-axis. L

alex41 [277]

C is the point in the graph refers to the equilibrium price. Because the equilibrium demand and supply have produced this point, it is known as the equilibrium price.

<h3>What is equilibrium?</h3>

Economic equilibrium is the set of economic variables that drives the economy, such as supply and demand. The term "economic equilibrium" can be used to a variety of variables, including interest rates and total consumer expenditure.

C point refers as equilibrium price produced by the demand and supply mention on X and Y axis respectively.

Learn more about Equilibrium, here:

brainly.com/question/16726629

#SPJ1

4 0

2 years ago

Delwazic Inc. is a multinational corporation (MNC) that creates products specialized for a few host countries. It manufactures b

Ksivusya [100]

Answer:

The correct answer is b) Polycentric Company

Explanation:

Polycentric refers to having more than one centre and as a multi-national Company, Delwazic Inc. is producing different goods for certain countries.

The company believes that every market is unique and in order to penetrate the market, they need to produce local goods that are able to match the demand. This is a very polycentric approach that is popular among some of the largest companies in the world.

An example is that of Coca Cola, which has incorporated itself in different parts of the world and produce local products for specific markets.

3 0

3 years ago

A financial institution formed by a large organization for its members is a credit union.

balu736 [363]

This should be True.

4 0

3 years ago