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DanielleElmas [232]

3 years ago

5

Over time, external monitoring processes should capture information about the external environment in a format that can be refer

enced across the organization as threats emerge and for historical use.
a. True
b. False

1 answer:

mamaluj [8]3 years ago

6 0

Answer:

True

when monitoring processes are observed when threats emerge the organization will know how to tackle the threats

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The is the interest rate that a firm pays on any new debt financing. Andalusian Limited (AL) can borrow funds at an interest rat

valina [46]

Answer:

5.34%

The correct option is C,5.60%

Explanation:

The are two requirements here,the first is after cost of debt for the first part of the case study and after tax cost of debt for the second part of the scenario:

1.after tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is 9.7%

t is the tax rate at 45% or 0.45

after tax cost of debt=9.7%*(1-0.45)=5.34%

2.

The pretax cost of debt here is computed using the rate formula in excel:

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond pays coupon interest which is 15

pmt is the annual coupon interest receivable by investors i.e $1000*12%=$120

pv is the current market price of the bond which is $1,136.50

fv is the face value of the bond at $1000

=rate(15,120,-1136.50,1000)

rate =10.19%

after tax cost of debt=10.19% *(1-0.45)=5.60%

7 0

3 years ago

Protective covenants: Group of answer choices a.only apply to bonds that have a deferred call provision. b.are primarily designe

tiny-mole [99]

Answer:

B. are primarily designed to protect bondholders

Explanation:

Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.

4 0

3 years ago

Read 2 more answers

(a) how are bonds rated? (b) how are these rating helpful to the investors?

Jet001 [13]

Answer:

a) Bond rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business.

b) Bond rating helps in analysing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments.

Explanation:

a) Bond-rating is the letter grading system that is used to indicate the quality of the credit-related to the bond of various organizations. Bond-rating is done by evaluating and considering all the relevant internal as well as external factors associated with the financial status of a business. Internal factors may include the financial strength of the organization. External factors may include various networks with interested investors and other government organizations and policies related to the same.

There are three important agencies that analyze the credit quality of a bond. These agencies are Standard & Poor's, Moody's, and Fitch rating Inc.

b) Bond-rating help in analyzing the risk associated with the bond by analyzing its credit quality and thus helps investors taking decisions related to their investments. It helps the investors to study the stability and quality of a bond. Hence, higher-rated bonds are considered to be more stable and appropriate for investment purposes.

7 0

3 years ago

The salary for an occupation is determined by the federal government <br> True or false?

strojnjashka [21]

Answer:

No the given statement is not correct.

Explanation:

Federal Government does not determine the pay structure for any occupation. Each occupation determine its own salary structure. For example, the doctors would determine their own fee that they would charge to the patients, schools will determine their fee that they would charge from students, lawyers determine their own fee, and the examples are countless. Government sometimes only sets the minimum level of wage that must be paid to a worker. For example government can put a base at 10 dollars wage rate that has to be given to the worker working for you. So you must give the worker at least $10, but you can give him $15 or $20, as much as you like and as much as he charges you, but you can't give him less than 10 dollars

6 0

4 years ago

Read 2 more answers

Select the correct answer.

PolarNik [594]

Answer:

Elena wants to open a Chinese restaurant near a university. She has the required capital to start her restaurant. However, she is unable to find

good chefs for her restaurant. Which type of resource is Elena lacking?

Elena is lacking Labor resource.

Explanation:

The Labor resource is the term related with the people needed for running the operation of a business. In this case Elena has the need for the chefs that will help you with the elaboration of the dishes that she wants to offer.

A business usually needs the following type of resources: labor, capital and land.

As we said previously Labor is the resource related to people.

Land is the resource related to the physical space where you want to set up your business. e.g store, online site, offices, building and so on.

Capital is the resource related to the money or financial investment needed to cover the initial launching costs.

7 0

3 years ago