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4 years ago

Buying a treasury bill (T-Bill) is best for investors who are looking for what?

Business

1 answer:

kirill [66]4 years ago

6 0

Treasury bill is good for a long term investment that is stable.

Explanation:

Treasury bill is best for the investors who are looking for a long term investment and do not want to take out the money anytime between the period that the bill is offered for.

This also allows for a pre decided rate that will give them the same rate of return no matter what the market is like at that time.

This is the kind of bond thus, that one must take if they are looking to keep their money secure for some amount of time without hope for a lot of profit.

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Al Dente Pasta Company overstated its inventory by $10 million at the end of 2021. The discovery of this error during 2022, befo

MAXImum [283]

Answer:

Retained earnings would be debited and inventory would be credited for $10 million each.

Explanation:

In the given scenario Al Dente Pasta Company overstated its inventory by $10 million.

This is an overstatement of assets of the company.

This also gives an understatement of the retained earnings of the company.

Adjusting entry in 2022 will now require Retained earnings would be debited and inventory would be credited for $10 million each.

7 0

3 years ago

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to

Marysya12 [62]

Answer:

The answer to this question is Defamation

Explanation:

Defamation refers to any statement (Whether written or verbal) that is untrue and injurious to any of the parties involved in the insurance business.

A statement is said to be a Defamatory statement if it is false especially regarding the financial condition of the insurer.

Identifying defamatory statement

Statements must be untrue
it must be capable of causing damage of injury to person or business.

5 0

3 years ago

A misconception is a mistaken idea or thought.

e-lub [12.9K]

This is true, it is a misunderstandment

8 0

3 years ago

A convertible debenture callable at 101 is trading at 105. The debenture carries 4% coupon and is convertible at $25. The common

andrey2020 [161]

If an investor bought the debenture and converted it, the profit would be $30.

First, calculate the number of shares each bond will convert to:

$1,000 (par) divided by $25 per share equals 40 shares per bond. With a market value of 105, each bond costs $1,050.

What is the stock parity price?

$1,050 divided by 40 shares equals $26.25 per share. The current market value of the stock minus stock parity price equals profit (or loss).

$27.00 − $26.25 = $0.75 per share × 40 shares = $30.

What is convertible debenture?

A long-term debt with the option to convert into stock shares after a predetermined amount of time is known as a convertible debenture. Common examples of convertible debentures include unsecured bonds or loans with little to no underlying security to back the commitment.

How are debentures converted to shares?

Equity shares are created out of a debenture. The holders of debentures are asked to return debenture certificates after sending them a notification of the conversion. The allocation of shares is handled by the secretary. Changes must be submitted to the Register of Charges after allotment.

Learn more about convertible debenture: brainly.com/question/16976826

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8 0

1 year ago

A company’s perpetual preferred stock has a par value of $65 per share and it pays a dividend rate of 6.25% per year. The prefer

V125BC [204]

Answer:

Cost of preferred stock=7.41 %

Explanation:

<em>A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future. </em>

<em>A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows: </em>

Cost of preferred stock = D/P(1-f) × 100

D- Preference dividend

P- stock price

F- flotation cost

Preference dividend = Coupon rate × Nominal value

DATA

Nominal value = $65

Stock price = $58.63

Dividend rate=6.25%

Flotation cost = 6.5%

Preference dividend = 6.25%× 65 = 4.063

Cost of preferred stock =(4.063 /58.63×(1-0.065) × 100 = 7.41 %

Cost of preferred stock=7.41 %

5 0

4 years ago