Answer:
a. True
An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.
If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory
a. True
Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.
Explanation:
a. True
An increase in interest rate on bond will affect intel's decision, as the bonds, market provides firms an opportunity to borrow money.
If Intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates still affects Intel’s decision about whether to build the factory
a. True
Even if Intel can raise it's own resources to build the new factory without borrowing, the increase in the rates of bond will still affects it's decision, as the increase in the rates of bond will make the market more attractive.
Answer:
product development
Explanation:
The product development strategy is a strategy where the new products would be developed for the pre-existed market or for the present customers. As in the given situation, since dollar general produced for its existing customers
Therefore as per the given situation it is an example of product development
Answer:
$664,000
Explanation:
Correct words: <em>"If Wildhorse Company used the </em><em>Equity </em><em>value method of accounting for its investment in Ayayai Company"</em>
<em />
Ownership percentage = 300/1000
Ownership percentage = 30%
Balance in equity investment at Dec 31, 2021 = $570,000 + Share in earnings ($370,000*30%) - Share in dividends paid out ($85000*20%)
Balance in equity investment at Dec 31, 2021 = $570,000 + $111,000 - $17,000
Balance in equity investment at Dec 31, 2021 = $664,000
So, the Equity Investments balance for Ayayai company on December 31, 2021 is $664,000.
It is completely inappropriate to mention that debt investments not classified as trading or held-to-maturity securities are called available-for-sale securities. Therefore, the statement given above is false.
<h3>What is the significance of debt investments?</h3>
Investments in the loan instruments or similar classes are regarded as debt investments. These investments cannot be bought or sold or traded in the open market, as unlike equity investments, they are backed by a date of maturity.
Therefore, the statement given above regarding the significance of debt investments is false.
Learn more about debt investments here:
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