Answer:
c) Provide potential benefits to both the issuer and the investor.
Explanation:
Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.
They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.
They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.
Answer:
8
Explanation:
The maximum amount she can spend is $12. If she buys 4 apples, it would cost her : 4 x $1.50 = $6. She would have $12 - $6 = $6 to spend on bananas.
If the price of bananas are $0.75, she can buy a total of $6 / $0.75 = 8 bananas
I hope my answer helps you
Answer:
See below.
Explanation:
For a)
The money multiplier or the credit multiplier can be calculated as follows,
Money multiplier = 1 / reserve ratio
Multiplier = 1 / 0.12 = 8.33 times
For b)
For a negative $80 million change by the Fed there will be a total change in the economy of 80 * 8.33 = $666.4 million.
A -80 million change will contract money supply by $666.4 million in the economy.
For c)
This can be calculated by dividing the target by the money multiplier.
So to achieve a change of $500m the Fed will expand the money supply by
= 500 / 8.33 = $60.02m.
Hope that helps.
It will be weaker. According to Hering’s opponent-process model, our eyes will experience a certain level of fatigue after observing a certain object for a prolonged period of time. This level of fatigue usually happen only temporarily and you could experience the same level of color distinguish if you let your eyes rest for a while.
Answer: Wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.
Explanation:
Out of the options that are given in the question, the correct option is that wide variations in capital structures exist between industries and also between individual firms within industries and are influenced by unique firm factors including managerial attitudes.
All the other options are false. Debt-to-total-assets ratios varies much among different industries.
