Answer:
In response to this call, the bondholders should Accept the call as call price exceeds the conversion value
Explanation:
Number of shares (if bonds are converted) = par value/conversion price = 1,000/33.33 = 30 shares
Current value of 30 shares = 30*current share price = 30*33.10 = $993.10
Call price of $1,025 is greater than the current value of converted bonds, so bondholders should accept the call
The European system of central banks' primary tool for conducting monetary policy is open market operations. It uses this tool to set the interest rate for very short-term inter-bank loans, which is known as the the overnight cash rate.
<u>Explanation:</u>
The rate at which a depository entity which is usually banks lend or borrow resources in the overnight marketplace with another depository organization, is understood as overnight cash rate. The overnight rate in many places is the interest rate which the central bank establishes to guide monetary policy.
The overnight rate offers the banks with an effective strategy of obtaining short-term funding from central bank depository. Given that a country's central bank controls the overnight rate, it can be implemented as a strong proxy for the motion of short-term interest rates for customers in the wider economy. The greater the overnight rate, the greater the cost of borrowing capital.
Answer:
False
Explanation:
An increase in financial leverage only results in a higher return on equity when the return on assets is higher than the cost of the leverage (i.e. the interest rate on debt).
Given the relationship below among, total assets, equity and debt (leverage)
total assets = equity + debt
and equity = total asset - debt,
We can deduce the equation below
Return on Equity = Return on Asset (ROA) - Return to Debt (ROD) (approximately)
Accordingly, if ROA is greater than ROD, an increase in financial leverage will result in a higher ROE. If the cost of debt (ROD) is however higher than ROA, an increase in financial leverage will result in a lower ROE.
Job Satisfaction has been the main reason why Shirley has been confronting this bottleneck
Explanation:
Some of the reasons why Shirley faced the roadblock are :-
1. Expectations - A pressure has been put on to the employees by which Shirley has not been able to cope up with it.
2. No Motivation - Shirley has no sense of being motivation to work for the organisation. which leads to loss of determination.
3.Environment - Shirley has not been given a conducive enviroment that helps the organisation to work efficiently
X = 10.71 rounded to the hundredth
