All categories

3 years ago

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

Business

1 answer:

ddd [48]3 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.

You might be interested in

Action verbs you might use on a job application

kirill [66]

Accomplished, Achieved, Active in, Awarded, Assisted, Broadened, Built, Chaired, Championed, Completed, Delegated, Distinguished, Enacted, Enhanced, Facilitated, Formulated, Graduated, Granted, Handled, Helped, Implemented, Improved, Increased, Initiated, Joined, Kept, Led, Licensed, Managed, Mastered, Navigated, Netted, Obtained, Outlined, Performed, Placed, Qualified, Received, Recorded, Secured, Served, Taught, Trained, Understudied, Undertook, Verified, Volunteered, Widened, Worked.

Hope these help!!!

4 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

yulyashka [42]

Answer:

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600 when the fixed costs are not 20 %

Yes Strawberry line should be dropped as it reduces the overall profit by$ 1720 even when the fixed costs are 20 %

Explanation:

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Fixed costs allocated 35,600 28,480 7120 Decrease

Operating profit (loss) 13,200 14,920 (1720) Increase

Working

Total Fixed Costs Reduced will be = 35,600 *20%= 7120

Here we see the profit is increased by 1720 therefore strawberry line should be dropped.

Cotrone Beverages

Differential Analysis

Totals Totals Difference / Change

including (less) Without (equals)

Strawberry Strawberry

Sales 253,200 167,600 85600 Decrease

Variable costs 201,400 124,200 77200 Decrease

Contribution margin 51,800 43,400 8,400 Decrease

Fixed costs allocated 35,600 23,600 12000 Decrease

Operating profit (loss) 13,200 16,800 (3,600) Increase

Yes Strawberry line should be dropped as it reduces the overall profit by$ 3600

Working

We find the totals with and without the strawberry product line and then subtract to find the differential costs

Cotrone Beverages

Product Original Strawberry Orange Total

Sales $65,200 $85,600 $102,400 253,200

Variable costs 44,000 77,200 80,200 201,400

Contribution margin $21,200 $8,400 $22,200 51,800

Fixed costs allocated 9,400 12,000 14,200 35,600

Operating profit (loss) $11,800 $(3,600) $8,000 13,200

If we drop the strawberry line then the new totals would be

Product Original Orange Total

Sales $65,200 $102,400 167,600

Variable costs 44,000 80,200 124,200

Contribution margin $21,200 $22,200 43,400

Fixed costs allocated 9,400 14,200 23,600

Operating profit (loss) $11,800 $8,000 16,800

6 0

3 years ago

The next time you need to make a choice, your brain will use what what method?

Katarina [22]

Answer:

Imagine you have just flicked a lighter. If you don’t see the flame, you will naturally try a second time. If after the second attempt it does not strike a flame, you will repeat your action again and again until it does. Eventually, you’ll see the flame and you’ll know that your lighter works. But what if it doesn’t? How long are you going to flick the lighter until you decide to give up?

Our everyday life is full of such decision dilemmas and uncertainty. We constantly have to choose between options, whether we make the most ordinary decisions – should I continue flicking this lighter? – or life-changing choices – should I leave this relationship? We can either keep on doing what we are already used to do, or risk unexplored options that could turn out much more valuable.

Some people are naturally inclined to take more chances, while others prefer to hold on to what they know best. Yet being curious and explorative is fundamental for humans and animals to find out how best to harvest resources such as water, food or money. While looking at the Belém Tower – a symbol of Portugal’s great maritime discoveries – from my office window, I often wonder what drives people to explore the unknown and what goes on in their brains when weighing pros and cons for trying something new. To answer these questions, together with Dr. Zachary Mainen and his team of neuroscientists, we investigate how the brain deals with uncertainty when making decisions.

Explanation:

It is well known that the decision-making process results from communication between the prefrontal cortex (working memory) and hippocampus (long-term memory). However, there are other regions of the brain that play essential roles in making decisions, but their exact mechanisms of action still are unknown.

4 0

3 years ago

On august 31 of the current year, harvey co. decided to change from the fifo periodic inventory system to the weighted-average

Vsevolod [243]

The answer is "As of January 1, Year 1".

The cumulative impact of an adjustment in accounting rule squares with the difference between retained income toward the start of time of the change and what retained profit would have been if the change was applied to all influenced earlier periods, accepting comparative financial statements are not exhibited. Starting retained profit of the earliest year exhibited is balanced for the cumulative impact of the change.

4 0

3 years ago

In his company's most recent downsizing, Emil was one of only five workers in his department who was not let go. Emil's employer

torisob [31]

Answer:

The correct option is: c. Mistrust

Explanation:

Mistrust or distrust is described as the lack of confidence in other individual or organization, experienced by an individual in case of uncertainty and potential risks.

In the given example, due to the reduced workforce or the downsizing of Emil's company, Emil is experiencing a lack of confidence and trust in his company.

Therefore, Emil is most likely experiencing feelings of mistrust or distrust in the company's management.

7 0

3 years ago