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timama [110]
3 years ago
9

Which of the following statements is correct? Question Bonds do not have to be repaid at maturity. Stock must be repaid at matur

ity. Bonds are a form of debt capital. Stock is a form of debt capital.
Business
1 answer:
egoroff_w [7]3 years ago
4 0

Answer: Bonds are a form of debt capital.

Financial capital is important for a business to get moving. It comes from two sources: debt and equity.

Bond is an example of debt capital while stock an equity capital. Bonds have to be repaid at maturity. Stocks have no maturity dates.


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From the following statements, select the one that describes the effect of dividends on equity.
Firdavs [7]

Answer: d) Dividends cause equity to decrease.

Explanation:

Dividends are payments to shareholders as a way of sharing the profit that the company made with its owners. Net profit is added to the Equity of company.

In other words, dividends cause equity to decrease because they are taken from Retained Earnings (net income) which are added to Equity. By reducing the amount of Retained earnings available therefore, dividends are reducing Equity.

4 0
3 years ago
b. If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the s
LiRa [457]

Answer:

$2 billion

Explanation:

Foreigners spend $7 billion on U.S net exports

Americans spend $5 billion on imports

Therefore the value of U.S net exports can be calculated as follows

= $7 billion-$5billion

= $2 billion

Hence the value of U.S net exports is $2 billion

7 0
3 years ago
Pierce currently has $10,000. What was the value of his money five years ago if he has earned 5 percent interest each year?. . .
Vladimir [108]
Amount = $10000
Let us assume the principal = x
Amount of interest = 5%
Time = 5 years
Then
x (1 + i)^t = 10000
x(1 + 0.05)^5 = 10000
x(1.05)^5 = 10000
1.28x = 10000
x = 10000/1.276281
   = 7835.26
From the above deduction, it can be easily concluded that the correct option among all the options that are given in the question is the second option or option "B".
5 0
3 years ago
Read 2 more answers
Estrada Corporation produced 300,000 watches that it sold for $35 each. The company determined that fixed manufacturing cost per
Advocard [28]

Answer:

Variable cost per unit = $12

The total variable cost = $3,600,000

The total contribution margin = $6,900,000

Explanation:

Number of units produced = 300,000

Selling cost = $35

Revenue = 300,000 × $35

               = $10,500,000

Fixed cost = $14 per unit

Total fixed cost = 300,000 × $14

                          = $4,200,000

Gross margin = $2,700,000

Gross margin is the difference between the Revenue earned and the total cost.

Total cost = $10,500,000 - $2,700,000

                 = $7,800,000

Total cost = Total Fixed cost + Total variable cost

Total variable cost = $7,800,000 - $4,200,000

                               = $3,600,000

Variable cost per unit is the ratio of the total variable cost to the number of units produced.

Variable cost per unit = $3,600,000/300000

                                    = $12

Total contribution margin is the difference between the total revenue and the total variable cost.

Total contribution margin = Total revenue - Total variable cost

                                           = $10,500,000 - $3,600,000

                                           = $6,900,000

4 0
3 years ago
PLS NEED HELP ASAP IM BEHIND BAD
vekshin1

Explanation:

hey i have no idea in this area but if i had a guess i would say cuts

5 0
3 years ago
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