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2 years ago

If the coupon rate of a bond is equal to its required rate of return, then ________.

1 answer:

4 0

When the coupon rate of a bond equal to its required rate of return, then it is purchased at par since the initial investment is totally offset by repayment of the bond at maturity, leaving only the fixed coupon payments as profit. The correct answer is - is equal to par value.

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Which financing option has the highest overall costs?

katrin2010 [14]

Equity financing has the highest overall cost.

Further Explanation:

The financing options that are available to the company are equity and debt. Equity Financing refers to the issue of equity shares to the public. Debt refers to the loan taken by the company from the public or any financial institutions. The equity shareholders have the right to vote in general meetings while the debt holder does not have any such rights.

The equity shareholders are also entitled to receive dividends while debt holders are entitled to receive the interest regardless of whether the company is having a profit or not. The interest paid to debt-holders is deducted from the net profit before any tax is charged. The interest reduces the taxable income while the dividend is calculated on net profit after tax. Thus, the cost of using debt finance is lower as the amount which is paid as the interest is charged against the tax.

Therefore, Equity financing involves a higher cost than Debt financing.

Learn more:

1. Learn more about raising the equity

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2. Learn more about the problem related to equity theory

brainly.com/question/3771927

3. Learn more about the short-term financial goals

brainly.com/question/2451748

Answer details:

Grade: Senior School

Subject: Financial Management

Chapter: Cost of Capital

Keywords: Equity financing, the highest overall cost, debt financing, financing options, capital, business, shareholder’s fund, loan, financial management, raise, issue.

4 0

2 years ago

Read 2 more answers

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last yea

wolverine [178]

Answer:

Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

Explanation:

From the question, we have:

Applied manufacturing overhead cost = $29,000

Actual manufacturing overhead cost = $27,000

Cost of Goods Manufactured for the year = $71,000

Overapplied manufacturing overhead = Applied manufacturing overhead cost - Actual manufacturing overhead cost = $29,000 - $27,000 = $2,000

Therefore, we have:

Cost of Goods Sold = Cost of Goods Manufactured for the year - Overapplied manufacturing overhead = $71,000 - $2,000 = $69,000

Therefore, Cost of Goods Sold, after adjustment for overapplied manufacturing overhead, for the year must have been $69,000.

8 0

1 year ago

The prospects for many types of jobs are ____ as automation progresses from manufacturing to clerical and retail jobs. Select on

Bingel [31]

Answer:

Poor

Explanation:

Automation has made certain jobs redundant and machines can now carry out most of the functions usually carried out by labour. As a result, the prospects for many types of jobs is low

3 0

1 year ago

Poor internal compliance with supply processes may indicate that internal customers do not trust the supply process or the suppl

bagirrra123 [75]

That statement is True

Internal Compliance is carried out to ensure that all process are done according to regulated rules and standard

Poor internal compliance could indicate that certain process is not carried out according to standard, which could damage the trust of internal customers

3 0

2 years ago

The bargaining power of consumers can be the most important force affecting competitive advantage. Consumers gain increasing bar

viva [34]

Answer:

C. If consumers are informed about products, prices, and costs across countries

D. If consumers are particularly important to the seller

YES. As having a complete information will allow for arbitrage between areas and if they are a big fish of the seller business the seller will be less likely to roll-over the consumer in negociation.

Explanation:

A. If switching to competing brands or substitutes is expensive

NO. If switching is expenses then, the exit-barrier is higer thus, less bargaining power as we are less likely to leave

E. If consumer demand is rising

NO. Is demand rises then the supplier will have bargain power as it has where to sale the product if we leave

3 0

2 years ago

If the coupon rate of a bond is equal to its required rate of​ return, then​ ________.

If the coupon rate of a bond is equal to its required rate of return, then ________.