Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:
Differential cost of Alternative B over Alternative A=$61,600
Explanation:
Differential Cost:
It is the difference in costs if there are more than one alternatives and one alternative is chosen while rejecting the other alternatives.
In order to calculate the differential cost of Alternative B over Alternative A, including all of the relevant costs we first calculate the total cost of both alternatives and then tae the difference.
Total Of Alternative A=Material Cost+Processing Cost+Equipment Rental+occupancy costs.
Total Of Alternative A=$28000+$34000+$11000+$19500=$92,500
Total Of Alternative B=Material Cost+Processing Cost+Equipment Rental+occupancy costs.
Total Of Alternative B=$64000+$34000+$28500+$27600=$154,100
Differential cost of Alternative B over Alternative A=Total Of Alternative B-Total Of Alternative A
Differential cost of Alternative B over Alternative A=$154,100-$92,500
Differential cost of Alternative B over Alternative A=$61,600
Answer:
Option A. There exist economies of scope between diversified business units
Explanation:
The reason is that diversification is lowering the industry risk of the business the company is in by investing in several other industries. This helps us to lower the risk and have a steady returns in the subsequent years. This means uncertainty related to cash flows is lowered and this has also increased the chances of cash surplus for subsequent years.
Furthermore, if the investments made in diversified business units possesses economies of scope, which means that we are in related diversification because we are manufacturing different but similar goods which are substitutes to each other from large to some extent. This brings economies of scope and would lower the total operating cost of company. Hence the <u>Option A</u> which says that economies of scope does add value to the company is the right option.
Option B is not preferable option as the option of investing in different businesses is choosen in the option A.
Option C is again the same as Option B and the difference is that it uses the word several unrelated businesses instead of comprehensive business portfolio which is the same thing. Hence <u>Option C</u> is also not preferable option here.
<u>Option D</u> is incorrect because when we acquire an organization it is the move of increase in risk portfolio because acquisitions are mostly not a sound investments and not a part of diversification strategy as the company is putting all the eggs in the single basket.
Answer:
True because in the case if the the company is producing single product then the method is simple. If the company is making number of products we have to assume a sales mix to calculate breakeven point. Reaching breakeven point is not easy in multi products case. To calculate breakeven point we have to calculate weighted average contribution per unit to put the values in the following formula:
Breakeven point (units) = Fixed cost/ weighted average cost per unit
When a data analyst identifies and classifies keywords from customer reviews to improve customer satisfaction, this is an example of categorizing things.
<h3>What is data?</h3>
Data can be defined as a representation of factual instructions (information) in a formalized and structured manner, especially as a series of binary digits (bits) or strings that are used on computer systems in a company.
<h3>Who is a data analyst?</h3>
A data analyst can be defined as an expert or professional who is saddled with the responsibility of inspecting, transforming, analyzing, and modelling data with the sole aim of discovering useful information, providing insights, and creating informed conclusions, so as to support decision-making.
<h3>The data analyst six (6) problem types.</h3>
Generally, there are six (6) problem types that are associated with a data analyst and this include the following:
- Making predictions
- Categorizing things
- Spotting something unusual
- Identifying themes
- Discovering connections
- Finding patterns
In this context, we can infer and logically deduce that a data analyst identifying and classifying keywords from customer reviews in order to improve customer satisfaction is an example of categorizing things.
Read more on data analyst here: brainly.com/question/27853454
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