Answer:
coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.
Explanation:
warrant per share = 2*75 = $150
price of the bond = 1000 - 150 - (1000/(1.05^40))
= $707.9543177
coupon*(1 -(1/(1.05^40)))/0.05 = 707.9543177
coupon*17.15908635 = 707.9543177
coupon = 41.25827583
coupon rate = 8.25%
Therefore, coupon interest rate that the company must set on the bonds in order to sell the bonds-with-warrants at par is 8.25%.
Answer:

since 

Explanation:
U(q₁ q₂)

Budget law can be given by

Lagrangian function can be given by

First order condition csn be given by



From eqn (i) and eqn (ii) we have

Putting
in euqtion (iii) we have

since 

Managerial Accounting is different from Financial Accounting in that <em>c. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.</em>
The differences between Managerial Accounting and Financial Accounting do not arise because of Managerial accounting:
- Focuses on the organization while financial accounting focuses on projects, etc.
- Never includes non-monetary information; it includes non-monetary information than financial accounting
- Used by investors, while financial accounting is used by creditors
- Structured and controlled by GAAP.
Thus, the difference between the two is that Financial accounting is structured and controlled by GAAP and used by <em>investors and creditors</em>. Managerial accounting is not structured by GAAP and is used by <em>management</em> in decision-making.
Learn more: brainly.com/question/13592085
Answer:
this action increases banks' cash, allowing for more loans and investment.