Answer:
Regarding the laws. The acts of every human being are agreed to be in compliance with the law. But in practice this is not the case so it must be a comparison to what is said by law at each situation that is intended to be judge as ethical or unethical.
Answer:
$3.76
Explanation:
Calculation of the implied value of each warrant
First step is to find the straight-debt value
Straight-debt value:
N = 20
I/YR = 15
PMT = −120
FV = −1000
PV = $812.22
Using this formula
Total value = Straight-debt value + Warrant value
Where,
Total value =$1,000
Straight-debt value=$812.22
Warrant=50
Let plug in the formula
$1,000 = $812.22 + 50
Second step is to find the warrant value
Warrant value= ($1,000 −$812.22)/50
=$187.78/50
=$3.7556
Approximately $3.76
Therefore the implied value of each warrant will be $3.76
Answer:
C. Build consumer traffic
Explanation:
By lowering the prices of daily essentials like milk and eggs Schnucks Supermarkets is building consumer traffic in their stores. The lower prices will tend to attracts more and more consumers because of that demand principle of the lower the prices the higher the demand. When the consumers increases what the supermarket achieves is a bigger consumer traffic in their store.
Answer: c. earns a higher return than the rate paid on debt.
Explanation:
If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.
ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.
