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nevsk [136]
2 years ago
14

You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of

bond based on each description given in the table that follows:These bonds are collateralized securities with first claims in the event of bankruptcy.
These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company.
These bonds are considered the riskiest of all corporate bonds and thus offer the highest interest rates.
Business
1 answer:
vaieri [72.5K]2 years ago
4 0

Answer:

a. Senior mortgage bonds b. Debentures c. Subordinated debentures

Explanation:

A mortgage bond is a financial instrument which is backed by some real assets. These assets can be sold to cover the cost in case of default. Senior mortgage bonds are the first to be paid in case of bankruptcy.

Debentures are financial tool used for long term borrowing by corporations. They are not backed by any specific assets but by credit worthiness of the firm itself.

Subordinated debentures are the last to be paid off in case of bankruptcy and thus carries highest risk. However they also provide highest interest.

You might be interested in
Supply-side policies have proven that smaller government makes the economy more efficient. ​ Select one: True False
scoundrel [369]

Answer:

The given statement is "False".

Explanation:

  • Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake.
  • Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.
3 0
3 years ago
What is the answers please I’m struggling
Dovator [93]

Answer:

a. $288,000

b. $190,000

Explanation:

The Accounting equation: Assets = Liabilities + Equity

a. Assets = Liabilities + Equity

382,000 = 94,000 + Equity

Equity = 382,000 - 94,000

= $288,000

b. Equity as of December 20Y9.

Account for the changes in assets and equity:

Assets = Liabilities + Equity

(382,000 - 63,000) = (94,000 + 35,000) + Equity

319,000 = 129,000 + Equity

Equity = 319,000 - 129,000

= $190,000

6 0
2 years ago
W.C. Cycling had $55,000 in cash at year-end 2013 and $25,000 in cash at year-end 2014. The firm invested in property, plant, an
Vera_Pavlovna [14]

Answer:

This question requires us to calculate cash flows from operations and net income. Each of them is calculated as follow.

Cash flows from operations

Cash flow from operation comprises of cash generated or spend on core business related purchase and sale. It will be calculated as follow.

Cash from operations = 25,000 - 100,000 =($ 75,000).

Net income

Net income will be calculated using simple cashflow equation given below.

Closing cash balance = opening cashflow + net income + depreciation + cash flow from operations + cash flow investment + cash flow finance

25,000 = 55,000 + net income + 10,000 - 75,000 - 250,000 + 170,000

Net income = 115,000

7 0
3 years ago
Bell’s Shop can make 1000 units of a necessary component with the following costs: Direct Materials $24000 Direct Labor 6000 Var
Korolek [52]

Answer:

8,000= fixed overhead

Explanation:

Giving the following information:

Bell’s Shop can make 1000 units of a necessary component with the following costs:

Direct Materials $24000

Direct Labor 6000

Variable Overhead 3000

Fixed Overhead ?

The company can purchase the 1000 units externally for $39000. The unavoidable fixed costs are $2000 if the units are purchased externally.

Buy= 41,000/1,000= $41

Total Unitary cost= 24,000 + 6,000 + 3,000 + fixed overhead

41,000= 33,000 + fixed overhead

8,000= fixed overhead

3 0
2 years ago
A company that manufactures bicycles has a fixed cost of ​$90000. It costs ​$100 to produce each bicycle. The total cost for the
Paul [167]

Solution:

The total cost for the company is the sum of its fixed cost and variable costs.

Corporate expenditures that do not depend on the amount of goods or services provided by the company are fixed costs.

Variable costs are expenses that change when changes occur in the sum of the good or service produced by a company.

C(x) = 90000 + 100x

C(110) = 90000 + 100 ( 110 )

C(110) = 90,000 + 11, 000 = 101,000

It costs $101,000 to produce 110 bicycles.

4 0
2 years ago
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