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Volgvan
3 years ago
12

Xyz corporation has suffered a major downturn in business and will not be able to pay interest on its bonds. this is an example

of ____ risk.
a. ​financial

b. ​market volatility

c. ​interest rate

d. ​marketability
Business
1 answer:
pshichka [43]3 years ago
8 0

Answer:

The correct answer would be option A, Financial.

Explanation:

Xyz corporation has suffered a major downturn in business, and will not be able to pay interests on its bonds. This is an example of Financial Risk.

When companies or corporations face downturns in business, they actually encounter financial losses which in turn will affect the corporation and the shareholder or stockholders or bond holders. People who invested in the bonds of the company will not be able to get interests on their investments with the corporation. This is because the corporation is suffering financially and can't pay money or interest to the bond holders. This is a true financial risk for the investors as well as for the corporation.

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Match each of the options above to the items below.
Talja [164]

Answer:

a. Revenues, expenses. and dividends - Temporary accounts

b. List of permanent accounts and their balances - Post-closing trial balance

c. Transfer of temporary balances to retained earnings - Closing entries

d. List of permanent and temporary accounts and their balances - Adjusted trial balance

e. Assets, liabilities, and stockholders' equity - Permanent accounts

5 0
2 years ago
What are some causes of gentrification
ser-zykov [4K]

Answer:

Gentrification can cause low rents, immigration, and increasing population.

Explanation:

7 0
3 years ago
A client reporting recent right eye discomfort is diagnosed with chalazion of the right eye. The nurse reinforces instructions t
STatiana [176]

Answer:

"I should apply warm packs to my eye"

Explanation:

First and foremost what kind of infection is a Chalazion

A chalazion represents a cyst or lump usually found to be growing slowly within one's eyelid. The characteristic of this cyst is that it does not last for long, usually goes away after a few weeks and it is not usually accompanied by pain. Although there are occasions where it would warrant more urgent measures and treatments

One very effective way of treating or caring for the eye during the infection is to apply warm compresses to it. To do this the person should put a cloth into a bowl of warm water, wring out the water from the cloth and then apply it over the eye for a 10 to 15 minutes period.

Therefore, an understanding of the need to apply warm packs to the eye indicates an understanding of the necessary measures to be taken by the client.

5 0
2 years ago
Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The firm's target weighted avera
Savatey [412]

Answer:

0.73

Explanation:

Given that

WACC = 11%

Tax rate = 34%

Cost of equity = 14.9 %

Cost of debt = 8.6%

Recall that

WACC = (cost of equity × % of equity) + (cost of debt × % of debt) + ( 1 - tax rate)

We are to find

Cost of debt and cost of equity

Let

Cost of debt be x

Cost of equity be (1 - x)

Thus,

0.11 = (1 - x)(0.149) + (x)(0.086)(1 - 0.34)

x = 0.4228

Therefore,

Debt-equity ratio

= Cost of debt/cost of equity

= 0.4228/(1 - 0.4228)

= 0.73

4 0
3 years ago
Read 2 more answers
Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at t
Maksim231197 [3]

Answer:

FV= $1,181.62

Explanation:

Giving the following information:

Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?

We need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1+0.035)^25

FV= $1,181.62

6 0
3 years ago
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