Answer:
Strategic Partnership
Explanation:
This is a arrangement where two or more companies come together under contractual agreement to work as one in other to achieve a goal or deliver a project, for the benefit of both parties.
In most cases one of the parties has a project to execute but lacks the resources to adequately execute it and as a result needs support from one or two more partners. They more or less become a joint venture for an agreed upon length of time.
Answer:
Explanation:
1. NPV = -1,700,000 + 2,055,000 * (1-0.008) / 1.02
= $298,588.24
2. Yes order should be fulfilled
3. Break-even probability = 1 - 1,700,000 * 1.02 /2,055,000
= 1 - 0.843795
15.62%
Answer:
1) October 1 2015, Cash $39.2million Dr
Notes Payable $39.2million Cr
2) December 31, 2015 Interest expense $0.784million Dr
Interest Payable $0.784million Cr
3) September 30, 2016 Notes Payable $39.2million Dr
Interest Payable $0.784million Dr
Interest Expense $2.352million Dr
Cash $42.336million Cr
Explanation:
1.
When note is issued, liability is credit by the notes value and cash is credited.
2.
The adjusting entry is prepared 3 months after the note is issued so the 3 month's interest on note relates to 2015 and it should be recorded as expense and as it is payable at maturity so interest payable is credited.
3 month interest = 39.2 * 0.08 * 3/12 = 0.784million
3.
The note and interest will be payable that was accrued along with the remaining 9 months interest. Total interest is 39.2 * 0.08 = 3.136million
A limitation of bond ratings is that they focus exclusively on default risk.
When investing, the bond rating represents the creditworthiness of a corporate or government bond. It's not the same as a person's creditworthiness. Ratings are published by rating agencies and used by investment professionals to assess the likelihood of debt repayment.
Bond Rating is a character-based credit rating system used to assess bond quality and creditworthiness. Investment grade bonds are rated by Standard & Poor's from AAA to BBB- and by Moody's from Aaa to Baa3. Junk bonds have a lower rating.
Learn more about bond rating here:brainly.com/question/17667917
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Answer:
<u>Predatory</u>.
Explanation:
This predatory pricing strategy is used when a company aims to create entry barriers for new competitors, significantly lower the price to gain new customers and drive competitors away. The cons of this strategy is that in addition to being illegal, lost revenue is not always recovered, and there are other factors that drive competitors away, not just price.
