Net income refers to the income which is left after every expenses and also taxes have actually been deducted. Such income represents the income left for the owner or because that retention or for circulation of dividends.
You are watching: All of the following are advantages of bond financing over common stock except
Bonds refer to source of long ax financing within the borrower agency is required to repay periodic interest on borrowed funds as well as repay the principal at the finish of the term.
Interest payment is an cost which is deducted to arrive at net income. Interest obligations reduce the net income. For this reason this walk not represent an benefit of bond financing over typical stock.
You could be interested in
What would your real rate of interest be if girlfriend lent $10,000 at 7% when the inflation price is 8%? would certainly it make financial sense t
thedesigningfairy.com: E. . -1%/NO
The adhering to can be deduced from the question:
Nominal interest rate = 7%
Inflation rate = 8%
Real interest price = in the name interest rate − Inflation rate.
= 7% - 8%
Since the nominal interest rate is lower than the inflation rate, the genuine interest price will be an adverse and this simply way that it doesn"t make any economic feeling to loan the money.
3 months ago
The adhering to are Acme"s production expenses for the quarter ended September 30th: straight materials $ 290,000 straight labor $ 240,00
Note: wrong alternatives are given as the thedesigningfairy.com $530000.
Given: straight material= $290000.
direct Labor= $240000.
manufacturing facility overhead= $39000.
Now, finding the cost of details products in the process.
As we have to uncover the cost of a details product in the procedure and we understand direct prices can it is in traced conveniently to a expense object, but indirect prices cannot be quickly traced come a expense object, therefore, we encompass only those expense that is straight impacting cost of product.
Remember, manufacturing facility overhead is an indirect cost.
Costs to certain products in the process=
⇒ prices to certain products in the process=
∴ prices to specific products in the process=
Hence, $530000 is the lot of price that have to be traced to specific products in the process.
11 month ago
A credit transaction report is a _____.
Your credit transaction report includes your credit history as report to the credit reporting firm led by leaders that have extended credit to you. The info in your credit transaction report is also used come generate credit transaction scores (hope this is helpful)
11 months ago
Read 2 an ext thedesigningfairy.coms
A newspaper columnist had an discussion with a influential town
B. Libel, because she published a false statement around the businessman
3 months ago
A manager have to make a decision top top shipping. There room two shippers, A and also B. Both sell a two-day rate: A because that $526 and B for $53
thedesigningfairy.com: Shipper A v 100.50 price per day
Explanation: To discover the finest shipping option, we have to calculate the average price per shipper.
See more: The Great British Bake Off Season 3 Episode 6, Season 3, Episode 6: Pastry
Shipper A: Shipper B:
2-day rate = $526 2-day price = $532
3-day rate = $470 4-day price = $459
9-day rate=$411 7-day rate = $412
Average price per day mean rate per day
= 526+470+411 =532+459+412
From the over calculation, holding cost for shipper A= 100.50*0.34=34.17 while holding price for shipper B= 107.92*0.34 = 36.69
From the above calculation shipper A will certainly be preferred as it has actually the lowest price every unit and holding cost.
5 month ago
Read 2 more thedesigningfairy.coms
no registered? rapid signup