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lord [1]
3 years ago
13

A disadvantage of bonds is: Group of answer choices Bonds require payment of periodic interest Bonds require payment of principa

l Bonds can decrease return on equity Bond payments can be burdensome when income and cash flow are low All of the above
Business
1 answer:
lys-0071 [83]3 years ago
5 0

Answer:

All of the above.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The disadvantages of bonds are listed below as;

1. Bonds require payment of periodic interest.

2. Bonds require payment of principal.

3. Bonds can decrease return on equity.

4. Bond payments can be burdensome when income and cash flow are low.

You might be interested in
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,235,000. Hard
olya-2409 [2.1K]

Answer:

The value recorded for the building = $140,000

Explanation:

From the appraisal of the property, the following information is given:

Value of land = $296,000

Value of building = $880,000

value of equipment = $584,000

Total = 296,000 + 880,000 + 584,000 = $1,760,000

Next, we will calculate the percentage of the total value allocated to the building as follows:

Percentage allocated to building = (value of building ÷ total value) × 100

= (880,000 ÷ 1,760,000) × 100

= 0.5 × 100 = 50%

Next, since we now know that the building takes 50% of the property cost, and since $280,000 was paid, the value recorded for building will be 50% of the $280,000 paid, and this is calculated as follows:

value recorded for building = 50% of 280,000

= 50/100 × 280,000 = 0.5 × 280,000 =  $140,000

6 0
3 years ago
Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its ave
VLD [36.1K]

Answer:

Martinez Company

1. Total amount of product costs for 10,000 units:

= 10,000 * $13.90

= $139,000

2. Period costs for 10,000 units:

= 10,000 * $6.15

= $61,500

3. Variable cost per unit of 8,000 produced and sold:

= $11.55

4. Variable cost per unit of 12,500 produced and sold:

= $11.55

5. Total variable costs for 8,000 units produced and sold:

= 8,000 * $11.55

= $92,400

6. Total variable costs for 12,500 units produced and sold:

= 12,500 * $11.55

= $144,375

7. Average fixed manufacturing cost per unit produced for 8,000 units:

= $4.00

8. Average fixed manufacturing cost per unit produced for 12,500 units:

= $4.00

9. Total fixed manufacturing cost for 8,000 units:

= 8,000 x $4.00

= $32,000

10. Total fixed manufacturing cost for 12,500 units:

= 12,500 x $4.00

= $50,000

11. Total amount of manufacturing overhead costs for 8,000 units:

= 8,000 * $5.60

= $44,800

per unit = $5.60

Variable manufacturing overhead = $1.60

Fixed manufacturing overhead =     $4.00

Total per unit =                                  $5.60

12. Total amount of manufacturing overhead for 12,500 units:

= 12,500 x $5.60

= $70,000

per unit = $5.60

Variable manufacturing overhead = $1.60

Fixed manufacturing overhead =     $4.00

Total per unit =                                  $5.60

13. Contribution margin per unit:

Selling price =                                          $21.40

Variable manufacturing cost per unit =  $9.90

Contribution margin per unit                  $11.50

14. Total amounts of direct and indirect manufacturing costs for 12,000 units:

Direct manufacturing costs = $9.90 x 12,000 =   $118,800

Indirect manufacturing costs = $4.00 x 12,000 = $48,000

15. Incremental manufacturing cost if Martinez increases production from 10,000 to 10,001:

= $9.90

Explanation:

a) Data and Calculations:

Average Cost Per Unit

Direct materials                              $ 5.40

Direct labor                                     $ 2.90

Variable manufacturing overhead $ 1.60

Total Variable Costs per unit        $ 9.90

Fixed manufacturing overhead    $ 4.00

Total product cost per unit          $13.90

Period Costs:

Fixed selling expense                   $ 2.40

Fixed administrative expense       $ 2.10

Sales commissions                         $ 1.10

Variable administrative expense $ 0.55

Total period costs  per unit           $6.15

All Variable costs:

Variable production costs             $9.90

Sales Commission                           $1.10

Variable administrative expense $ 0.55

Total Variable costs                      $11.55

All Fixed Costs:

Fixed manufacturing overhead    $ 4.00

Fixed selling expense                   $ 2.40

Fixed administrative expense       $ 2.10

Total fixed costs per unit               $8.50

7 0
2 years ago
1. What is the relationship between forward rates and the market’s expectation of future short rates? Explain in the context of
Dvinal [7]

Through the expectations hypothesis and the liquidity preference theory of the term structure of interest rates, liquidity must be zero for the forward rate to be equal to the expectations of future short rates.

<h3 /><h3>What is expectation theory?</h3>

Corresponds to a forecast of short-term interest rates by analyzing them against current long-term interest rates.

Therefore, it is a theory used to assist in better understanding and forecasting short-term securities trading in the future.

Find out more about expectation theory here:

brainly.com/question/20630240

#SPJ1

6 0
2 years ago
A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 50 per
katovenus [111]

Answer:

Explanation:

Forecast usage = 50 %

Actual Usage = 52%

smoothing constant = 0.10

⇒ 50 + 0.10 (52 - 50)

⇒ 50 + 0.10 (2)

⇒ 50 + 0.2 = 50.20

8 0
2 years ago
You have $135,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $49,000.
cricket20 [7]

Answer:

a. Does this create a disbursement float or a collection float?

A disbursement float occurs when you write a check and hand it out, but the person that receives the check hasn't cashed it yet. You do not owe the money anymore, but it still appears on your bank account.

b. What is your available balance?

your bank account balance = $135,000

c. What is your book balance?

book balance = $135,000 - $49,000 = $86,000

6 0
3 years ago
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