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2 years ago

Stockholders have residual claim on all assets after debt is paid and therefore have ____ risk than bondholders.

Business

1 answer:

ddd [48]2 years ago

8 0

Answer:

b) higher

Explanation:

As we know that the bondholders would be have more priority as compared with the shareholders either they have high risk as compared with the bond holders

So as per the given situation, in the case when the stockholder has the residual claim on all the assets after the payment of debt. This leads to high risk as compared with the bondholders

Therefore the correct option is B.

Read more on deed restrictions here:

brainly.com/question/4510408

#SPJ1

4 0

2 years ago

Read 2 more answers

Which of the following tasks is likely to be done by the HR department?

Blizzard [7]

I believe the answer is D. Hiring employees.
Hope that helped.

6 0

3 years ago

Read 2 more answers

Mauro Products distributes a single product, a woven basket whose selling price is $13 per unit and whose variable expense is $1

Ira Lisetskai [31]

Answer:

Break-even point in unit sales = 2,300 units

Break-even point in dollar sales = $29,908.97 (Approx)

New break-even point in unit sales = 2,600 units

New break-even point in dollar sales = $33,810.14 (Approx)

Explanation:

Given:

Selling price = $13 per unit

Variable expense = $11 per unit

Fixed expense = $4,600

Computation:

Break-even point in unit sales = Fixed expense / [Selling price - Variable expense]

Break-even point in unit sales = 4,600 [13-11]

Break-even point in unit sales = 2,300 units

Contribution margin = [(13-11)] / 13 = 15.38%

Break-even point in dollar sales = Fixed expense / Contribution margin

Break-even point in dollar sales = $4,600 / 15.38%

Break-even point in dollar sales = $29,908.97 (Approx)

New break-even point in unit sales = [4,600+600][13-11]

New break-even point in unit sales = 2,600 units

New break-even point in dollar sales = Fixed expense / Contribution margin

New break-even point in dollar sales = $5,200 / 15.38%

New break-even point in dollar sales = $33,810.14 (Approx)

4 0

3 years ago

True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.

MA_775_DIABLO [31]

Answer:

True

Explanation:

This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.

Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.

5 0

3 years ago

Which is not a part of your budget?

rewona [7]

Answer:

d.) discretionary expenses

Explanation:

We can explain going further into what is each item.

<u>A and B are your income </u>(for this question don’t sweat about the difference between gross and realized). They will constitute all the money you have in that period (the period will depend on the regularity of your income, it could be weekly, monthly, etc.).

Your fixed expenses are the things you will expend money on which, no matter what happens, will not change (it could be your rent, tax, health insurance, etc.).

Discretionary expenses, however, are costs that are things that you WANT, not NEED. It could go anywhere from a new shoe to a new boat (if you´re feeling rich, that is lol). That kind of expense will impact your available money (hey, nothing is free) but is not part of your budget as it is not a planned cost.

However, is important to note that if you wanna be super Monica Geller with your money you should forecast your discretionary expenses. Using your history as a base for calculating will eliminate most of the margin error.

4 0

3 years ago