If the price of the common stock declines by 50 percent, the price of the convertible bond will also decline by the same percentage
If the stock price falls, the short seller profits by buying the stock at the lower price closing out the trade. Convertible bonds tend to offer a lower coupon rate or rate of return in exchange for the value of the option to convert the bond into common stock.
Thus, if the price of a convertible bond will move in tandem with the price of the common stock, so if the stock price declines, the convertible bond price will follow suit.
Hence, convertible bonds typically carry lower interest rates payments.
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A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is offered, flotation costs will be 3 percent of the current market price of $80. The firm's marginal tax rate is 35 percent. What is the firm's cost of preferred stock financing
The company's fee for preferred stock financing is Annual dividend=75*8%=$6
Stock financing is the proper choice for organizations whose modern assets in large part include warehouse inventory. stock financing permits a company to efficaciously control its circulating capital and to enhance coins glide. the security for warehouse financing is new motors that are bought, in inventory, or in transit.
Common stock financing increases the borrowing capacity of the company. due to the fact, that commonplace stock gives a cushion in opposition to losses of creditors, the sale of not unusual inventory typically increases the credit score worthiness of the company.
Debt financing happens whilst an employer raises money through promoting debt contraptions to traders. Debt financing is the other of equity financing, which entails issuing stock to raise cash. Debt financing happens while a company sells fixed-income products, along with bonds, payments, or notes.
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So if the answer is $5,505,210. 50, you would input 5,505,210. what is forecast revenue in 2017?
Forecast revenue in 2017 is 13,642,021.
Why do we forecast revenue?
Revenue forecasting is an important part of any business plan, because it can help strategize how much and how quickly you intend on growing your company.
That said, it is also the most difficult to estimate. This is counter to things like costs and funding, which are far more under your own control.
What Is Forecasting?Forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determining the direction of future trends.
Businesses utilize forecasting to determine how to allocate their budgets or plan for anticipated expenses for an upcoming period of time.
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https://brainly.com/question/23009258#SPJ4What is a characteristic of the customer's buying task that can impact salesperson effectiveness?
Knowledge of alternatives is a characteristic of the customer buying task that can impact salesperson effectiveness.
Consumer buying process---
Consumers go through a set of sequential steps while buying a product. A buying process is the sequence of steps that a consumer takes while making a purchasing decision . A normal consumer purchases includes the recognition of needs and wants .
A consumer will not initiate a purchase without recognition of needs and wants , when consumer feels the need to buy a particular product , he will go for a purchase decision.
Role of salesperson in the selling process is to consider the needs and wants of the consumer at all phases of selling , from approaching the customer to reaffirming the buyer- seller relationship after the sale . The product offered should be capable of meeting customer's needs and wants.
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When deciding whether or not to escalate commitment to a chosen course of action, our choice should depend on:
a. the expected value of further investment.
b. our sunk costs.
option a is the correct answer
When deciding whether or not to escalate commitment to a chosen course of action, our choice should depend on: the expected value of the further investment.
Commitment bias, also known as commitment escalation, describes the tendency to stick to past actions, especially those that have been publicly demonstrated, even when they don't produce the desired outcome.
The main reason for this is an unwillingness to admit that previous decisions were wrong. We, therefore, encourage you to check the accuracy of these previous decisions by doing more to support them. Engagement escalation occurs because our thinking is not rational.
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A corporation reported cash of $25,000, total assets of $451,000, and total equity of $154,560 on its balance sheet. its common-size percent for cash equals:_____.
7.85%. Explanation: Common-size percent for cash = 14.
Many small businesses are cash-strapped and are not paying dividends as a result. For them, total capital is simply the money invested plus any subsequent income.
Shares and capital refer to the separate but related aspects of a company's finances. Equity is the amount of money available to the company for investment and is part of the company's total capital. Equity itself is the company's total assets after deducting related liabilities.
While cash has a guaranteed value (allowing for changes such as inflation), stocks can end up being much more or less valuable than anyone guessed. Cash is a commodity. Company stock is not. Candidates' reactions to stocks and cash may stem from their risk appetite.
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Which organizational pattern would be most effective for arranging the main points of a speech?
Problem-solution order would be most effective for arranging the main points of a speech.
By means of far, the most not unusual sample for organizing a speech is through classes or topics. The categories feature as a way to assist the speaker to arrange the message in a constant fashion.
A speech organizational sample refers back to the manner the statistics are organized within the speech. Organizational styles encompass chronological, spatial, cause and effect, hassle-answer, and topical.
A chronologically organized speech sample organizes its primary factors following a sequence of occasions or occurrences consistent with the time they came about. This structure works in particular properly for informative and introductory speeches.
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The relationship between the percentage change in the spot exchange rate over time and the differential between comparable interest rates in different national capital markets is known as?
The relationship between the percentage change in the spot exchange rate over time and the differential between comparable interest rates in different national capital markets is known as the international Fisher Effect.
The Fisher effect is an important relationship in macroeconomics. It shows the causal relationship between nominal interest rates and inflation. Higher nominal interest rates lead to lower inflation.
IFE Limits IFE theory is based on the Fisher effect and PPP Fisher effect limits: the difference between nominal interest rates and real inflation rates does not match.
In the short term, the IFE is generally unreliable due to the many short-term factors that affect forecasts of exchange rates, nominal interest rates, and inflation. The long-term international Fisher effect has been shown to be slightly better, but not by much.
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Which one of the following is NOT an ethical norm as conceived by the American Marketing Association?
A.) embrace ethical values like honesty, responsibility, and fairness.
B.) Forster trust in the marketing system with fair dealing.
C.) consciously avoid harmful actions or omissions.
D.) attempt to learn what consumers both want and need.
The American Marketing Association does not conceive the ethical norm to consciously avoid harmful actions or omissions. Thus, option (C) is correct.
What is American Marketing Association?American Marketing association is the group of the people in the organization working as per ethical code of the conduct by building the relationship and increasing the confidence in the marketing.
It ensures the integrity of marketing by affirming these core values: honesty, responsibility, fairness, respect, transparency, and citizenship.
The American Marketing Association does not view the purposeful avoidance of unethical acts or omissions as a moral requirement.
Therefore, it can be concluded that option (C) is correct.
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When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has created a(n):_________
When capabilities serve as a source of competitive advantage for a firm over its rivals, the firm has created a Core competence.
What is core competence?Core Competence alludes to a collection of extraordinary abilities, tactics, movements, or technology that distinguishes an industry leader from an average competitor. It is a key factor in a company's ability to outperform its rivals and gain a competitive edge over them. The following are the three defining qualities of core competence:Customers see it as having value.It can be used in more markets.It makes it challenging for competing businesses to copy.The system of the organization, which governs how employees connect with one another, and the cumulative expertise of the individuals are what make the company unique.
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The process of reinvesting interest earned to generate additional earnings over time is ________. compounding discounting annuity lump-sum
The process of reinvesting interest earned to generate additional earnings over time is compounding.
Option A. compounding.
Compound interest, simply put, is interest on interest and helps your investment grow faster. By reinvesting your dividends, you give your shares the potential to earn more dividends in the future.
Compound interest is a method of calculating total interest on principal by reinvesting the interest earned. For investors, wealth or capital grows exponentially. Similarly, applying compound interest to liability such as debt would be a heavy burden for the debtor.
Reinvesting interest is the practice of purchasing additional shares or units using dividends, interest, or other forms of distribution of income earned on investments, rather than receiving distributions in cash.
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Tenant terrell and landlord lorna enter into a commercial agreement wherein terrell will lease a small office space in a strip mall from lorna for a period of five years. the contract does not have a right of first refusal. terrell does extremely well in the first year and wants to expand into an adjoining space when it becomes free in two months. lorna isn't particularly happy with terrell as a tenant and knows that she can do just as well leasing the space out to someone else. what are terrell's options
After entering into a commercial lease agreement, the answer is since there is no right of first refusal, all Terrell can do is ask Lorna whether she will lease the adjoining space to him.
What is a commercial lease agreement?A commercial lease is an agreement for the rental of property between a landlord and a company. Because renting costs less money than buying, most businesses will prefer to do so. Because the terms are changeable and change significantly from lease to lease, commercial lease agreements are more difficult than residential leases. Understanding the terms of the lease, which outline each party's obligations and rights, is crucial before signing a business lease.Verify that the conditions of a commercial lease agreement will suit the demands of the company before signing. Unfavorable outcomes may result from failing to establish requirements before signing a lease.
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The goal of advertising a product to differentiate it from competitor's products so that price is less of a factor when a consumer makes a purchase is considered ______ competition.
The goal of advertising a product is to differentiate it from competitors' products so that price is less of a factor when a consumer makes a purchase is considered nonprice competition.
How to measure industry concentration: the concentration of four companies, the ratio of the output (sales) of the four largest companies in the industry to the total sales of the industry. Herfindahl Index is the sum of the squares of the market share of all companies in the industry.
As differentiation progresses, there may be sufficient demand to offset additional costs.
Each company's share of the total market is relatively small. It is in a very convenient location for our customers to advertise a product.
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What is a common element of most budget documents in which the chief executive highlights the major issues, constraints, priorities, initiatives, and recommendations?
The budget message approach is a formal oral presentation through the government to the council that explains the price range in phrases of dreams to be executed and how the budget pertains to the Comprehensive Plan.
The budget summary includes budgeted quantities, encumbrances, transaction totals, and finances balances and is the net equal to the printed BSR. The budget summary file now additionally includes Open Balances.
A budget proposal summarizes the predicted prices for an upcoming undertaking a good way to ease investment from project stakeholders. Your budget thought breaks down the cost factors associated with your undertaking. This suggests to stakeholders the blessings and/or drawbacks of having worried.
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A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, what will be this manager's annual revenue loss due to cashier shortages?
A manager experiences a cashier shortage that averages $50. 00 per day. if the manager's operation is open 360 days per year, 1800 will be this manager's annual revenue loss due to cashier shortages
In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.
Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".
Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.
In colloquial language, the average is a single number representing a list of numbers, usually the sum of the numbers divided by the number of numbers in the list. For example, the average of the numbers 2, 3, 4, 7, and 9 is 5.
Suppose there are four types of means: mean, mode, median, and range. In fact, the range is a measure of spread or spread, while others are the most common "measure of central tendency".
Noun. Mean, Mean, Median, Standard means something that represents the midpoint. The average is the quotient obtained by dividing the sum of a set of numbers by the number of numbers. scored an average of 85 points on the test. The mean is the simple mean or the middle value between the two extremes.
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The price of imported oil decreased in 2001. how did this affect the aggregate supply curve?
A decline in the price of a key input like oil will shift the Aggregate Supply Curve to the right, providing an incentive for more to be produced at every given price level for outputs. From 1985 to 1986, for example, the average price of crude oil fell by almost half, from $24 a barrel to $12 a barrel. Similarly, from in 2001, the price of a barrel of crude oil dropped from 25%.
In both cases, the decreasing price of oil led to a situation where the outward shift of Aggregate Supply Curve to the right allowed the economy to expand, unemployment to fall, and inflation to decline.
The lesson is that lower prices for inputs cause Aggregate Supply Curve to shift to the right, while higher prices cause it to shift back to the left.
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What quantity will the sellers be able to sell after the imposition of the price floor?
If a price control makes production unprofitable or only slightly more lucrative than average, the amount supplied declines. A price limitation does not necessarily make output unprofitable or insufficiently profitable for all producers in a field.
Effects of a pricing floor. The government imposes a price floor to force consumers to pay manufacturers a minimum amount. In cases where the government feels that producers are obtaining an unjust amount, a price floor is created. With the sole purpose of aiding producers, price floors are imposed. Price floors do have certain negative market implications, though.
Price floor and pricing ceiling are both governmental measures of price regulation. But there is a limit or constraint on how low a price can be set for any good. Government-set minimum prices for specific goods and services are required by law in order to protect producers from receiving extremely low prices.
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How does the offshoring model differ from the type of trade analyzed with the ricardianand heckscher–ohlin trade models?
The Ricardian model can be used to analyze offshoring while the Heckscher-Ohlin model only analyzes trade in finished products. There is no difference since the offshoring, Ricardian, and Heckscher-Ohlin trade models can be used to analyze offshoring.
The Heckscher-Ohlin model is an economic theory which proposes that countries export what they can produce most efficiently and plentifully . It's used to evaluate trade as well as , the equilibrium of trade between two countries which have varying specialties and natural resources
The Ricardian model shows that if anyone wants to maximize total output in the world, then one should fully employ all resources worldwide, allocate those resources within countries to each country's comparative advantage industries, allow the countries to trade freely thereafter.
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If producers are willing to sell 20 cans of soda at a total price of $10 and a local restaurant offers to pay $16, then producer surplus is equal to __________
If producers are willing to sell 20 cans of soda at a total price of $10 and a local restaurant offers to pay $16, then producer surplus is equal to $6.
Total price=$10
Offers to pay=$16
Surplus=10-16=$6
Producer surplus is the difference between the price a person would accept for a certain quantity of a good and the price they could get for the good if they sold it at market value.
The producer benefits from market sales of the good by receiving the difference or surplus amount.
Market pricing above the lowest price producers would normally be ready to pay for their goods result in a producer surplus. The Walras law may be relevant here.
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Which cost flow method is used most frequently?
a. specific identification
b. fifo
c. lifo
d. weighted average
The FIFO cost flow method is used most frequently. In its most basic form, FIFO (first-in, first-out) costing allows you to track the cost of an item/SKU based on its cost at the purchase order receipt and apply this cost to each shipment of the item until the receipt quantity is depleted.
According to FIFO, manufacturing expenses are based on the assumption that now the oldest products in such an organization's inventory have just been sold first. The LIFO technique substitutes such expenses with the premise that the most recent products in an organization's inventory had also been sold first.
Therefore, the correct answer will be option (b)
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When the zero-lower-bound problem occurs, central banks can rely on: _______
a. the liquidity provision.
b. systemic adjustment.
c. asset sales.
d. qualitative easin
When the zero-lower-bound problem occurs, central banks can rely on the liquidity provision.
The central bank, reserve bank, or monetary authority is the body that controls the currency and monetary policy of a state or formal monetary union and oversees its commercial banking system. Unlike commercial banks, central banks have a monopoly on the growth of the monetary base.
A central bank is a public institution that controls the currency of a country or group of countries and controls the money supply (literally the amount of money in circulation). The main goal of many central banks is price stability.
Central banks have several ways of controlling monetary policy, but the three most basic and widely used tools are short-term targeting interest rates, open market operations, and capital requirements.
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Why do nonprofit organizations stand to gain from using information systems, just like business?
A nonprofit organization is formed for the only cause of benefitting societal welfare in a tangible way, searching for to answer a humanitarian or environmental want. A for-profit employer commonly seeks to create earnings for founders and the employees.
Non-earnings organizations include churches, public schools, public charities, public clinics and hospitals, political corporations, prison resource societies, volunteer services corporations, labor unions, professional institutions, research institutes, museums, and some governmental groups.
The most tremendous distinction among nonprofits and for-income organizations lies of their purpose: nonprofits have a social project, whilst for-profits purpose to offer services and products that are treasured to clients and generate sales. Nonprofits also obtain positive tax breaks.
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If the present value of $110 to be received one year from now is $100, what will $100 be worth two years from now?
the value will be $121 after two years from now.
Accumulating factor
=FV\PV
=110\100
=1.1
so
Value at two year
=110*1.1
=121.
Inflation is the rate of increase in prices over a period of time. Inflation is usually a broad measure, such as a general rise in prices or an increase in the cost of living in a country.
Inflation occurs when prices across the economy rise and the purchasing power of money fall. For example, in 1980, movie tickets averaged $2.89. By 2019, the median price of movie tickets rose to $9.16.
Although high inflation is generally viewed as detrimental, some economists believe low inflation could boost economic growth. The opposite of inflation is deflation, where prices tend to fall. The Federal Reserve is targeting 2% inflation based on the Consumer Price Index (CPI).
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Flask company reports net sales of $1,350 million; cost of goods sold of $1,150 million; net income of $230 million; and average total assets of $960 million. compute its total asset turnover.
Flask company reports net sales of $1,350 million; cost of goods sold of $1,150 million; net income of $230 million; and average total assets of $960 million. Its total asset turnover will be:-
Asset turnover is calculated by dividing net sales by average total assets.
Net sales - $1350 million
Average total assets - $960 million
Asset turnover - $1350 / $ 960 = $1.41
In this formula, average total assets includes current assets, long term assets and other assets. Net sales is revenue earned by company. Asset turnover is calculated to determine how much sales is earned by using the assets of the company.
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If vito, inc. has an inventory turnover ratio of 5 times, then its days to sell must be?
If vito, inc. has an inventory turnover ratio of 5 times, then its days to sell must be 73 days
Inventory turnover is a financial ratio that demonstrates how frequently a company sells and replaces inventory over a specific time frame. The days it takes to sell the company's inventory on hand can then be determined by multiplying the number of days in the period by the inventory turnover formula.
The better the inventory turnover, as it often indicates that a company is selling its items rapidly and that there is a big demand for them. On the other side, a low inventory turnover would probably be a sign of decreasing sales and dwindling interest in a company's goods.
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Organizations should define themselves not according to the products they produce but according to?
Organizations should define themselves not according to the products they produce but according to how they satisfy their customers. In today's world satisfying a consumer is a important aspect for every company as people do not prefer to run in the rat race of brands. They more focuses on whether they are happy or satisfy with company's products or services.
Earlier doing sale was the only motive of every firm but now this is not so. Organizations uses marketing now a days. Marketing focuses on satisfying customer with sale of goods or services. Marketing also increases the profitability and credibility of the company.
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What is a marketing strategy in which the focus is on small but profitable market segments?
Niche marketing strategy is a marketing strategy in which the focus is on small but profitable market segments.
Niche marketing is defined as the strategy of channelizing all the marketing efforts towards one well-defined segment of the population. There is one important thing to understand that ‘niche’ does not exist, but it is created by a smart marketing technique and identifying what the customer wants.
This can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. A niche market does not mean a small market, but it involves specific target audience with a specialized offering.
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Defining property rights contracts and standards for goods are part of the government's interest in which economic goal?
Defining property rights contracts and standards for goods are part of the government's interest in public economic goal.
What are property rights and contractual rights?
The property rights contracts and standards for goods is very essential by Individuals or firms which helps them to be able to give room for individuals to enter into agreements with respect to their .
This do follow the legal system in the event of noncompliance, hence , Defining property rights contracts and standards for goods are part of the government's interest in public economic goal.
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When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is:________
When evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is responsive.
What is a segment?In biology, segmentation is the separation of some animal and plant body plans into a sequence of repeated segments. This article focuses on the segmentation of animal body plans, using the genera Arthropoda, Chordata, and Annelida as examples.When assessing the attractiveness of a segment, we say that the segment is responsive if it is predicted to respond favorably to the firm's offering.Organisms would be unable to perform advanced functions if they did not have sophisticated ways of movement and complicated bodily structures. Segmentation allows an organism to travel while protecting its sensitive organs from harm.Therefore, when evaluating the attractiveness of the segment, if a segment is expected to react positively to the firm’s offering, we say that the segment is responsive.
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What level of measurement is the cost (amount) of an admission ticket to a movie theater?
Ordinal level of Measurement for define the categories such as costly, less profitable, more difficult etc
What is Ordinal level ?The second of the four measurement scales is ordinal level measurement. "Ordinal" means "in order." Ordinal data is quantitative data that has naturally occurring orders with no discernible distinction. It can be named, categorized, and ranked.
The ordinal scale is a statistical data type in which variables are ordered or ranked but there is no degree of difference between groups. The ordinal scale incorporates qualitative data; the term "ordinal" means "order." It ranks variables and only allows you to quantify their value as higher or lower on a scale.
Cases in the same class are regarded as equal. Movie ratings, political allegiance, military rank, and other variables that use ordinal scales are examples.
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The legal document that describes the rights and obligations of both the bondholders and the issuer is called the bond.
The legal document that describes the rights and obligations of both the bondholders and the issuer is called the indenture bond.
What is meant by indenture?A legal and binding agreement known as an indenture is frequently related to bond deals, real estate, or bankruptcy. A thorough description of the terms, conditions, and covenants can be found in an indenture.
Who is bondholder?A bondholder is a buyer or the owner of debt instruments, which are frequently issued by governments and enterprises. In essence, bond issuers are borrowing money from bondholders. When bonds mature, bondholders are reimbursed for their initial investment, or principle.
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