Answer:
The cost of borrowing money becomes greater.
Explanation:
To borrow money from the bond the firm Intel needs to issue bonds. Then, it needs to pay interest on these bonds. This interest is the cost of borrowing.
When there is an increase in the interest rate in the market, the firm will be required to more interest. This increases the cost of borrowing from the bond market.
The returns from the new factory may not be able to cover this increased cost of borrowing. As a result the firm will be discouraged from borrowing.
Answer:
The correct answer is letter "D": discount; higher than.
Explanation:
Yield To Maturity (YTM) is the expected return from holding a bond until maturity. It is when the bondholder does not end up selling the bond before the bond's maturity date. <em>YTM is calculated as an annual rate, and it accounts for what all future bond coupon payments at their present value are worth today.</em>
Ceteris paribus, <em>bonds are sold at discount only when the coupon rate is higher than the YTM.</em>
Answer:
B) The demand for good A is elastic.
Explanation:
Both Timothy and Jake believe that the demand is elastic, Timothy believes the PED = 1.75, while Jake believes the PED = 1.46. The difference is that Timothy believes the demand is more elastic.
Option A is not correct because Timothy believes total revenue will fall while Jake believes it will increase.
Option C is not correct because both believe that their market share will decrease.
Option D is not correct because both Timothy and Jake are arguing about higher prices, not lower prices.
Option E is not correct because an increase inn the price of a good does not shift the demand curve, it moves the equilibrium point within the given demand and supply curves.
Answer:
The answers are:
A) non cash investing and financing activity
B) financing activity
C) non cash investing and financing activity
D) financing activity
E) investing activity
F) operating activity
G) operating activity
Explanation:
- operating activity: relative to the functions of a business directly related to producing and selling goods or services
- investing activity: refers to buying and selling long-term assets and other investments
- financing activity: refer to transactions with creditors or investors used to fund company operations
- non cash investing and financing activity: refer to investing and financing activities that do not directly affect cash
