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eimsori [14]
2 years ago
8

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general resul

t is that:A. the firm will select only all-equity financed projects.B. stockholders expropriate value from bondholders by selecting high-risk projects.C. the firm will always select the lowest-risk project available.D. bondholders expropriate value from stockholders by selecting high-risk projects.E. the firm will rank all projects and select the project which results in the highest expected firm value.
Business
1 answer:
Oksana_A [137]2 years ago
8 0

Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.

Explanation:

Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.

Therefore, option B is the answer.

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B

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Its reserve increase by less than 50 because of reserve requirement

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(I) Because interest rates on Treasury bills are more volatile than rates on long-term securities, the return on short-term Trea
kherson [118]

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B) (I) is false, (II) true.

Explanation:

Even though short term rates (Treasury bills) are much more volatile than long term rates (Treasury bonds), it is normal that the rate of return on Treasury bills is lower than the rate of return on Treasury bonds. Some of the reasons why Treasury bills have such a low rate of return is that they are very liquid investments and they don't pay any periodic interest.

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3 years ago
I'LL GIVE BRAINLIST!!!! AND 50 POINTS!!!!
den301095 [7]

the value of accomplishment, success, or reaching your work goals *achievement*

how much you value your surrounding work environment and your level of activity, independence, pay, and security

*comfort*

the value of social service, or having moral values in your work

*altruism*

your level of self-independence and creativity to do your job the way you would like to do it

*autonomy*

how much you value advancement in the company and the social status you get from your job

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how much you value a company’s policies and procedures, and supervision of the actions of other employees

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3 years ago
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Kinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to pro
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Answer:

Operating costs = $7,000 x 5 years = $35,000

Operating costs = $2,600 x 5 years = $13,000

Explanation:

Operating costs = $7,000 x 5 years = $35,000

Operating costs = $2,600 x 5 years = $13,000

The current copier should be replaced. The incremental analysis shows that net income for the five-year period will be $3,000 higher by replacing the current copier.

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