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Yuliya22 [10]
3 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]3 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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The ________ is responsible for monitoring the money supply and the general stability and safety of the u. s. banking system.
____ [38]

The Federal Reserve is responsible for monitoring the money supply and the general stability and safety of u. s. banking system.

The US Central Banking System - The Federal Reserve System or Federal Reserve Board (Fed) is the most powerful economic institution in the United States and possibly the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.

The Federal Reserve promotes the safety and soundness of individual financial institutions and oversees their impact on the financial system as a whole.

The FOMC controls the country's money supply. The voting members of the FOMC are the Board of Governors, the president of the Federal Reserve Bank of New York, and the presidents of the other four Reserve Banks, who function on a rotating basis. All Reserve Bank Governors participate in FOMC policy discussions.

Learn more about Federal Reserve here brainly.com/question/25817380

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8 0
1 year ago
A7X Corp. just paid a dividend of $2.80 per share. The dividends are expected to grow at 20 percent for the next eight years and
kifflom [539]

Answer:

The price of the stock today=$560

Explanation:

We can use the expression for calculating the required rate of return to calculate the price of the stock today:

RRR=(EDP/SP)+DGR

where;

RRR=required rate of return

EDP=expected dividend payment

SP=share price

DGR=dividend growth rate

In our case:

RRR=13%=13/100=0.13

EDP=$2.80 per share

SP=unknown

DGR=20% and 8%, the average DGR=(20+5)/2=12.5%=0.125

replacing in the original expression;

0.13=(2.8/SP)+0.125

2.8/SP=0.13-0.125

2.8/SP=0.005

SP=2.8/0.005

SP=$560

The price of the stock today=$560

6 0
3 years ago
Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to produce corn. Accord
Advocard [28]

Answer:

Theory of comparative advantage states that a country has a comparative in a production of certain commodities if the opportunity cost of producing these commodities is lower than the other countries.

Here, it is given that country A is a efficient producer of tin and there are some difficulties in producing corn. So, country A have to concentrate on the production of Tin and purchase the corn from any other efficient producer.

7 0
3 years ago
The general increase in prices over time we pay for good and services is known as inflation. question 5 options: true false
Gala2k [10]

It is true that the general increase in prices over time we pay for goods and services is known as inflation.

<h3>What is inflation?</h3>

Inflation is the term used to describe an increase in the price of goods and services that households buy. It is determined by how quickly these prices fluctuate. Prices frequently rise with time, but they can also fall (a situation called deflation).

The main categories of inflation are as follows:

Demand-pull inflation: It explains how rising prices for products and services can result from increased demand. People will typically pay more for something if there is a shortage of it.

Cost-push inflation:  When demand-pull inflation is active, it frequently starts up. Businesses must raise their pricing as a result of rising raw material costs, regardless of market demand.

Built-in inflation: Employees may start requesting pay increases from their employers as demand-pull inflation and cost-push inflation take place. Employers risk experiencing a labor scarcity if they don't keep their pay competitive.

Built-in inflation occurs when a company increases employee wages or salaries while also trying to maintain profit margins by boosting prices.

To know more about inflation, visit:

brainly.com/question/28190771

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8 0
2 years ago
Sun Co. was constructing fixed assets that qualified for interest capitalization. Sun had the following outstanding debt issuanc
inessss [21]

Answer:

the interest rate that should be determined the capitalized interest is 8.57%

Explanation:

The computation of the interest rate that should be determined the capitalized interest is shown below;

= $6,000,000 ÷ ($6,000,000 + $8,000,000) × 0.08 + $8,000,000 ÷  ($6,000,000 + $8,000,000) × 0.09

= 0.0857

= 8.57%

Hence, the interest rate that should be determined the capitalized interest is 8.57%

The same would be considered

7 0
2 years ago
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