1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serggg [28]
3 years ago
11

IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value or the company can buy the

required bonds on the open market. IBM will choose to buy the required bonds on the open market if the bonds are traded at ______ in the market. Select one: a. $1850 b. $1116 c. $ 990 d. $1049 e. $1053
Business
1 answer:
Licemer1 [7]3 years ago
8 0

Answer:

c. $990

Explanation:

I am assuming that the par value of the bonds is $1,000. If the market price of the bonds is above $1,000, IBM can choose to redeem them at par value. E.g. if market value is $1,049, they can redeem them at $1,000 resulting in a $49 gain.

But if the bonds are selling below par value (under $1,000), then IBM should redeem them at market price since they will spend less money. E.g. if the market price is $990, why would they buy them at $1,000?

You might be interested in
Marginal revenue for a monopolist is computed asa.average revenue times quantity divided by price.b.total revenue divided by qua
aksik [14]

Statement that explains Marginal revenue and it can be computed for a monopolist is C:sold.c.change in total revenue per one unit increase in quantity sold.

  • Marginal revenue  can be regarded as central concept in microeconomics which focus on additional total revenue that us been gotten by increasing product sales by 1 unit.

  • In monopolist,it can be computed by change in total revenue with respect to a unit increase that is been sold.

Therefore, option C is correct.

Learn more

brainly.com/question/25404320?referrer=searchResults

7 0
2 years ago
The following information is from Amos Company for the year ended December 31, 2019.
Juliette [100K]

Answer:

Explanation:

The preparation of the statement of retained earnings for Amos Company is shown below:

Retained earnings at December 31, 2018 (before discovery of error) $858,000

Less: Depreciation expense two years ago -$45,600

Add: net income $209,000

Less: Cash dividends declared and paid during the year -$11,000

Retained earnings at December 31, 2019             $1,010,400

3 0
3 years ago
The vice president of operations of your company, which makes packaged foods, is thinking about benchmarking manufacturing proce
disa [49]

Answer:

The correct answer is letter "C" and "D": Benchmarking shows the solutions others have found for common problems; Benchmarking allows companies to review their internal processes in an unbiased fashion.

Explanation:

Benchmarking is an analysis that companies make of the best performer in their industries. The objective is to compare the techniques and processes to the top entity to find out which practices can be implemented in the firms to improve their efficiency and effectiveness.

<em>For the comparison to be accurate, the firm must make an unbiased study of its current method of operations. Only then, the firm can review which problems it has in common with the top-industry company and how this corporation overcame the issues.</em>

4 0
3 years ago
Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not
Brut [27]

Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0
3 years ago
An ad campaign by Suave shampoo asked television viewers to identify the heads of hair of women who used Suave shampoo and condi
Paraphin [41]

Answer:

Suave is most likely using<u> below-market pricing</u> or<u> the penetration pricing strategy.</u>

Explanation:

Penetration pricing is one of the pricing strategies used by the companies. In this strategy, the company gains the customer's attention and market shares by offering their products at low price. This increases the demand of the product or service in the future. This strategy involves below-market pricing to sell the products.    

8 0
3 years ago
Other questions:
  • Continuous reinforcement schedules are most useful during which phase of learning
    9·1 answer
  • Plastics net, hospital network.com, textile web, and ebay business are all examples of
    12·1 answer
  • July 15 Declared a cash dividend payable to common stockholders of $169,000. Aug. 15 Date of record is August 15 for the cash di
    10·1 answer
  • Jed Castanza transfers $90,000 of cash to the JN partnership for a 60 percent interest in the JN partnership. Ned transfers a bu
    13·1 answer
  • You are the international manager of a U.S. business that has just developed a revolutionary new personal computer that can perf
    5·1 answer
  • Denise Company manufactures three products from a joint process. Joint costs for the year amounted to​ $250,000. The following d
    14·1 answer
  • You buy a house for $299,000.
    5·1 answer
  • A study conducted by Alberto Alesina and Lawrence Summers concluded that countries with​ ________ had lower inflation rates than
    9·1 answer
  • A human services worker has begun a plan of action for a juvenile offender. She discovers he has skipped a couple of counseling
    9·1 answer
  • Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note t
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!