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Evgen [1.6K]
3 years ago
14

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of ans

wer choices bond interest is deductible for tax purposes. interest must be paid on a periodic basis regardless of earnings. income to stockholders may increase as a result of trading on the equity. the bondholders do not have voting rights.
Business
1 answer:
ira [324]3 years ago
7 0

Answer:

interest must be paid on a periodic basis regardless of earnings.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

The disadvantages of bonds are listed below as;

1. Bonds can decrease a person's return on equity.

2. Bonds require a payment of the principal amount.

3. Bonds typically require a payment of periodic interest.

Generally, most bonds with shorter maturity time respond less dramatically to changes in interest rates when compared to bonds having longer maturity. Thus, the risk associated with short bonds isn't really significant because their interest rates are less likely to change substantially within that short period of time unlike bonds with longer maturity.

Hence, regardless of the earnings by bondholders, interest must be paid on a periodic basis on a long-term bond.

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Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann
VashaNatasha [74]

Answer:

So, accounting rate of return = 33 %

Explanation:

given data

net income after tax = $179,850

initial cost = $545,000

time = 7 year

salvage value = $34,000

we will get here  the accounting rate of return

solution

as we know that accounting rate of return is express as

accounting rate of return = Net income ÷ initial investment    .................1

put here value and we get

accounting rate of return = \frac{179850}{545000}  

So, accounting rate of return = 33 %

7 0
2 years ago
If an issuer files a registration statement with the sec under the securities act of 1933, registration is effective:
Andrej [43]

Answer:

Registration statement for securities under the Uniform Securities Act are effective for One year from the effective date. The SEC accomplishes theses goals primarily by requiring that companies disclose important financial through the registration of securities.

Explanation:

3 0
2 years ago
Which of the following is an example of a financial asset?
Margaret [11]

Answer:

A. cash

Explanation:

cash is used in finance

5 0
2 years ago
Wilderness Fanatic, a manufacturer of outdoor goods, is willing to supply 1000 of its Blue Thrash tandem kayaks when the price p
liraira [26]

1) let P represent Price, and since the dependency is linear, the supply equation will take the following form:

A) Y- Y_{1\\} =  (\frac{Y_{1} -Y_{2} }{P_{1} -P_{2} } ) (P_{1} -P_{2} )

⇒ Y - 1,000 = (\frac{-250}{-100} ) (P-690)

⇒ Y - 1,000 = \frac{5}{2} (P-690) = (\frac{5}{2})P - 345

⇒ Y = (\frac{5}{2})P + 1,000- 345

⇒ Y = (\frac{5}{2})P + 655, therefore,

P = (\frac{2}{5}) (Y-655)

B) When Y = 1,130, the price would be:

⇒P =   \frac{2}{5} (1,130 - 655)

⇒ P =  \frac{2}{5} (485)

Therefore:

P = $194


See the link below for more supply related questions:
brainly.com/question/2822773

 

5 0
2 years ago
The overall learning goals for an educational program like the one you’re taking are called _______.
Gennadij [26K]
B. Objectives. Grades are a result of the course
6 0
3 years ago
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