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Snowcat [4.5K]
3 years ago
11

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

Business
1 answer:
kumpel [21]3 years ago
6 0

Answer:

interest must be paid on a periodic basis regardless of earnings

Explanation:

Businesses need funds to operate and they sometimes issue bonds to get the needed bonds.

Bonds are debt instruments that are sold to investors to get funds. Interest is also paid to the bond buyer for the tenure of the bond.

The major disadvantage of using bonds as a source of bonds from the standpoint of the issuer is that interest must be paid on a periodic basis regardless of earnings.

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Eastline Corporation had 11,000 shares of $10 par value common stock outstanding when the board of directors declared a stock di
andrey2020 [161]

Answer:

e. Debit Retained earning $49,280 Credit Common stock dividend distributable $35,200

Credit Paid in capital in excess of par value(Common stock) $14,080

Explanation:

The journal entry is as follows:

Retained earnings (3,520 shares × $14)

Dr $49,280

_______ Common stock dividend distributable (3,520 shares × $10)

Cr $35,200

_______ Paid in capital in excess of par value ($49,280 - $35,200)

Cr $14,080

3 0
3 years ago
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $7.80. You have projected that di
Lina20 [59]

Answer:

The answer is $56.68

Explanation:

Solution

We recall that:

The firm paid a dividend of =$7.80

The projected growth of dividends is at a rate = 9.0%

The annual return = 24.0%

Now,

V = ($7.80 * (1.09)/(.24 - 0.9)

= (8.502)/(.24-0.9)

= (8.502) * (-0.66)

= $56.68

Therefore, this would be the most we would pay for the stock. If we paid less than that, our return would be above the 24%.

3 0
3 years ago
A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 andwill remain productive for 4 years.
bezimeni [28]

Answer:

This question is incomplete. However, I found the prompt to be as follows;

"What is the productivity measure of “units of output per dollar of input” averaged over the four-year period? "

Explanation:

To solve this question, find productivity;

Productivity in this case is total hamburgers produced divided by the total labor cost plus total equipment cost.

Productivity = # of hamburgers *52 weeks * 4 years / (total labor cost + equipment cost)

Productivity= 40,000(52)(4)/ {9,500(4) + 5000}

= 193.5 hamburgers/dollar of input

Therefore, the factory would produce about 194 burgers per dollar of input.

5 0
3 years ago
On January 1, 2021, Nana Company paid $100,000 for 6,200 shares of Papa Company common stock. The ownership in Papa Company is 1
anygoal [31]

Answer:

$372,000

Explanation:

The computation of the amount to be reported in the balance sheet is shown below:

= Number of shares of common stock × fair value of the Papa stock on that date per share

= 6,200 shares × $60

= $372,000

Since in the question it is given that the Nana company does not have significant influence over Papa Company which means that the net income, retained earning, dividend is not be considered.

Therefore, the investment should be reported at the fair value

6 0
3 years ago
Which has more elastic Supply in the short run, ice cream or oranges?
Cerrena [4.2K]
Ice Cream. E<span>lasticity is higher when the good are luxuries and ice cream has </span>to actually be made.
8 0
3 years ago
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