You plan to go to school this summer.

(a) how are bonds rated? (b) how are these rating helpful to the investors?

Jet001 [13]

Answer:

a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.

b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.

Explanation:

a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.

There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.

b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.

7 0

3 years ago

An interview in which a job candidate is asked to explain how he/she would handle a specific set of circumstances is a type of

zloy xaker [14]

Answer:

I believe this would be D

Explanation:

I say that it is D because it is asking about what they would do under certain circumstances and or situations to see what they would say

4 0

3 years ago

Read 2 more answers

What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wi

Brut [27]

Answer:

$7,200

Explanation:

The computation of the total manufacturing overhead assigned is shown below:

= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368

= 375% per direct-labor dollar.

Now

= $514,368 ÷ 8,037

= $64 per DL hour.

And,

= $64 × 30 direct labor hours

= $1920.

So,

Manufacturing overhead is

= 1920 × 375%

= $7,200

8 0

3 years ago

MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.

ruslelena [56]

Answer:

Direct Materials Purchases Budget Sept 51680 October 60160

Direct labor Budget September 54600 October 66150

Overhead Budget Sept $ 20920 October $23,230

Explanation:

The budgets are calculated in the following ways.

We multiply the required material , direct labor hour or variable overhead rate with the given number of units and then with the cost per unit to get the total costs.

MCO Leather Goods Manufacturers

Direct Materials

Purchases Budget

September October November

Production 5200 6300 6100

Pounds per units * 2 *2 *2

Total Pounds 10400 12600 12200

Cost per pound * $4 * $4 *$4

Total cost 41600 50400 48800

On hand

Inventory + 10080 + 9760 ---

Direct Materials

Purchases Budget 51680 60160

MCO Leather Goods Manufacturers

Direct Labor Budget

September October

Production 5200 6300

Hours required per unit * 0.7 *0.7

Total hours 3640 4410

Rate per hour * $15 *$15

Total labor Cost 54600 66150

MCO Leather Goods Manufacturers

Factory Overhead Budget

September October

Production 5200 6300

Hours required per unit * 0.7 * 0.7

Labor Hours 3640 4410

Variable OH * $3 *$3

Variable Costs $10920 $13230

Fixed OH + $10,000 +$10,000

Total OH $ 20920 $23,230

8 0

3 years ago

Universal Mines Inc. operates three mines in West Virginia. The ore from each mine is separated into two grades before it is shi

xxMikexx [17]

Answer:

this is a cost minimization problem, but it is missing some numbers, so I looked for similar questions (see attached PDF):

minimization equation = 20x₁ + 22x₂ + 18x₃ (costs per ton)

where:

x₁ = mine I

x₂ = mine II

x₃ = mine III

the constraints are:

4x₁ + 6x₂ + x₃ ≥ 54 (high grade ore)

4x₁ + 4x₂ + 6x₃ ≥ 65 (low grade ore)

x₁, x₂, x₃ ≤ 7 (only 7 days per week)

using solver, the optimal solution is

2x₁, 7x₂, and 5x₃

a. The number of days Mine I should operate = 2 days 

b. The number of days Mine Il should operate = 7 days 

c. The number of days Mine III should operate = 5 days 

d. The total cost of the operation for next week = $284,000

Download pdf

4 0

4 years ago