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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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Suppose the economy's production function is ???? = ????K 0.3???? 0.7 . If K = 2000, N = 100, and A = 1, then Y = 246. If K and
densk [106]

Answer:

Y=38.8

Y will increase by 38.8

Y=246+38.8

Y=284.8

Explanation:

Y=A. F(K, L)

Y=A. K^0.3, L^0.7

Then

Y=246

A=1

K=2000

N or L=100

Solutions

200=1(2000^0.3, 100^0.7)

Now the question says both k & N are increased by 0.20

Therefore

Y=1(2400^0.3, 120^0.7)

Y=1(10.3 + 28.5)

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2 years ago
alli has hired mark and alexis to work for his shipping company. mark can load a truck with packages in 120 minutes. alexis can
Setler [38]
It would be 120 minutes
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Carrie thought she misplaced her checkbook for a few days. When she found it, she noticed that two checks, her cash and her debi
weqwewe [10]

Answer:

E. All of the steps above are appropriate to take if she suspects identity theft.

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Under suspicion of identity theft, it is better to take all the preventive measures listed in the example before the person who has stolen your debit card and checks makes use of them and steals the money in your bank account or makes big purchases.

3 0
2 years ago
Swifty Corporation has the following budgeted sales: January $30000, February $90000, and March $50000. 40% of the sales are for
klasskru [66]

Answer:

Total cash collection= $62,000

Explanation:

Giving the following information:

40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collected in the month of sale, and 50% the next month.

Sales:

January $30000

February $90000

March $50000

<u>Cash collection March:</u>

Sales in account February= (90,000*0.6)*0.5= 27,000

Sales in account March= (50,000*0.6)*0.5= 15,000

Sales in cash March= (50,000*0.4)= 20,000

Total cash collection= $62,000

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