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Burka [1]
2 years ago
15

Dylan Corporation issues for cash $2,000,000 of 8%, 15-year bonds, interest payable annually, at a time when the market rate of

interest is 9%. The straight-line method is adopted for the amortization of bond discount or premium. Which of the following statements is true?
a. The amount of annual interest paid to bondholders increases over the 15-year life of the bonds.

b. The carrying amount decreases from its amount at issuance date to $2,000,000 at maturity.

c. The amount of annual interest expense decreases as the bonds approach maturity.

d. The amount of annual interest paid to bondholders remains the same over the life of the bonds.
Business
1 answer:
bazaltina [42]2 years ago
6 0

Answer:

D) The amount of annual interest paid to bondholders remains the same over the life of the bonds.

Explanation:

Since Dylan's coupon rate was lower than the market rate, then they will have to sell their bonds at a discount, i.e. at a lower price than face value. The price of the bond will be lower than the face value, but the actual coupon paid will remain the same during the 15 years.

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An industry dominated by a few large firms, all of which struggle with product differentiation, is known as A. multi-domestic. B
denis23 [38]

Answer:

A

Explanation:

Multidomestic

Multidomestic describes a set of strategies used by companies that operate in more than one country at a time. When businesses take their operations into markets overseas, they will naturally tend to act differently than their larger competitors, many of them choosing a multidomestic strategy. A multidomestic company is a business that uses a different approach in each of the markets it operates in.

A good example of a multidomestic company is Nestlé. Nestlé uses a unique marketing strategy and sales approach for each of the markets in which it operates. They conform their products to local tastes by offering different products in different markets.

8 0
2 years ago
Why was friedrich von hayek against government intervention in an economy?
Ray Of Light [21]
The answer top the question stated above is letter D. It would improve the economy's situation.

For F<span>riedrich Von </span>Hayek, less government intervention<span> meant more </span>economic freedom. He believed that if  people are free to choose, then the economy runs more efficiently. 
Thus, it would improve the economy's situation.
3 0
2 years ago
Read 2 more answers
What would a competitive retailer have to do to get your patronage?
SOVA2 [1]
For a competitive retailer to get a consumer's patronage, they should implement strategies of attracting their consumers of which will likely gain their support and make their consumers many than of their competitors. An example of this is by having to offer discounts in means of attracting other consumers to buy their products as a means of having to gain their support.
4 0
2 years ago
Peppercorn Inc. has outstanding nonconvertible preferred stock​ (cumulative) that pays a quarterly dividend of​ $1.00. If your r
Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = <u>Quarterly dividend</u>

                                      Quarterly required rate of return

                                   = $1.00

                                       0.08

                                   = $12.5      

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

5 0
2 years ago
A marketing manager targeting Generation Y should be aware that this group is turned off by:A) the "soft sell".B) overt branding
AysviL [449]

Answer:

B) overt branding practices

Explanation:

Generation Y is the group of people who were born between 1990s to early 2000s. Probably most commonly known as millennials.

Statistics shown that when it come to choosing a product, millennial tend to choose the individuals that they can trust/admire rather than overt branding practices. This is why online influencers market is really booming among this demographic.

On top of that ., They value the type of  advertisement that can objectively define the negative and positive characteristics of a certain product rather than advertising it as if it's 'the best product ever' like commonly done by most companies in the past.

7 0
2 years ago
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