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Vinil7 [7]
2 years ago
3

Chester currently has $17,334 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000

).
Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan?

a) A $5 dividend
b) Liquidate the entire inventory
c) Retiring the oldest bond
d) Purchasing $18,000 (000) worth of plant and equipment
Business
1 answer:
Yakvenalex [24]2 years ago
6 0

Answer: C. Retiring the oldest bond.

Explanation:

The company prone to the risk of being issued an emergency loan if retiring the oldest bond. Because

the share holder are the owners

Bonds are the debt raised by the company for the funding of its operations. This debs have to be paid along with interest through a certain period .

But if the company is unable to pay the debt, therefore, it may have to take a loan.

Equity gives the shareholders ownership in the company and there is nothing have to be paid to them.

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Jack oversees two very different workers. Kenny wants to be told exactly what to do because he is hesitant to make decisions, an
lana66690 [7]

Answer:

Directive.

Explanation:

In this scenario, Jack oversees two very different workers. Kenny wants to be told exactly what to do because he is hesitant to make decisions, and Laila wants to be told exactly what to do because she wants to get on with it. So, even though they are very different people, they both respect decisiveness. According to the path-goal theory of leadership, Jack should use the directive leadership style with Kenny and Laila.

Under a directive leadership style, leaders generally set a clearly defined objective, guidelines, roles or functions and rules for his or her subordinates (employees).

<em>Hence, it is always considered or deemed necessary to guide employees to achieve organizational success in a directive leadership style. </em>

5 0
2 years ago
Which of the following reports is an example of an analytical report? a. A report outlining the new company procedure for report
Ksenya-84 [330]

Answer:

(C) A report recommending an anti-terrorism security system for mass transit

Explanation:

An analytical report is a type of a business report that uses qualitative and quantitative company data to analyze as well as evaluate a business strategy or process, while empowering employees to make data-driven decisions based on evidence and analytics. Analytical reports offers both information and analysis and also include recommendations.

6 0
2 years ago
Read 2 more answers
Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
andre [41]

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

3 0
2 years ago
On December 31, 20x9, Pathos Food Service’s management decided to sell the Baclava division which has book value of $810,000. Ma
Novosadov [1.4K]

Answer:

$11000

Explanation:

In general terms, assets held for sale are not depreciated, are measured at the lower of carrying amount and fair value fewer costs to selling, and are presented separately in the statement of financial position The company will report $11000 in 2x10 despite meeting criteria to be classified as held for sale, a loss is still elgibe to count down in the period in which it occurs. In this case, only one-month loss is counted.

4 0
2 years ago
Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market du
elena-14-01-66 [18.8K]

Answer:

c. 11.05%

Explanation:

The computation of firm's required return is shown below:-

First we need to find out the Market Risk Premium for computing the firm's required return.

Using CAPM, we calculate Market Risk Premium

Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium

10% = 6.5% + 1 × Market Risk Premium

Market Risk Premium = (10% - 6.5%) ÷ 1

= 3.5%

Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium

= 6.5% + (1 + 3.00%) × 3.5%

= 6.5% + 1.30 × 3.5%

= 11.05%

8 0
2 years ago
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