All categories

3 years ago

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.

You might be interested in

If you say $4500 at an interest rate of 13% per year, how much will you have at the end of seven years

SashulF [63]

Explanation:

I think it might be 5455$

4 0

1 year ago

What are extension strategies?

sergeinik [125]

Answer:

Below:

Explanation:

An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline. Extension strategies include rebranding, price discounting and seeking new markets.

Hope it helps...

It’s Muska..≧◔◡◔≦

8 0

2 years ago

Read 2 more answers

According to the CAPM, what is the expected market return given an expected return on a security of 17.2%, a stock beta of 1.6,

seropon [69]

Answer:

Expected market return is 13%

Explanation:

CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.

As per given data

Expected return = 17.2%

Stock beta = 1.6

Risk free rate = 6%

According to CAPM

Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market return - Risk free rate )

17.2% = 6% + 1.6 × ( Market return - 6% )

17.2% - 6% = 1.6 × ( Market return - 6% )

11.2% = 1.6 × ( Market return - 6% )

11.2% / 1.6 = Market return - 6%

7% = Market return - 6%

7% + 6% = Market return

Market return = 13%

3 0

3 years ago

In your own what is the management?

maria [59]

Answer:

can you explain this a little better how u have it makes no sense

8 0

2 years ago

After reaching the break-even point, a company's net operating income will increase by the?

ArbitrLikvidat [17]

The answer is Contribution Margin.

What is break-even point?

A transaction or investment's breakeven point (break-even price) is established by comparing the market price of an asset to its initial cost; the breakeven point is reached when the two prices are equal. In business accounting, the breakeven point is calculated by dividing the entire fixed costs of production by the revenue per unit less the variable costs per unit. Those expenses that don't fluctuate regardless of how many units are sold are referred to in this context as fixed costs. The production level at which all sales for a product net the same amount of money as all expenses is known as the breakeven point.

To know more about break-even point visit:

brainly.com/question/12181423

#SPJ4

7 0

2 years ago