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gregori [183]
2 years ago
7

Chester currently has $14,000,000 in cash and management has decided to issue stocks and bonds worth an additional $8,000,000. T

here are 2,566,559 shares outstanding. 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?
Business
1 answer:
slava [35]2 years ago
6 0

Answer:

Retiring the oldest bond

Explanation:

Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan

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XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank
antiseptic1488 [7]

Answer:

The maximum future dollar cost of meeting this obligation using the call option is $6,545,400

Explanation:

payable obligation = 750,000,000 YEN

premium payable on call option = 750,000,000*0.012

                                                      = $90,000

the interest rate is 6%

future value of call option premium = $90,000(1+0.06)

                                                           = $95,400

As the expected future spot price is 109 YEN per dollar which is higher than exercise price of $0.0086

Amount payable under call option = (750,000,000*$0.0086)+$95400

                                                          = $6,545,400

Therefore, The maximum future dollar cost of meeting this obligation using the call option is $6,545,400

6 0
2 years ago
__________ provide a more level ride by raising or lowering a car's wheels
Anna [14]

The correct answer is the suspension stability system. This is defined as a kind of detection by which it detects driving conditions by means of lowering or raising the vehicle’s wheel that makes the ride more leveled or more smoother.

7 0
2 years ago
Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 perce
Dahasolnce [82]

Answer:

A. Debit: Bad Debt Expense 2,500

Credit: Allowance for Doubtful Accounts 2,500

250,000 x .01 = 2,500

B. Debit: Bad Debt Expense 2,750

Credit: Allowance for Doubtful Accounts 2,750

3,000 - 250 = 2,750

8 0
2 years ago
Measures defined by management and used to internally evaluate the success of a​ firm's financial, business​ process, customer,
ladessa [460]

Complete Question:

Measures defined by management and used to internally evaluate the success of a firm's financial, business process, customer, and learning and growth are called

A. parameters.

B. the balanced scorecard method.

C. BPM.

D. KPIs.

E. benchmarks.

Answer:

D. KPIs.

Explanation:

Measures defined by management and used to internally evaluate the success of a​ firm's financial, business​ process, customer, and learning and growth are​ called KPIs.

KPIs is simply an acronym for key performance indicators.

4 0
2 years ago
Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commiss
Ksju [112]

Natalie wants to make a 25% profit on a $70000 sale. That would be:

(125 ÷ 100) × 70000 = $87500.

Natalie wants to make $87500. But the agent would charge a 6% for the sale, Natalie will add a 6% to the $87500, that would be:

(106 ÷ 100) * 87500 = $92750.

On this $92750, there's a closing cost of $1200,

Add $92750 + $1200 = $93950.

$93950 to the nearest hundred will be $94000.

Natalie should make the final sale price $94000 in order to make a profit of %25.

7 0
2 years ago
Read 2 more answers
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