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lys-0071 [83]
3 years ago
6

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.

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As an alternative to selling shares of stock as a means of raising funds, a large company could, instead, a. use equity finance.
USPshnik [31]

A large company could use selling bonds as an alternative to selling shares of stock as a means of raising funds.

<h3>What do you mean by bond selling?</h3>

The company will look for potential buyers on the market. When the company acts as principal, as it does in the majority of bond transactions, it either sells you a bond that it already has (a process known as selling the bond from inventory) or purchases the bond from you for its own inventory.

The majority of bonds pay interest twice a year until they mature. The right to receive interest payments is forfeited if a bond is sold before its maturity date.

To know more about bond selling refer to: brainly.com/question/23032254

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7 0
2 years ago
MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan compa
Grace [21]

Answer:

Legal Risk

Explanation:

Legal risk are damage, financial, reputational losses or any other form of loss received by a business due to negligence in compliance with the law related to the business. They are prospective fines or loses that a business or an organization receives for not complying with the business law and regulations.

In this case, the prospective loss could come by associating with Azpak limited which have inadequate protection of intellectual property rights.

3 0
3 years ago
Read 2 more answers
A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $5,200,000
Diano4ka-milaya [45]

Answer:

Total debt = $3,900,000

Explanation:

Total Assets = $5,200,000

Debt Ratio    = 75%

Debt              = 75% x $5,200,000

                     =$3,900,000

Hence, the 25% account for equity finance $1,300,000

8 0
4 years ago
If the seller dies before you accept the offer, the contract is unenforceable under the defense of impossibility. False True
Elodia [21]

Answer:

of the seller dies before you accept the offer, the contract is unenforceable under the defense of impossibility is true

5 0
3 years ago
Favorable direct manufacturing labor efficiency variances are​ ________.
Anna35 [415]
Always credits.

Have a great day! :D
8 0
3 years ago
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