Answer:
a. A Ba1 corporate bond <u>2 (not investment grade)</u>
b. A ten-year BBB- corporate bond with a YTM of 7% <u>3 (medium risk but still investment grade)</u>
c. A secured loan from Argosy Gaming, which is a B- rated firm <u>4 (less risky since it is backed by a collateral)</u>
d. A senior subordinated bond from Argosy Gaming <u>1 (highest risk)</u>
Explanation:
There are two major bond rating agencies in the US: Moody's and Standard & Poor's.
Their rankings are very similar, although the letters vary a little:
AAA: safest
AA: low risk
A: low risk
BBB: medium risk
BB: a little bit more riskier
B: risky
CCC: very high risk
CC: even riskier
C: riskiest
D: junk, in default
Answer:
410 rooms and $22,550
Explanation:
The computation of the break even point and in dollars is shown below:
Break even point in units is
= Fixed cost ÷ (Selling price - variable cost)
where,
Fixed cost is
= Salaries + Utilities + Depreciation + Maintenance
= $6,600 + $1,100 + $900 + $420
= $9,020
And, the selling price is $55
And the variable cost is
= Maid service + other cost
= $22 + $11
= $33
So, the break even point in points is
= ($9,020) ÷ ($55 - $33)
= 410 rooms
And the break even point in dollars is
= 410 rooms × $55
= $22,550
Answer:
Janice is a public accountant
Explanation:
Public accounting refers to a business that provides its services to other firms at large. By Janice being the owner of such firm she is referred to an accountant that provides her services to the public and she can also be referred to as a certified public accountant
Answer:
---------------------- - -------------------------------
Factory Payroll 21030
Cash 21030
---------------------- - -------------------------------
Goods in process 16200
Factory Overhead 4830
Factory Payroll 21030
---------------------- - -------------------------------
Explanation: The payment of the total labor factory costs must be recorded, we debit the "Factory payroll" cost account and credit the "cash" account as they were paid in cash.
Then we must allocate these costs to the production process, therefore we debit the "goods in process" account for the amount of <u>direct labor</u> consumed, and "factory overhead" for the amount of <u>indirect labor </u>consumed, and finally credit the account " Factory payroll " for the total.
Answer: If the United States eliminates its import quotas on Costa Rican sugar, <em><u>consumer surplus for American consumers of sugar products will rise.</u></em>
Here, the United States has finally decided to eliminates its import quotas on Costa Rican sugar. This will further allow the producer in Costa Rica to export more quantity of this commodity.
