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BabaBlast [244]
3 years ago
9

23.

Business
1 answer:
AlexFokin [52]3 years ago
6 0

Answer:

23)  A)  higher than the market rate of interest.

24) D)  6%.

Explanation:

23) Whenever a bond sells at a premium it means that the stated interest rate on the bond is higher then the market interest rates because of which investors are willing to pay more for the bond than its par value, because similar bonds are offering less coupon payments. Whenever a bonds stated interest rate will be higher than the market rate of interest investor will pay more than the par value of the bond.

24) Whenever we need to calculate the present value of a bond we use the market interest rate to discount it because that is the rate that the investors require from the bond, where as the stated interest rate on the bond is what the bond is offering, and we cannot use the stated interest rate to calculate the PV because the stated interest rate is set by the issuer and in order to calculate the the present value we will use the market rate interest because that is the rate that the investors require from the bond. In this case the market rate interest is 6%.

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Caren's Canoes is considering relaxing its credit standards to encourage more sales. As a result, sales are expected to increase
tamaranim1 [39]

Answer:

$ 1733

Explanation:

Cost Marginal Investment in Accounts Receivable = Marginal Investment in Accounts Receivable * firm's required return on investment

Marginal Investment in Accounts Receivable = Average Investments Under proposed Plan - Average Investments Under present Plans

Average Investments in Accounts Receivable = Total variable cost of annual sales / Turn over of account receivables

Turn Over of account receivables = 360/ average collection period.

Using above formula for calculation , Answer = $ 8665 * 20% = $ 1733

5 0
4 years ago
ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquir
mojhsa [17]

Answer:

wholly owned subsidiary

Explanation:

A wholly-owned subsidiary is a form of subsidiary arrangement, between two companies, whereby a company is completely owned or its whole stock is bought by another company often referred to as Parent Company after the arrangement or the agreement of the acquisition.

It is also characterized by having control over its resources and specific mission, also operates independently.

Hence, in this case, the right answer is a wholly owned subsidiary

6 0
3 years ago
Briggs Excavation Company is planning an investment of $132,000 for a bulldozer. The bulldozer is expected to operate for 1,500
nevsk [136]

<u>Solution and Explanation:</u>

The yYearly Equal Cash Inflows =(110-44-28) * 1500-8000  = 46000

Present Value of Inflows at the rate of 10% = $46000 * \text { PVIFA( } 5 \text { years }, 10 \%)$= 46000 multiply with 3.791 = 174386

NPV = 174386 minus 132500 = 42386

<u> Briggs must make an investment in the project as it generates additional wealth and NPV is positive </u>

For NPV = 0, PV of inflows = 132500

PV Of Inflows = Annual Cash Flow multiply with 3.791

Annual Cash Flow = 132500 divide by 3.791 = 34951.20

So, Hours =(34951.20+8000) /(110-46-28) = 1193.08 hours

3 0
3 years ago
The price of beef rises significantly, what will happen in the market for fast-food hamburgers assuming nothing else happens in
romanna [79]

Answer:

Option (c) is correct.

Explanation:

We know that beef is used as an ingredient or input in making hamburgers. If the price of the input i.e beef increases then as a result supply of hamburgers decreases because of the higher cost of production. This will shift the supply curve leftwards, its shows that lesser supply with same level of demand will lead to higher prices of hamburgers.

5 0
3 years ago
When an employee evaluates his or her manager low on all performance criteria due to dissatisfaction with the manager's disposit
Anton [14]

Answer:

The correct answer is D

Explanation:

Horns error is the term which defined as the error, where the opinion of one is color with the opinion of the others. This kind of error involves or comprise the negative ratings. This will be called as the horns error.

In this case, an employee computed the manager low on all the performance due to the dissatisfaction with the disposition of the manager. So, the employee committed to a horns error.

8 0
3 years ago
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