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alexandr402 [8]
3 years ago
8

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve

stors face?
The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.
Business
2 answers:
Fiesta28 [93]3 years ago
7 0

Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.

However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.

shutvik [7]3 years ago
3 0

The answer is: The issuer could go bankrupt.

When investors buy a bond, they basically enter an agreement where the bond issuer become indebted and agree to payback the amount of money they invested plus interest rates.

The thing is, the full value of bond can only fully paid back along with the interest after it reach maturity dates. If the issuer go bankrupt before the bond reaching its maturity, the issuer would be freed of all debts including the debts to the investors of the bond.

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Answer:

b. $17600

Explanation:

The computation of the amount of depreciation expense for the year 2022 is shown below:

But before that first we have to find out the per hour rate which is

Units-of-production method:

= (Original cost - residual value) ÷ (estimated production)  

= ($216,000 - $40,000) ÷ (55,000 hours)

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Now for the 2022 year, it would be  

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= 5,500 hours × $3.2

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3 years ago
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Ilia_Sergeevich [38]
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3 years ago
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A monopolist introduces a technological innovation that lowers the marginal cost and average cost of production. The price of th
yawa3891 [41]

Answer:

A Price: Remain constant, Level of Output: Remain constant, Profits: Increase

Explanation:

The image attached shows the different possible solutions. Options can be eliminated based on the problem statement. First, Options B, C and D can be discounted because of the change in output levels. From the information available, the technological innovation lowers marginal cost and cost of production, however it does not affect production time or output levels.

For the two remaining options, A and E, both are possible scenarios based on the information available.

Option E:

Price decreases, output level remains the same and profit remains the same. While this is a possible outcome, as the business is a monopoly, there is no incentive for the monopolist to reduce prices along with cost as they are already the only player in the market. Especially when the reduction in price does not result in increased profit.

Option A:

Price and output level remain constant, while profit increases. This is the most likely outcome as the business is a monopoly. The owner can take advantage of the reduced costs and sell at the same price to increase profits.

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3 years ago
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods
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Answer:

Direct material price variance= $12,500 unfavorable

Explanation:

Giving the following formula:

The standard price per pound is $2.00.

The actual quantity of materials purchased and used in production is 50,000 pounds.

The actual purchase price per pound of materials was $2.25.

<u>To calculate the direct material price (spending) variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 2.25)*50,000

Direct material price variance= $12,500 unfavorable

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