Answer:
The answer is True.
Explanation:
Because, then new firms will enter in the long run causing market supply to decrease, market price to fall , and profits to decrease.
Answer:
coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.
Explanation:
warrant per share = 2*75 = $150
price of the bond = 1000 - 150 - (1000/(1.05^40))
= $707.9543177
coupon*(1 -(1/(1.05^40)))/0.05 = 707.9543177
coupon*17.15908635 = 707.9543177
coupon = 41.25827583
coupon rate = 8.25%
Therefore, coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.
Answer:
i AM SORRY BUT I DONT UNDERSTAND WHAAT YOU ARE TRYING TO SAY TRY TO MAYBE REWORD IT (SORRY FOR THE CAP LOCK)
Explanation:
Answer:
The auditor is entitled to collect the audit fee and is not liable for $90 000.
Explanation:
Ace & King did their job in a competent way, the fact that the company's controller was doing something illegal is not their responsibility. External auditors work with the information that is given to them and their job is limited to analyzing them and making their conclusions about them.
In this case, the controller was the person responsible for giving the information to the auditing company, so he had the chance to direct their conclusions. An external auditor is not responsible for what happens inside a firm, and if someone steals money or assets, he/she is responsible for it.
Answer: Option A
Explanation: In simple words, it refers to the pricing strategy in which the firm initially charge a lower price of product to attract the customers and make a strong position in the market.
Hence it is effective only on those markets where the customer gives value to price more than the quality and assurance he is getting from the existing product.
Thus, from the above we can conclude that the correct option is A.
