Answer:
b.The company made large investments in fixed assets.
Explanation:
When company cuts dividend , cash in balance sheet will not reduce . It wii be in the form of reserve.
When company makes investment in fixed asset , its cash will decrease.
When the company sold a division and received cash in return , its cash will increase.
The company issued new common stock , its cash will increase .
The company issued new long-term deb , its cash increases .
So option b is correct.
Complete/Correct Question:
Assume that Brad and Theresa can switch between producing wheat and producing beef at a constant rate.
Minutes Needed to Make
1 Bushel of Wheat
Brad: 10
Theresa: 6
1 Pound of Beef
Brad: 12
Theresa: 10
Brad has a comparative advantage in the production of
a. wheat and Theresa has a comparative advantage in the production of beef.
b. beef and Theresa has a comparative advantage in the production of wheat.
c. both goods and Theresa has a comparative advantage in the production of neither good.
d. neither good and Theresa has a comparative advantage in the production of both goods.
Answer:
B, beef and Theresa has a comparative advantage in the production of wheat.
Explanation:
Firstly, let's define comparative advantage.
Comparative advantage can be said to be the ability to produce a product at a far lesser rate than is obtainable.
From the above question, it can be deduced that Theresa has a comparative advantage in the production of wheat going by the huge difference in the time needed to produce wheat.
On the other hand, Brad has a comparative advantage in the production of beef. This is because the time difference in the production time of wheat isn't the same with beef and as such Brad has some advantage in this regard.
Cheers.
The current stock price is $42.40 according to the information on the question above. This problem can be solved using the current stock price formula which stated as P=D1/(r-g) where P is the current stock price, D1 is the future dividend per share, r is the investor's rate of return, and g is the dividend's growth rate. Calculation: 42.4 = (1.6*(1+6%)) / (10%-6%)
Answer:
C. issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt
Explanation:
A municipal revenue bond trust indenture includes an "additional bonds test" covenant. This prohibits the issuer from doing all the following;
1. issuing parity bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
2. issuing senior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
3. issuing bonds with the same lien on pledged revenues unless the facility's revenues are sufficient to pay for existing and proposed debt
On the other hand, it allows issuing junior lien bonds unless the facility's revenues are sufficient to pay for existing and proposed debt.
An additional bonds test ultimately implies that the issuer is prohibited or restricted from the issuance of new bonds against the revenues of any other firm having same parity lien against pledged revenues, except it has sufficient funds (revenues) to do so.
Generally, in bond transactions, prohibition are made for selling debt having a senior claim when compared to that of the old (existing) bondholders such as creditors or investors.
