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belka [17]
4 years ago
7

As a general rule, a company's debentures have higher required interest rates than its mortgage bonds because mortgage bonds are

backed by specific assets while debentures are unsecured. True False
Business
1 answer:
Burka [1]4 years ago
6 0

Answer:

True

Explanation:

It is because the investor will require returns that compensate for the level of risk that is associated with the investment. From the investor’s perspective, the required returns must be lower on less riskier bonds (backed by assets) and higher returns are required on highly risky investments. As debentures are not backed by assets, this means they are highly riskier than bonds that are backed by specific assets. So the required return on debentures would be higher.

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Suppose pizzas and burgers are substitutes. If the price of pizza increases, what happens in each market?
dybincka [34]

Answer:

The correct answer is option a.

Explanation:

Pizzas and burgers are substitutes. This implies that they are used in place of each other. If the price of pizza increases, its quantity demanded will decrease. This will be indicated by an upward movement to the left on the same demand curve.

The consumers will prefer a cheaper substitute, as a result, the demand for burgers will increase. This will be indicated by a rightward shift in the demand curve for burgers.

4 0
3 years ago
Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bond
ivann1987 [24]

Answer:

Explanation:

The journal entry is shown below:

On September 30

Bonds payable A/c Dr $1,000,000

Loss on bond retirement A/c Dr $20,000

          To Discount on Bond A/c  $10,000

          To Cash A/c $1,010,000

(Being the callable bond is recorded)

The computation is shown below:

For cash

= Par value of bond + Premium

= $1,000,000 + $10,000

= $1,010,000

For Loss, it would be

= $1,010,000 - $990,000

= $20,000

And, the remaining amount would be transferred to discount on bond

7 0
3 years ago
Which of the following is true? a. To reduce cannibalization among products, reposition a product so that it does not directly c
Mumz [18]

Answer:

The correct statement is a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other

Explanation:

product canibalization is a tactic that is used by producers to take off a product with a saturated market or a product that is under-performing than its expectation. what they do is introducing a new product with same or improved characteristics to capture the market share and reduce the sales of the existing product.

However, at times, this could be a problem if the company wants to introduce two or more products of the same nature and expect all to function well without canibalizing each other.

then, the option a. is the most suitable strategy to implement.

5 0
3 years ago
Square Company purchases an equity investment in Tangle Company at a purchase price of $8 million, representing 40% of the book
goldfiish [28.3K]

Answer:

The $280,000 is the income which square report in Tangle for the year.

Explanation:

For computing the income relating to the investment in Tangle for the year, the net income and percentage is applied or we can say equity method is applied.

In mathematically,

Income = Net income × percentage

            = $700,000 × 40%

            =$280,000

All other cost like dividend, market value, purchase price is irrelevant while computing the investment income.

Hence, the $280,000 is the income which square report in Tangle for the year.

3 0
3 years ago
Which action could be an example of how the occupational safety and health administration plays a role in the legal environment
Scorpion4ik [409]

filing suit against violators of equal opportunity laws

What do you mean by human resource management?

Human resource management is a strategic method to successfully and efficiently managing people in a company or organisation so that they contribute to their firm's capacity to compete favourably (HRM or HR). In order to effectively manage people inside firms, human resource management focuses on policies and systems. The design of employee benefits, hiring, training, development, performance reviews, and reward management, including pay and benefit administration, fall within the purview of HR departments. HR is also concerned with organisational change, labour relations, and reconciling organisational requirements with those imposed by collective bargaining agreements and governmental regulations.

To learn more about human resource management

brainly.com/question/14419086

#SPJ4

5 0
2 years ago
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