A
When you go into credit (the red) you basically loan money which means that you have to pay a "fine" called interest. so the more you loan and depending on the type of loan, the more interest you will pay.
Answer:Average issue price = $105--b
Explanation:
Preferred stock , $100 par = $260,000
number of shares issued =Preferred stock / par value preferred stock= =$260,000 / $100 = 2,600 shares
Paid in capital in excess of par = total issued price - preferred stock
total issued value = paid in capital in excess of par preferred stock + preferred stock = 14,000 + 260,000=$274,000
Average issue price = Total issue price / number of shares issued = $274,000/ 2600= 105.38 = $105
Answer:
True
Explanation:
Net present value is the present value of after tax cash flows less the amount invested.
If there is a deficiency of the present value of future cash inflows over the amount to be invested, it means the NPV is negative and the project proposal should be rejected.
Answer:
The Answer is B) Rises in the secondary market decreases.
Explanation:
When the coupon rate on newly issued bonds<u> decreases</u> relative to older, outstanding bonds, the market price of the older bond rises in the <u>secondary market.</u>
<u></u>
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate
For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.
If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.
Cheers!
Assets are items or properties that you own, and that are valuable to you. Liabilities are things that you have to pay for as a result of you using something. So, having that in mind, Quincy's liabilities are rent, student loan, and utilities, whereas his assets are cash, stocks, and jewelry.
He gets cash when he finishes his work, he gets money from stocks, and he has his jewelry that he either bought or got as a gift that he can sell for money.
