Answer:
2250
Explanation:
Assumption: <u>Par value of the bonds to be issued is $1000 </u>
Current Capital structure is 100% equity financed of Dirty Don's Bicycle Shop.
Share capital of Dirty Don's bicycle shop = 1,00,000 shares × $50
= $5000000
After restructuring, the capital structure shall comprise of 45% debt and 55% equity.
Hence, the proportion of debt = 45% of $50,00,000 = $22,50,000
Assumed: par value of bond is $ 1000
In this case, the number of bonds to be sold =
= 2250 bonds
Thus, 2250 bonds will have to be sold at $1000.
Bonds refer to debt instruments whereby the borrower raises long term finance in exchange for making periodic coupon payments in the form of interest and principal repayment upon date of maturity.
Answer:
revenue bonds
Explanation:
A revenue bond is a Municipal bond used to fund projects that yield income and are secured through a particular source of revenue.
Characteristics of revenue bond.
1. It takes long time to maturity.
2. It yields more returns than the general obligation bond.
The purpose of a revenue bond is so that government can finance projects that generates income such as toll roads, airports, seaports, electricity projects, water projects etc.
The implication of the expectations theory that expected returns for a holding period must be the same for financial instruments of different maturities depends on the assumption that instruments with different maturities are perfect substitutes.
By assuming that there is no chance for arbitrage, expectations theory aims to forecast short-term interest rates based on existing long-term rates by stating that two investment strategies with similar time horizons should produce equal returns.
It helps investors predict future interest rates and aids in helping them make investment decisions. Depending on the results of the expectancies theory, investors can determine whether or not future interest rates are advantageous for investing. Government bond rates are utilized as long-term rates in principle, which aids analysts in predicting short-term rates and predicting where these short-term rates will trade in the future.
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Using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is <u>$2,250</u>.
<h3>What is the specific identification method?</h3>
The specific identification method is an inventory method that identifies specific inventories sold and uses their specific costs in valuing the cost of goods sold.
<h3>Data and Calculations:</h3>
Date Units Unit Cost Total Balance
June 1 1 $500 $500 $500
July 9 2 $550 $1,100 $1,600
Sept. 23 2 $600 $1,200 $2,800
Dec. 24 -1 $550 $550 $2,250
Thus, using a periodic specific identification, Delta Diamonds' Inventory after the December 24 sale is <u>$2,250</u>.
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It would be an example of<u> "allopatric speciation".</u>
Allopatric speciation will be speciation that happens when two populaces of similar species end up confined from each other because of geographic changes. Speciation is a slow procedure by which populaces advance into various species. An animal types is itself characterized as a populace that can interbreed, so amid speciation, individuals from a populace shape at least two particular populaces that can never again breed with each other.