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Yuliya22 [10]
2 years ago
7

A company is contemplating a long-term bond issue. It is debating whether to include a call provision. What are the benefi ts to

the company from including a call provision
Business
1 answer:
alex41 [277]2 years ago
7 0

Answer:

In simple words, a call option refers to the provision under which the issuing entity of the stock can repurchase it from the holders at a pre- specified price. For example- Company A issued a security for $100 to X with a 1 year call provision at the call price of $110. This, means Company A can buy back te security from X at a price of $110 after one year.

A call option is an obligation to the holder and a right to the issuer of the security. Thus, the main benefit of using a call option is that if the price of the security in the market after one year exceeds $110 then company a can buyback shares at a discounted price.

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In June, an investor purchased 200 shares of Oracle (an information technology company) stock at $37 per share. In August, she p
Iteru [2.4K]

Answer:

the  weighted mean price per share is $38.76

Explanation:

The computation of the weighted mean price per share is given below:

= (200 shares × $37 per share + 270 shares × $36 per share + 490 shares × $41 per share) ÷ (200 shares + 270 shares + 490 shares)

= ($7,400 + $9,720 + $20,090) ÷ (960 shares)

= $37,210 ÷ 960 shares

= $38.76

Hence, the  weighted mean price per share is $38.76

4 0
2 years ago
Read 2 more answers
The Shaffer Auto Company has purchased a large parcel of land forâ $1 million. The company recently discovered that the land is
dolphi86 [110]

Answer:

O D $0

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Since the land is worthless, there is no next best use of the land. Thus, its opportunity cost is zero.

I hope my answer helps you

6 0
2 years ago
A _____ primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a s
Lilit [14]

A business level strategy primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

5 0
3 years ago
In a perfectly competitive market
lawyer [7]

Answer:

D. No seller can influence the price of the product

Explanation:

A perfect market for competition is a market which has a high level of competition.  

It has the following features-

1. With regard to the market, knowledge is perfect in this rivalry between producer and consumer.  

2. Free entry, and exit

3. Deals with same or homogeneous products

4. The buyers and sellers are more in this market

5. There is no transport cost

Moreover, the average revenue and the marginal revenue are equal.

So, the correct option is D.

6 0
3 years ago
A business function, like accounting and human resources, which moves information about people, products, and processes across t
Whitepunk [10]

Answer:

The correct answer is "management information systems"

Explanation:

The management information system (MIS) is a system of financial information, such as accounting and human resources, that provides valuable information in order to take business decisions and solve the problems of the company. The management information system generates normal reports on operations for every level of management.

8 0
3 years ago
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