Answer:
The correct statement is Option No. 4 which is "straight bonds are more costly to issue than convertible bonds".
Explanation:
Option 4 "straight bonds are more costly to issue than convertible bonds" is true because generally convertible bonds offer low yield , so it is the lowest cost for issuers.
Answer: 12.68%
Explanation:
The Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time which is usually a year.
The formula is,
Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of compounding periods) - 1
Plugging in the figures would give,
EAR = (1 + 0.01) ^ 12 - 1
EAR = 1.01^12 - 1
EAR = 12.68%
You might notice that in the bracket I did not divide the 1% by 12. This is because the 1% was already given as the month's interest rate.
Answer:
Market development strategy
Explanation:
It's a growth strategy that aims at identifying new customer for its existing product. As per this strategy, organizations develop products that cater to a new segment apart from its existing segment.
Market development strategy can be implemented through joint ventures, export licensing or direct investment. Here, Company wants to capture new market segment of fresh graduates. So, it is demonstrating market development strategy.
Answer:
A and B
Explanation:
When you own a business you must keep in mind that most employees would rather use a windows computer rather than a Mac as they are less likely to have used them in the past. This would decrease productivity. Additionally one would have to pay for a course teaching them to use Apple computers which is unnecessary. Additionally Windows Computers are largely cheaper. These savings can be reinvested into the business
Answer:
Explanation:
A journal entry is an accounting record of the business day to day activities in the accounting books of that particular business. An appropriately recorded journal entry comprise of the amounts to be debited and credited, correct date, the description of the transaction and a distinctive reference number.
The solution diagram to the question can be seen in the image below
