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myrzilka [38]
3 years ago
15

If a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at _____ simila

r debt with protective covenants.
a. a higher interest rate than
b. a lower interest rate than
c. an interest rate equal to that of
d. a slightly higher interest rate than
Business
1 answer:
Vinvika [58]3 years ago
8 0

Answer: b. a lower interest rate than

Explanation:

A protective convenant is also referred to as a restrictive covenant and it is referred to as an agreement whereby a particular company is restricted from doing certain things while a contract is still ongoing.

In this case, when a firm issues debt with no protective covenants in the indenture then the firm's debt will probably be issued at lower interest than similar debt with protective covenants. The reason for this is that the lender is protected when there is a convenant which ultimately lower the cost of debt.

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The human resource manager at Creative Minds Inc. has just calculated that the employee absenteeism rate for 2017 is 18 percent
vredina [299]

Answer:

a. Wait until 2018 and see what the turnover rate is at the end of that year

Explanation:

Absenteeism is an employee’s intentional or habitual absence from work. Employee turnover is the number or percentage of employees who leave the workplace during a specific period of time.

(b) By dealing with possible employee work overloads, the human resource manager can help reduce the stress, pressure and burden felt by employees in the workplace.

(c) By identifying causes of job dissatisfaction, the manager can understand how to make work interesting and have more satisfied and motivated employees. The same consequences can be achieved by adjusting job design (d).

(e) By identifying possible employee role conflicts, negative tension and problems can be solved. There would also be the possibility for new friendships and social cliques to be formed.

All of these measures would lead to solutions that would reduce absenteeism and turnover.

On the other hand, waiting until the end of 2018 can damage the organization severely. There would not only be an increase in absenteeism and labour turnover but a heavy decline in labour productivity and increase in errors and mistakes. This would impact sales and profitability of the entire company. It is important that the HR manager take measures to solve the problem as soon as possible.

4 0
3 years ago
Diaz Manufacturing had current liabilities worth $33,351 and long-term debt worth $300,600 in 2014. In 2013, current liabilities
Oliga [24]

Answer:

total working capital = $1,191,963

Explanation:

working capital = total current assets - total current liabilities

total current assets = cash + accounts receivable + inventories = $405,549 + $369,972 + $449,793 = $1,225,314

total current liabilities = $33,351

total working capital = $1,225,314 - $33,351 = $1,191,963

5 0
3 years ago
Which idea forms the basis of double-entry accounting?
valina [46]

Answer:

A. For every single transaction, at least two accounts will be

affected.

Explanation:

Double-entry accounting is a record-keeping method where a transaction is recorded in a minimum of two accounts. There is no upper ceiling on the actual number of accounts that may be used in a transaction.

Every account has two columns, with debits on the left and credit entries on the right. The aggregate of the debit entries must equal the result of all credit entries. If this happens, the transaction has balanced.  If not, the transaction is  "out of balance."

5 0
3 years ago
Aggregate planners attempt to balance Multiple Choice capacity and demand. capacity and costs. capacity and inventories. demand
charle [14.2K]

In the economic world, the aggregate planners are always attempting to balance the capacity and demand.

<h3>Who are the aggregate planners?</h3>

These are economic planners who are involved in the process of planning the overall capacity so that they can respond to predicted demand in a cost-effective manner.

Hence, these aggregate planners are always attempting to balance the capacity and demand.

Therefore, the Option A is correct.

Read more about aggregate planners

<em>brainly.com/question/27095236</em>

7 0
3 years ago
The Fed wants to increase the money supply (which is currently $4,000) by $200. The money multiplier is 3, and people hold no ca
Greeley [361]

Fed can achieve its goals using the given tools as shown below.

<h3>What is money supply?</h3>
  • The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
  • There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
  • A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
  • Money supply data is recorded and released, typically by a government agency or the country's central bank.
  • Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.

In the given situation, Fed can achieve its goals using the given tools:

  1. Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
  2. Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
  3. Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.

Therefore, Fed can achieve its goals using the given tools as shown.

Know more about money supply here:

brainly.com/question/3625390

#SPJ4

The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:

a. change the reserve req.

b. change the discount rate.

c. use open market operations.

5 0
2 years ago
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