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faltersainse [42]
3 years ago
12

Which of the following statements regarding corporate bonds is most correct? a. Debentures are riskier than subordinated debentu

res because they are paid last in the event of bankruptcy.
Business
1 answer:
Assoli18 [71]3 years ago
8 0

Answer:

The answer is C. The interest rate on subordinated debentures is likely to be higher than the interest rate on debentures

Explanation:

The options to the question are under the 'Ask about this question'

Debentures are long-term security (bond) that is not secured by any collateral. It is being issued based on the past record of the issuer i.e the issuer's creditworthiness and also its reputation.

What is subordinated debenture? - This is also an unsecured loan but ranks below the table i.e some loans are above it in the ranking.

The interest or yield on subordinated debts is usually higher because it is more risky than the normal debentures.

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Career Cluster
Troyanec [42]

Answer: A

Explanation

4 0
2 years ago
2 Jodi owns 112 shares of stock selling for $16.20. How many more shares can she purchase after receiving a dividend of $0.80 po
marusya05 [52]

Answer:

The number of new shares = 6

Explanation:

Dividend is the proportion of profit paid by a company to its shareholder as a form of return on their investment. Another form of return on share investment is the capital gain; which is the difference between the selling price of a share now and its cost when it was purchased.

<em>For Jodi, we need to first calculate the amount of dividends earned on the total shares she owns. And then divide the result by the current purchase price of a share to arrive at the number of shares she can buy more.</em> This is done as follows:

Total dividends =  112× 0.80 = $89.6

Current price of a share = $16.20

THe number of shares that can be purchased= 89.6/16.20=5.5

The number of new shares = 6

6 0
3 years ago
Energy Unlimited, LP, is a limited partnership to which its partners, including Fink, have contributed capital. Energy's credito
fenix001 [56]

Answer: c. Grave first

Explanation:

In dissolving a limited partnership business all creditors are paid first.

4 0
3 years ago
Scarcity, opportunity cost, and marginal analysis Kyoko is training for a triathlon, a timed race that combines swimming, biking
alekssr [168]

Answer:

C

Explanation:

Trade off can be expressed in terms of opportunity cost.

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

Kyoko has limited time so she has to choose between three activities. If she chooses one sport, she would not be able to partake in the other activities. So, she is trading off biking or running for swimming.

Trade off occurs because resources are limited and wants are unlimited.

7 0
2 years ago
Harbert, Inc. had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of Accounts Receivable w
irakobra [83]

Answer:

a. $70,500

b. $7,500

c. $9,000

Explanation:

a. The computation of the amount of revenue is shown below:-

Amount of revenue = Ending balance of accounts receivable + Cash collected - Beginning balance of accounts receivable

= $10,500 + $72,000 - $12,000

= $70,500

b. The computation of net income earned during the accounting period is shown below:-

Net income = Revenue generated - Expenses

= $70,500 - $63,000

= $7,500

c. The computation of amount of cash flow from operating activities is shown below:-

Net cash flow from operating activities = Cash collection - Amount paid for operating expenses

= $72,000 - $63,000

= $9,000

4 0
3 years ago
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