If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>
Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.
Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.
Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.
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Answer:
It would take exactly 37 years
Explanation:
If we suppose that the economy starts at 10,000 billion dollars in 2020, the economy would only double by the year 2057, reaching a value of 20,399 billion dollars.
If we substract 2020 from 2057, we obtain 37, which is the number of years it took for this economy to double growing at a rate of 2% per year.
The answer to this question is Variable cost.
As the level of production increase , the total variable cost is increased and vice versa.
Examples of variable cost are the cost of sugar in condensed milk factory, the cost of leather in bag manufacturing, the cost of coffee beans in starbucks, etc.
Answer:
The correct answer is "Net present value"
Explanation:
The Net present value (NPV) commonly is used in projects and investments to analyze the profitability and compare it with other projects or investments to decide which is better.
Net Present Value (NPV) = Cash flow / (1 + discount rate) ^ number of time periods.
Answer:
Classification of Projects
The projects are classified as shown below:
Strategy Project:
Strategy projects supports organizations long term mission. it helps in increasing market share and revenue. Among the given projects, the strategy projects are:
b. build a 4 mile nature hiking trail.
d. Launch a new promotional campaign with Hawaii Airlines.
e. Convert 12 adjacent acres into wildlife preserve.
g. Change hotel brochures to reflect Eco-tourism image.
i. Introduce wireless internet service in cafe and lounge areas.
Operational Projects:
These projects support current business operations. Among the given projects, the operational projects are:
c. Renovate horse bran.
Compliance Projects:
These are those must do projects to function under a particular category. Among the given projects, the compliance projects are:
a. Convert the pool heating system from electrical to solar power.
f. Update all bathrooms in condos that are 10 years old or older.
h. Test and revise disaster response plan.
Not all projects are easy to classify. There are always some things falling under more than one category. Categorizing projects will help us to prioritize the implementation of the same. Compliance projects should be done at any cost. The organization's view will be reflected in the strategy projects. Operational projects can be postponed if financial budget constraint exists but compliance cannot be postponed.
