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Hunter-Best [27]
3 years ago
12

How are bonds rated? how are these rating helpful to the investors?​

Business
1 answer:
Lorico [155]3 years ago
8 0

Answer:

Independent agencies; reliability and stability

Explanation:

Bonds are securities which help to raise funds. Bonds generally rated by independent agencies, which rate bonds based on their performance and reliability. Independent agencies forecast the future prices of bonds based on historical data. Investors highly rely on bond ratings because it helps them to identify the best investment decision. Investors usually invest in bonds which are rated higher due to their reliability and future predictions.

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25 points
drek231 [11]

Answer:

transition color

Explanation:

i just finished the test

6 0
3 years ago
Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60
Serggg [28]

Answer:

d. 12.6%

Explanation:

Rollins Corporation will receive $100 - ($100 x 5% flotation costs) = $100 - $5 = $95 net for each preferred stock issued

Since it will have to pay $12 on preferred dividends, the cost of preferred stocks = preferred dividend per preferred stock / net amount received per preferred stock = $12 / $95 = 0.1263 = 12.6%

Flotation costs are costs that a corporation incurs when issuing new stocks or bonds, and they include legal fees, underwriting fees, etc.

4 0
3 years ago
gen-tech sells merchandise on account for $4,000 to acorn company with credit terms of 2/10, n/30. within the discount period, a
pickupchik [31]

Within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account

Using this formula

Check amount=(Merchandise sold- Merchandise return)-  [(Merchandise sold- Merchandise return)× Discount]

Where:

Merchandise sold=$4,000

Merchandise return=$500

Discount=2%

Let plug in the formula

Check amount=($4,000-$500)-[($4,000-$500)×2%]

Check amount=$3,500-($3,500×2%)

Check amount=$3,500-$70

Check amount=$3,430

Inconclusion within the discount period, acorn company returns $500 of damaged merchandise and a check for $3,450 to settle the account.

Learn more here:

brainly.com/question/19865607

5 0
3 years ago
Using examples explain what inputs eBay might be using in conducting its business . What are eBay outputs ?
lawyer [7]
Typically, a simple way to think of an input is anything that costs money. These can be both good and bad things. A simple example would be: if I had a machine that made candy: my inputs would be the energy required to run the machine, the person required to work the machine, and the ingredients I had to put in to make the candy. My outputs might be the candy the machine made and the happiness it gave to people who ate it. A negative output might be that it made people unhealthy. 

As an internet company eBay does not have many of the typical inputs of doing business. For example, it does NOT have the cost of physical stores nor does it have the cost of depreciating inventory or any machines. For eBay, some examples of inputs would be it's people such as software engineers, marketing team, and executive staff. All overhead such as office space and the electricity to power its office space would be another example. Other examples could include the physical code behind eBay's software and money used to finance the company, and the data warehouses used to store everything. 

Outputs can be thought of as the value a company creates. eBay's outputs are also somewhat atypical. eBay does not create a physical product that they then sell so that makes this a challenging question. You could argue that eBay's store or its platform is an output. All the data it produces as a company is an output and has a lot of value. Since eBay allows people across the world to open up their own store online, you could say it's creating the social good of jobs or entrepreneurship "global employment" through this action (eBay has supported this publicly as well so you could look up more about it on Google). Another output could be eBay stores created by sellers. eBay owns PayPal so if you can think of any related to PayPal you could include those as well and cite that eBay owns the company. 

Hope that helps
8 0
3 years ago
During September 2022, Carla Vista Diner’s total liabilities decreased by $69000 and its stockholders’ equity increased by $1000
Over [174]

Answer:

assets reduced by $59,000

Explanation:

To solve the problem we use the accounting formula.

Asset= Total liabilities + owner's equity

Since we are dealing with change in asset, liability, and equity

Change in asset = change in liability + change in owner's equity

Change in asset= -69,000 + 10,000

Change in asset= - 59,000

This implies that the company's assets reduced by $59,000

3 0
3 years ago
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