Answer:
increase the effective interest rate of borrowing
Explanation:
Cost of debt refers to the total cost a company incurs for raising debt which includes fixed coupon rate payments to bondholders.
Cost of debt is calculated using the following formula:
wherein 
= Cost of debt
I = annual rate of coupon payment
t= tax rate
NP = Net proceeds which is par value less issue expenses
when NP is taken as the base, while calculating cost of debt, it is termed as effective interest rate.
So, bond issue costs reduce the net proceeds and thus, increase the effective interest rate of borrowing for the issuer company.
Answer:
expand
Explanation:
In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.
The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.
Answer:
Debit Credit
Aug 4 Cleaning Supplies 79
Accounts payable 79
(Innovation Supplies)
Aug 19 Office Equipment 4900
Accounts Payable 4900
(Office Warehouse)
Aug 23 Cleaning Supplies 209
Accounts Payable 209
( Rubble Supplies)
Explanation:
I believe the answer is: Injury
Risk refers to the danger or negative outcomes that arise when we decided to follow a certain decision.
From the options above, taxes and rent are considered as Obligations rather than a risk.
And insurance is considered as risk management, not the risk itself.
