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4 years ago

Companies that have higher risk than a competitor in the same industry will generally have

Business

2 answers:

Drupady [299]4 years ago

4 0

Answer:

if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2)rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk

Explanation:

In a peer groups, companies that share the same business and are in competition with each other are added. if one companies are at high risk than other in peer-group then that company has to do following:

1) reliable to submit an interest rate more than a competitor having a low risk

2)rate of relative stock should be less than the competitor having a low risk

3) cost of funds should be of high amount than competitor having a low risk

OverLord2011 [107]4 years ago

3 0

To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors

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If the FOMC orders the open market desk to sell government securities,

Delicious77 [7]

Answer: Option(a) is correct.

Explanation:

FOMC (Fed open market committee) is monetary policy making body of United states who implements various money supply related policy.

Here, FOMC orders the open market desk to sell government securities, which lowers the money supply and increases the interest rate.

Fed use this monetary policy instrument to control the money supply in the economy.

This effect also shown in a diagram.

In the IS-LM diagram, it was shown that there is a shift in the LM curve leftwards due to decrease in the money supply. So, this decrease in the money supply raises the interest rate from i to i' and decreases output from Y to Y'.

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3 years ago

Which one of the following is a correct statement about corporations? A. Most businesses in the United States are corporations.

Ilia_Sergeevich [38]

It would be B.

Hope it helps!:)

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4 years ago

New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the pri

eduard

Answer:

Price will RISE, and the effect on quantity is ambiguous.

Explanation:

Based on the scenario being described within the question it can be said that this would most likely cause prices to rise, while the effect on quantity is ambigious, meaning that it depends on many different factors and point of views. Mainly prices will rise due to all the material costs needed in the production of oak tables rising.

3 0

4 years ago

Crane Company receives a $74,000, 5-year note bearing interest of 5% (paid annually) from a customer at a time when the discount

saul85 [17]

Answer: $70,882.98

Explanation:

Present value of note = Present value of interest payments + Present value of face value

Present value of interest payment:

First calculate the interest:

= 5% * 74,000

= $3,700

This amount is constant so is an annuity

Present value = 3,700 * Present value interest factor of annuity, 5 years, 6%

= 3,700 * 4.2124

= $15,585.88

Present value of face value :

= 74,000 / (1 + 6%)⁵

= $55,297.10

Present value of note:

= 15,585.88 + 55,297.10

= $70,882.98

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3 years ago

If the market interest rate is greater than the stated interest rate on bonds, the bonds will sell: ___________

Monica [59]

Answer:

Option B, at a discount, is the right answer.

Explanation:

Bond is a kind of security or it is a liability for a company that occurs by issuing the bonds to the public. We find that if the stated interest rate on bonds is lower than the market interest rate then the general public will not buy bonds. Therefore, it becomes essential for a company to issue bonds at a discount rate so that it can attract the general public. It is the same case in the given question, therefore, the company will issue bonds at a discount rate.

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3 years ago